As a recruitment agency owner, it might have crossed your mind from time to time — how much could I sell my business for?
Even if you have no intention to sell in the near future, you might be intrigued to know your recruitment agency’s value.
Before considering the price, there a few different ways you could increase the value…
1. Don’t put all your eggs in one basket!
If you ever came to sell your recruitment agency, one of the first things a potential buyer would look at would of course be your client list.
Ensure you have a good mix of clients, from longstanding anchor businesses to those big hitters that rely on you a few times a year.
If you put too much emphasis on a handful of clients then, as you well know, you increase the risk factor within your business.
2. Build a strong infrastructure
Establishing a range of recruitment tools within your agency helps to build a strong infrastructure.
This adds value to your recruitment business as it’s a system that someone else could easily pick up and move forward.
It also shows that your recruitment agency is positioned and prepared for future growth, an attractive feature for any buyer!
3. Invest in your database
“Data is a precious thing and will last longer than the systems themselves.”
Don’t underestimate the value of a great database!
You’ll significantly increase the value of your recruitment agency by having an accurate database of client and candidate information.
It means that if someone was to purchase your agency they’d have a really strong starting point for marketing and business development.
However keeping your data accurate takes time, so be sure to regularly update your data to keep the value high.
4. Make your agency more visible
Building a higher profile for your recruitment agency is another way to demand more for your business.
This might mean applying for industry awards or employing a PR consultant to promote your business in relevant publications.
Even building a decent social following can increase the value of your agency as it demonstrates an engaged audience.
5. Always be mindful of how you could expand
An interested buyer would want to know exactly how you envision adding value to your business in the future.
For example, if you’re working in permanent recruitment, does your infrastructure allow you to easily flex into temporary recruitment?
If you specialise in marketing, does your existing client base mean you could expand into sales recruitment?
Showing how you could grow and adapt your product offering shows not only how you could grow, but also how you could flex to changing market conditions.