At what point, or indicator does a Recruiter say, 'Why am I getting a piece of the action when I would take home the whole cake?' Here are some cold hard facts, written to make you think and feel that knot in your stomach, and trust me, that knot does not go away when you go it alone!
"Should I quit and be my own boss?"
This question has floated inside the dream bubble of most successful Recruiters, or any revenue generating employee that relies on a desk, computer and phone as their tools, such as real estate agents or stock brokers.
And so I have taken it upon myself to try and peel away at some myths and facts to help answer this question.
Always think of money. Before you think of having a fun, independent and entrepreneurial life style, a cool logo, and the best work environment since Google, consider the cash! There is an age old saying: Turn over is vanity, Profit is Sanity and Cash flow is King! If you have the tenacity to save enough money to sustain you for a minimum of six months, AFTER EXPENSES, then you could be on your way.
Here is a snapshot of expenses:
ACCOUNTING FEES. ADVERTISING. BANK CHARGES. EMPLOYEE COSTS. COMPUTERS. INSURANCE. LEASE. LEGAL. RATES. VEHICLE. STATIONERY. REPAIRS. SECURITY. SUBSCRIPTIONS. TELEPHONE. TRAINING. TRAVEL.
Make sure you have a plan. A proper business plan. There is a reason why banks ask for a business plan before giving out a loan, and that is to see whether or not the entrepreneur has done his/her homework. We all know that not everything goes according to plan, but that is precisely why a plan is so vital. It allows you to stick to a set of restrictions and projections which will give clarity in all the chaos.
Just because you were a good Recruiter, does not mean that you know how to run a business. Its as simple as that. In many ways when you go out alone, you loose touch with the thrill of the hunt that made you all that dough.
The reason for this is that everything is you problem when you run a business, not only lead development and placements.
If the phone is down, it's on you!
If the Client doesn't pay, it's on you,
If there is a Department of Labour inspection, it's on you.
If SARS or CIPC are not in order, it's on you.
All of these elements would have been present and achieved by others around you within a company. If you think you have the capacity to deal with every foreseeable problem and leave some energy for the unforeseeable, then you might make it.
There is zero spoon feeding in business, its tough.
Gary Player said, "The more I practice, the luckier I get." And it is true in business. You will fail over and over and over and over and over, but be happy that you were fortunate enough to be given the opportunity to fail. In business luck is a factor that can not be quantified. I once got my biggest placement from sitting next to the right person at the right time.
And lastly: Support.
Without an excellent support structure, be it a wife or husband, even one of those ugly pugs, you will go loopy. There is a lot of negative energy out there, and the odds are stacked against you, when you go out alone in business, and just by having that someone to say "Well done!" and "That's great progress." means the world to an entrepreneur.
So if you are considering to leave your job to go at it alone, just remember that it's not impossible, its just improbable, and that is the ceiling that every entrepreneur needs to break time and time again.