I have fallen out of love with the recruitment business

February 28, 2011

 

 

 

 

 

 

 

 

Have you ever felt that you’ve had enough and want to sell your recruitment business?

Well you are not alone. The challenge is that selling your business is not that simple, because there are some essential steps that you must take first. Not understanding this could cost you thousands of pounds and in the case of one of my clients, it cost her just over £1.2m.

Click on the link below to discover the “7 essential steps you should take before you sell your recruitment business?”

http://tinyurl.com/6l75hby 

I recently received this email from a recruitment business owner:

Terry,

Can you please call me ASAP I need your help.

After setting up our IT recruitment business 7 years ago, we have quite honestly fallen out of love with the whole IT recruitment market and want to sell the business quickly. At first my business partner and I were so enthusiastic and had great plans. The very first goal was to get to a million pound turnover business, and this was achieved within two years.

In year three we were approached by a potential buyer and an offer was made to buy us out. After the potential buyer had carried out some due diligence on our business they came to the conclusion that the success of the business was heavily dependent on us as owners and directors, the consequence of which the offer made was dependent on us staying in the business for another two years before we could fully exit the business, so we declined the offer. In that time we have grown then contracted, survived two recessions and quite honestly we are both feeling battle weary and want out. Can you please give me a call at your earliest convenience, as I would like to sell this business before the summer?

It may come as a surprise to you but we get a lot of letters/emails and phone calls like that. They usually come: after the Christmas holiday; around September time; after a major birthday and when there has been a fall out or bereavement within the management team.

I am sure that you can appreciate as a business owner yourself that these decisions do not come easily. After making the massive decision to start a business and then give up everything, the decision to sell is never easy.

Did you know there are “7 essential steps you should take before you sell your recruitment business?” After receiving so many emails like the one I just mentioned, I thought I would get an expert in to share with you the secrets to successfully selling a recruitment business.

On Wednesday 9th March we are hosting a webinar where a financial guru, Guy Pain from Cottons Chartered Accountants, will share with you the “7 essential steps you should take before you sell your recruitment business?”

In this webinar you will discover:

  • How to quickly value your business
  • The 3 things you may be doing unwittingly that is literally STOPPING potential buyers from making an offer
  • The difference in value whether your business be perm, temp or combination of the two
  • Why systemisation and processing of your business is essential if you want to achieve the maximum value
  • The one thing you must never say to a potential buyer, if you did it could cost you thousands and some cases millions of pounds
  • The top tip that is guaranteed to keep your team motivated during the sale

This webinar is only for recruitment business owners who are members of the group: Business Growth Solutions for Recruitment Owners & Directors on LinkedIn. There is no charge for attending.

As a bonus when you attend you get a workbook by email a few days after the webinar so that you get involved in the exercises, take notes and turn the ideas into solid, result-getting ACTION that will get the maximum benefit for you and your business.  There are limited spaces available, once these places have gone that’s it.

Whether you are considering selling now or in the future or just want to increase the value of your business then it’s important for you to attend this webinar. Click on the link below to register for the webinar.

http://tinyurl.com/6l75hby

Wishing you continued success,

 Terry Edwards

drewcoaching

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It’s Madness!

February 17, 2011

Do you know the definition of insanity?

It is doing the same thing again and again and expecting different results.

Every Saturday morning a group of friends and I who are all keen on triathlons, take part in a 30 mile cycle ride through the beautiful Northamptonshire countryside. I usually leave my home at 8.30am for an 8.45am rendezvous in the local park. I have been doing this for a couple of years now and take part most weekends weather permitting.

So, every Saturday morning I get up, make myself an espresso and make a cup of herbal tea for my wife Sandra. Then it is on with the cycling gear and off I go to meet my friends.

After each Saturday morning cycle the same ritual occurs where I wash the bike and put it away, put my helmet on the shelf and my cycling shoes on the floor.  All organised and tucked away in the garage.

This particular morning didn’t seem unlike any other Saturday morning and at about 8.15am I went to the garage to get my bike, put on my helmet and cycling shoes.  However, the shoes weren’t there!  Now I must confess, I am running to a tight schedule and start to panic that I am going to be late.  I immediately start removing other cycles, shoes, toys and books in the garage looking for the cycling shoes but no luck.  I then ran back in the house and looked under the bed where I keep my everyday shoes. I asked Sandra if she has moved them, but she looked at me in disbelief and said “No. Where did you put them?” I then look in the children’s room (you never know), followed by the kitchen, the dining room, the living room, the utility room and back to the garage to have another look.

