6 tips to help you outperform the market
There have been some recent grumblings across the UK economy and internationally. The possibility of a Brexit, the continuing instability in the Middle East and the stalling Chinese economy are among the major contributing factors. However, recruitment companies that are well run will continue to thrive and grow. After all, good businesses will always need good people.
So what are the tricks to outperforming the market?
1. Identify how economic trends are likely to impact the different sectors you work in. Invest in those likely to thrive in the months and years to come but hold back from those you anticipate are going to struggle for growth.
2. Identify any of your clients that account for 10%+ of your revenue. Start a dialogue with them. You need to know what they believe the market will do over the next twelve months and what that means for them in terms of likely recruitment spend.
3. If any client accounts for more than 25% of revenue, or two clients account for more than 40% of your revenue, find a way to spread your risk.
4. Know who your key billers are and tie them in. Know who is underperforming and work out how to manage them.
5. If you are confident of your future cash flow and the continued need for a service, then consider negotiating long term agreements with suppliers if you can use it to secure especially good rates.
6. Poach the best talent – keep an eye on the best consultants in your industry and an ear to the ground. If your competitors are underforming it can be a great opportunity to headhunt their best people.
Feel free to contact me about MyNonExec service and find out how the 20 recruitment companies I sit on the board of as their Non-Exec are outperforming their markets. Plus, I'd be happy to share how I've helped 7 owners and boards achieve way above exit multiples in the last 12 months alone.