If you’re a persuasive people person with a head for business, running a recruitment franchise could be the perfect professional adventure for you to embark on next. Great recruiters are very much in demand in 2022, and the five business plan building tips you’ll discover in this article should help your franchise to thrive and grow, even in this expanding, competitive sector.
In 2019, the recruitment industry’s contribution to the UK economy grew to £42.3 billion [Recruitment & Employment Confederation]. The pandemic created some challenges, but it also created amazing opportunities for the hiring world to shift and develop, and right now, it’s never been more profitable. If you’re thinking about finding the right recruitment franchise investment opportunity for you, a strong business plan is absolutely crucial.
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How to build a business plan for a recruitment franchise
When you decide to make a career change with a recruitment franchise, it’ll soon be time to start building a business plan for your recruitment business. A strong franchise business plan is essential in any sector, but especially in a sector as competitive as recruitment. Not only will you often be required to present your plan to your franchisor during the initial stages, but you’ll also have to present it to a bank or other funding body if you’re seeking any financial backing.
Most importantly of all, your business plan will be something that you benefit from. It’ll be a bible for your recruitment franchise. It’ll be something that you can regularly look back on and dynamically update, using it to measure your progress towards goals and keep yourself on track. Every franchise business plan, regardless of the industry or company that you’re investing with, should include the following elements:
- An executive summary
- A business description
- Product/service descriptions
- A management summary
- Market analysis
- Operational details
- Business premises details
- Sales and marketing plans
- Financial projections and requirements
Beyond those key components, here are five business plan tips focused on an investment in the recruitment industry, and on building an effective, efficient franchise business. Follow each one, and you’ll be able to become a recruiter smoothly and successfully in no time at all…
1. Carefully define your franchise’s target market and USPs
In a space so filled with businesses, you’ll need to do whatever you can to make yours stand out. This process will begin with your business plan, which should define not just what your franchise does and who it appeals to, but how your franchise does its thing and attracts its target audience unlike any other competitor. If you’re investing with a healthcare recruitment franchise like Tezlom, for example, you’ll be able to focus on this unique angle.
Welcome to the Tezlom Family. We’re not your typical healthcare recruitment agency.
Empathy and caring for others is at the core of everything we do - as an organisation and as individuals. This is why we endeavour to make sure everyone we come into contact with is looked after.
2. Detail the candidate sourcing and client-attracting strategies you’ll be adopting
If you’re seeking funding for your investment, this will be a crucial inclusion in your plan. When you can explain how you’ll be finding clients and building a talent pipeline of suitable candidates, investors will feel far more confident that they can expect a return. Consult with your franchisor and concretely explain some of the strategies your franchise will be utilising, from sourcing candidates on LinkedIn to networking with clients at local events.
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- 10 Ways to Boost Employee Happiness, Engagement, and Satisfaction
- Improving your franchise recruitment strategy
- Tips for Recruitment and Selection
- Tips for Managing Employee Turnover
- 5 Effective Employee Engagement Strategies for Your Business
3. Demonstrate an understanding of emerging hiring industry trends
As briefly mentioned above, the hiring industry has undergone a considerable transformation since March 2020 and the start of the global pandemic. Hiring technology has been massively developed and improved and recruiting processes have become more flexible in terms of, say, whether interviews take place in person online. To enter the recruitment sector on the right foot, show in your business plan that you understand it as it is in 2022, rather than, say, as it was five or 10 years ago. Current trends to consider include:
- The prioritising of candidate experience amidst a talent shortage
- The growing use of automated tools among recruiters and hiring managers alike
- The rising prevalence of fully online hiring, from application through to offer
- The targeting of passive candidates, who are 70% of the global workforce [Forbes]
4. Set realistic, measurable goals that you can return to
Otherwise known as SMART goals (Specific, Measurable, Attainable, Relevant and Time-Based), these are the types of goals you’ll be able to keep coming back to in order to measure your recruitment franchise’s forward progress. Don’t let your business plan become a stagnant, out-of-date document that you never look at again once you’ve written it all down. Make plans for the future, and either stay aligned with these plans or adjust them if your vision changes with time. Just don’t forget about them - or your plan.
5. Make realistic financial projections
Financial costs and projections are obviously a crucial part of any business plan and will determine how viable a potential funding backer finds your business to be. That said, however tempting it might seem, shooting for the stars with your projections and sharing unrealistic information is never, ever a good idea. Your franchisor will tell you as much if you share an inaccurate business plan with them.
Failing to carefully consider costs will only lead to disappointment down the line, or even to your funding support never being approved in the first place. Do your research, speak with your franchisor and existing franchisees, and make the projections contained within your plan just that: Estimates based on the study of currently available information.
Start a recruitment franchise successfully with the help of these business plan tips
Running your own business isn’t always easy, but with your hard work, the comprehensive support of your franchisor and the expert guidance of these tips, your recruitment franchise will 100% be able to thrive and attain long-term success. Stay on Point Franchise to continue your research, exploring a day in the life of the owner of a recruitment franchise and the five biggest advantages of running a recruitment franchise.
Lily Sweeney, Point Franchise ©