Starting your own company is a deeply rewarding exercise. It can also be extremely stressful, frustrating and difficult. The highs are incredibly high while the lows are inexorably low.

If you’ve seen some success in your recruitment career, you may be asking whether you’ve got what it takes to start your own agency. After all, recruitment is a career which requires an entrepreneurial flair.

Don’t be fooled by the hustle culture on TikTok or the millionaire influencers though, owning a business isn’t all cocktail parties and flash cars. It’s pouring over spreadsheets, it’s balancing the books and people management.

If you are seriously considering starting your own agency, we’ve got some guidance – based on our own experience. We can also paint a clear and honest picture about what it’s like to be a business owner in our sector. Hopefully helping you to understand whether it’s worth taking the dive yourself.

Forget your preconceptions about being an entrepreneur

It’s easy to get caught up with the excitement of starting your own company. You need to consider all angles with a clear head before you make a decision. So much of this involves forgetting what you think you know about being a business owner.

Owning a business isn’t like The Apprentice, it’s not as simple as Dragon’s Den, and it certainly isn’t as seamless as some people online will make you think.

You usually only hear about the success stories online, it’s rare you’ll find entrepreneur influencers talking at length about their failures. Moreover, you’ll often only see a snapshot of the most glamorous aspects of the journey. They don’t show the gritty, day-to-day work that’s needed to keep things afloat.

This doesn’t mean it’s not worth doing though. When you own a company, everything you do means that much more. You’re no longer recruiting for commission, you’re recruiting for the whole company, for your future.

Be prepared (financially and emotionally)

Starting out from scratch is difficult. Don’t be under the illusion that you’re going to see a meteoric rise to success. Your first year will be tough, you may not even fully establish yourself for a few years yet. Even if you bring a roster of clients with you, there will be times when you’re barely scraping by, barely making enough to break even. For the first year, you can kiss your evenings and weekends goodbye – you won’t see them for a while yet.

It’s a good idea to start your business with at least 6 months worth of earnings to fall back on, in addition to any expenses you’ll need to build a website, take out insurance, hire an accountant and more. Everything you do will become more expensive and you can’t rely on living month to month on what you earn.

Above all though, you need to prepare yourself emotionally for the strain you’ll be under. Even successful businesses can be stressful to run. This will be your main focus and priority for the foreseeable future and you need to ensure both yourself and your family are prepared for this. You’ll feel every knock back, every struggle, every rejection.

This will make it all the more sweeter when you succeed though. Every win will taste better, every deal will be celebrated harder, and every time the cash hits the bank, you’ll be in awe of what you’ve built.

You’ll need to cover all departments at the start

What are you like at marketing? How adept are you with numbers? When was the last time you read a book on employment law?

At the very start of your venture into running a company, you’ll need to be so much more than just a recruiter. You’ll need to design a logo, build a website, post on social media and invest in the promotion of your brand. You’ll also need to know the difference between gross and net profit, understand your budgets and overheads.

This will mean that you spend less time doing the work you actually want to do. Eventually, you’ll hire people to do these tasks for you, but even then, you’ll need to uphold certain responsibilities for your team.

Don’t panic though, so much of this can be learned and there are plenty of resources online which can help you out. Above all, you’ll become a student, constantly educating yourself on better ways to run your company and ensure it’s successful.

People can be the most rewarding and the most challenging parts of the job

A company’s success or failure hinges on its people. If you nurture your team, hire the right people and raise them up to be the best they can be, you’ll find the task is deeply rewarding. You may have your heart broken when they move on eventually, but that’s business. Your team will feel like your family (hence the cliche) and you’ll find friends for life while on that journey.

It can be just as troublesome though. The wrong people can pull your company down, impact those around them and cause you a real headache.

Be smart about who you hire, especially during the early stages. A wrong hire is expensive and not just financially. Get to know the person behind the CV and the polished facade presented in an interview. Look for the people that are excited by the stage in your development as a company and willing to go on that ride with you. At the early stages, you need people who are willing to go above and beyond to help you become successful. When you find them, treat them well.

Surround yourself with the right people

It’s hard to do it on your own, and we really don’t recommend it. Surrounding yourself with the right people will help propel you forward, pick you up during the tough times, and give stellar advice when you need it.

It’s a great idea to look for a mentor in the industry you work in. Look for someone who has achieved what you want to achieve and is willing to help coach you in the right direction.

Looking for a partner to go into business with is also a worthwhile idea. This means the pressures, workload and journey is halved. You’ll have someone else to lean on that can help shoulder the burden. It will also mean you’re less isolated in the early days.

Beyond that, be sociable in your industry. Get out there and attend industry events, talks and expos. Meet people and make friends. They can help direct business your way, recommend avenues not yet considered and they may even become future colleagues.

You’ll never switch off

Even when you’re sitting on a beach in the Bahamas, drinking a cocktail, soaking up the sun while reminiscing about your best year of growth yet – you’ll still be checking your emails.

Whatever your reason for taking time off, you’ll still be thinking about work. Whether you’re answering the phone to clients, helping to put out fires in the office or simply incapable of looking away from your phones due to a sense of morbid curiosity, you’ll not be able to escape it.

This is part of the package that comes with being a business owner. You can set up an extraordinary team and build a process that’s self-sufficient without you, it’ll never be enough. This is your baby, your investment, your future. You’ll always have it on the back of your mind.

If it goes well, you’ll be set for life

Much of this article has been spent telling the plain and honest truth about being a business owner. Some of it will sound negative on the surface, but realistically any Founder will tell you that it’s all part of the fun.

Your business will be something you’re deeply attached to. You’ll watch it grow and thrive over the years and when it’s successful, you’ll realise just how fun the journey was.

Moreover, you’ll be set for life. You may reach a stage where your children’s future (if you have them) isn’t something that you need to worry about either. Your retirement pot is sitting there just waiting for the right moment and it’s looking pretty healthy. Financial security is a great reason to start a business, just don’t expect it to come straight away.

Take your time and do it right

Above all, our advice to anyone considering starting their own business is to take your time. Don’t rush into it head first without understanding what you’re getting yourself into. This isn’t short term and it can be very expensive if you don’t do it right.

It’s worthwhile taking the time, picking your moment and when you’re ready, going at it with full force. If you work hard enough, are smart about your decisions and relentless in your work ethic, you’ll do well. Good luck!

Fancy taking the dive?

At RULE Recruitment, we can help to introduce you to companies that can give you the tools you need to start your own agency. They will support you with all back office activities, so all you need to do is focus on billing. These firms will provide you with your own base salary so you don’t need to stress about the finances. Additionally, you’ll start in an office space with its own culture to share, if this is the approach you want to take. They take the stress and insecurity away from starting your own venture, all in exchange for some equity. Reach out today for a confidential conversation, tell us about your plans and we’ll make the introductions so you can focus on the future of your business.