The Scale Up Workbook - Lesson 2: Planning and Strategy

It may seem obvious but having a business plan is essential when scaling-up a recruitment company. What is not so obvious, perhaps, is ensuring that this business plan is firm yet flexible enough to allow you to adapt to any unexpected challenges you may encounter during your company’s growth.This involves having a plan that is steady in its structure (including set milestones and key performance indicators) but versatile enough so that it can be altered easily if the need arises.

When preparing a business plan for a growing company you need to be realistic and think big. Scaling a company is a long-term project and you cannot expect to see growth overnight. Most of the recruitment leaders who contributed to The Scale Up Workbook run their companies on five-year business plans, as they are aware that key investments may not generate returns for a few years down the line. As a result, it is imperative that you prepare for any potentially slow or difficult periods of expansion by continually revisiting your business plan and revising it accordingly.

Treating a business plan as a ‘live’ document is the best way of preparing your company for any challenges or opportunities that may arise. Trying to anticipate changes before they happen will also enable you to respond more quickly and effectively when the time comes. It is wise to track your market(s) and undertake frequent ‘horizon-scanning’ exercises, noting any observations you make in your business plan. This way you will at least be primed to think about potential problems or spot emerging opportunities. Printing out your goals and pinning them somewhere visible to you and your team can also help to maintain your focus on your business growth through busy or difficult periods.

Goals and targets are, however, just one part of successful business planning. When scaling-up a recruitment company, you also need to think about putting in place clear processes, strategies and procedures for your business. You need to recognise that as your business expands, major changes will inevitably occur to your existing systems: new roles may be added and responsibilities may move from one staff member to another. So writing specific procedures into a business plan can help to avoid confusion and ensure that everyone understands their responsibilities.

To enhance your growth strategy we recommend you:

1. Draw up a five-year business plan including set goals and milestones.
2. Make someone responsible for revisiting your business plan regularly.
3. Invest time in tracking your market(s) to try to pre-empt changes.
4. Put clear structures and processes in place to order your business.
5. Put contingency plans in place to prepare for any potential challenges.

For a comprehensive guide to scaling up your recruitment business, REC members can download The Scale Up Workbook for free.