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MANAGING GROWTH IS BIGGEST CHALLENGE FOR RECRUITERS

MANAGING GROWTH IS BIGGEST CHALLENGE FOR RECRUITERS

Managing steady and structured growth is the biggest challenge for recruiters.  That’s according to a snapshot poll of recruitment owner managers undertaken by HB RIDA, the specialist recruitment investment and support vehicle.

Well over 40% of owner managers felt that growth was a key challenge while over two thirds (36%) found that attracting funding and sourcing investment was a problem.  Interestingly only 5% found that developing an exit strategy was a challenge while 14% needed help with writing a business plan.

Commenting on the results, Managing Director of HB RIDA, Helen Reynolds said: In terms of growth, sometimes owner managers can be their own worst enemies. One of the biggest mistakes is the & lsquo;Porsche and Rolex effect’. This typically happens in year three of a new business where years one and two have been very successful. Instead of keeping a & lsquo;war chest’ which can be used to invest for growth, owners reward themselves for their success and hard work - but it’s just a tad too early!  Additionally, I’m not surprised at the response on funding issues. Despite initiatives such as The Better Business Finance initiative launched in April, access to finance in the current economic climate is still very difficult. As far as I can see, the Better Business Finance Initative simply sets out an appeals process for people who have been turned down for a business loan. The one thing recruitment  entrepreneurs want more than anything else is the knowledge that the banks are going to provide more funding to help small enterprises grow. Nowhere on the Better Business Finance Initiative’s site there a commitment from the banks that this will happen. The best bet is to find an industry experienced investor to not only add financial support but who will also act as a guide and mentor, supporting the business as it grows – this is what we do for the SME recruitment sector. We offer advice on strategic planning, back office support, and ultimately on creating enough value to be able to plan an exit.”

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