When do you know it is the right time to expand a recruitment agency? Even once you have answered this question and you have decided this is the route for you to take, how do you know how to expand a recruitment agency?
If you've set up your own recruitment agency then the likelihood is that you've been itching to grow from day one, before you were even really up and running. However it takes a lot as a business owner to know when the right time for expansion arrives and when you should concentrate on developing at the size and rate you are currently working at.
Take a look at your workload, are you turning away work because you don't have the capacity?
Perhaps you're not turning it away but you know exactly where you could find more work should you tap that resource. Maybe you're not pushing capacity but have been comfortably working at the same rate for a little while now and crave new challenges and new clients to keep growing your business. Whatever it is that is driving the need for expansion, you need to figure out how to approach it.
It may also be worth asking yourself in what way you want to expand.
Do you want to simply take on more business so that you can continue the growth you've been enjoying so far? If this is the case, you need to look at where your new clients are going to come from. If clients have already been asking for more or you have been regularly turning potential new clients away, then there is your answer, you follow these leads. If this is not the case for you, then you'll need to plan your approach. LinkedIncan be an invaluable tool for recruiters, make sure you are using this to the best of your ability. This is of course a business and employment oriented form of social media but other forms such as Twitter should not be ruled out either.
Revisit your marketing efforts, if you've been experiencing steady work for a while now, you may have let the marketing efforts you so meticulously put in place in the beginning go by the wayside or become outdated. Revisit, refresh and if needed relaunch these marketing materials, no one is going to trust in you or work with you if they don't know you're there and available.
Perhaps you would like to expand in a new direction, not only multiply what you have already, but introduce a new area of speciality. Diversifying your recruitment agencies' offering might be the right move for you but could take a little more hard work as you may have to alter your current offering, your website, marketing materials and possibly introduce some new members to the team if it is a particularly niche area of recruitment you are embracing.
As you expand and develop, your workforce will inevitably expand too, this is where having planned you expansion prior to taking action really comes in; have you allocated the funds you will need for your growing workforce? Depending upon the size of your expansion, do you need to look at new or bigger premises?
There's a lot to think about when considering expansion, for some it almost comes naturally, but even then there is much that needs to be planned. Don't get caught in the trap of expanding too early or too quickly without giving thought to the areas we have discussed here first.