At this point I am frustrated, so I go back to the bedroom to ask Sandra if she is sure that she hasn’t seen them. Not only is she now looking at me in total disbelief again, but she is also slightly irritated and quite rightly points out that if she had, she would tell me.  It is now 8.30am, I am late and I still haven’t found my cycling shoes.  Yet again I rush back to the garage to look in exactly the same places as before hoping some how they will be there this time. Guess what? They’re not! I then blame the children, Sandra, the dogs, the economic climate and anyone within a mile radius of my house.

Once I regained my sanity, it got me thinking.  The same is true in business.  How many recruitment business owners conduct their business that way? Let me explain, a familiar statement from recruitment business owners is “we would like more business.” I then ask how do you get business at the moment and they respond “Oh the usual, telephone and word of mouth.” So I ask “Is this working to your satisfaction?” Of course the answer is no. So I ask, ‘why do you keep doing the same things that don’t work?  This is like me going to the garage numerous times to look for my cycling shoes. The shoes weren’t there the first time, why on earth would I expect them to be there the second time, or even the third time I looked – that really is insanity.

The definition of insanity is doing the same thing again and again and expecting different results.

Are you using the same methods for acquiring business that are not working for you? 

Have you got consultants in your team who are underperforming and have been for some time?

Has your business grown modestly, if at all whilst your competitors are growing?

The reason why your competitors are growing is because they are doing things differently to you.  You keep doing the same things and expect different results.

The good news is, if you are aware of it, then you can do something about it.

YOUR FAST TRACK TO MORE PLACEMENTS….
Click on this link: Fast Track To More Placements for a free 30 minute coaching session on how you can make more placements and earn more money. Alternatively, you could keep doing what you are doing – that is not working.

Wishing you continued success,

Terry Edwards
drewcoaching


Do you have a business or a job?

February 3, 2011

More importantly do you know the difference?

At least twice a week every week I will get a phone call from a recruitment business owner wanting to discuss business coaching. One of the first things I will look to establish is, if they want to be a “job holder” or a “business owner.”

One of the differences between a job and a business was best explained to me by an accountant, she worked for one of the big four accountancy firms. She explained a job is where you work and you earn money, whereas a business will generate an income whether you work or not.

She also pointed out that when you have a business you have something that has real value to a potential buyer, when you have a job this is of little value to any potential buyers.

Let me explain, whatever your opinion of McDonald’s restaurants what you do know is that wherever in the world you go and order a McDonald’s, the quality, the size of meal and service are pretty consistent. What you also know is you don’t have to be a brain surgeon to work there. The point is that as a business, McDonald’s owner does not have to be there frying the fries or tossing the burger, because the owners have put in place the essential building blocks for creating a business.

The most important thing is your mindset as the business owner; this means when you create your business your vision should be of a business without you doing the prospecting, recruiting etc.

The second building block is the systems. As a recruitment business owner, your marketing should be such that you have a system for generating 10 leads per consultant per month. Did you know that some of the most successful recruitment businesses do just that? And that it takes about two months to put in place?  Also you need a process for following up on those leads i.e. from initial telephone call to offer and start date for the candidate.

Any business owner that wants a business must build a team to deliver. This surprisingly always seems to be the most challenging aspect of building a recruitment business. I always find it quite interesting that a recruiter would find it challenging to recruit a team to create a business. Once the owner puts in place systems and processes for the business, then there is no need to find the elusive “top performing biller” that many recruitment business owners are constantly seeking. That aside why would a “top performer” leave their present company and start all over again with you?

So you have got the right mindset, you have put your systems and processes in place, which has enabled you to recruit individuals with the intellect and potential to achieve the numbers you desire, what next. Well as I am sure you have heard many times “If you can’t measure it you can’t manage it.” In other words what have you put in place that will measure the processes and systems? Do you know what you need to measure? In other words what Key Performance Indicators will you be measuring.

Successful recruitment business owners have acknowledged if the business cannot positively function without them, then it is a job. Business professionals who are running strong recruitment companies have them constructed as organisations and organisations utilise multiple talents and resources to achieve the long term goal of the business.

If you would like to discover if you have a job or a business that maybe of value to a potential buyer then click on the link below and we will send you a questionnaire, to uncover the potential of your business. Simply complete the questionnaire and calculate your points for each answer. Your total score will reveal whether you have a job or a business.

Uncover the potential of your business – DOWNLOAD QUESTIONNAIRE

Wishing you continued success,

Terry Edwards

drewcoaching