The most successful firms and individual recruiters survive because they operate efficiently, carrying the lowest risk possible. That means maximizing every new opportunity while lowering your cost of doing business.
While generalists may get the most opportunities for search business, they win fewer projects. Niche players tend to carry a deeper level of expertise and win projects at a higher ratio than generalists. Sure, being a niche player may mean fewer opportunities - but you'll win more, and that's what counts.
Niche recruiters spend less on getting new business and risk less with each new opportunity. This form of operating efficiency can have a real impact on your success and your survival in difficult market conditions. To alleviate your monthly cost of doing business even further, consider hiring a recruitment industry consultant or an accountant to review your budget. A budget review from an outside perspective can result in several new strategies:
1) Lower obligatory costs by lowering or removing ongoing costs (i.e. expensive online resources used to execute search) Restructure your business to tie internal costs to search so they grow and shrink based on your revenue.
2) Instead of firing your employees, try shifting them to an outsourced model. Pay them more as a subcontractor in exchange for removing benefit costs and issue 1099s at the end of the year. Give them bonuses based on your revenue and success, resulting in the potential for fewer hours of work and more revenue. Offer to shop their capabilities to others in the industry so you can get others to contribute to their revenue. You'll be happy to remove the stress of "taking care of your employees" each month, and by providing them office space and tools, you'll help them succeed too.
3) Get rid of your internal technology (and support) by shifting to an outsourced, web-based model. This will lay the groundwork for a flexible business that can be operated from anywhere. It will allow you to plug in (and unplug) external help in accordance to your revenue pipeline.
Other ideas?
