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Becoming a Recruitment Business Builder: The Less is More Strategy
Posted by Denise
The next secret is what we call the less is more strategy, and this is based on using profit levers in your business.
If you want to grow your business, we’re taught that you need more clients, more consultants, more jobs, more people, more candidates, and multiple desks and niches.
Plus, you also need to work long, hard hours and, of course, be accessible 24/7.
The fact of the matter is this is NOT TRUE.
The fastest way to scale to 7 & 8 figures is much easier than you would expect.
We call this the less is more strategy; achieving a lot more with a lot less.
Profit From Pareto’s Law
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Understanding and implementing this principle means that you can focus, optimise, and master only one or TWO key processes or areas in your business, and results can transform within weeks.
How is this possible? By understanding and implementing one of the most useful universal principles, Paretos’ law.
For those of you who haven’t heard of Pareto’s law – it’s the observation that most results, i.e. 80% of your results (or more), come from a minority of inputs or resources– i.e. 20% of your inputs or resources.
So what this means is that only 20% of your actions, your time, 20% of your team, your candidates, 20% of your clients, advertising sources give you 80% or more of your results.
So the truth is you do not need lots more to double or triple your sales. You already have everything you need right under your nose, more than enough; you just haven’t realised it yet.
An example of the Pareto law principle is Jordan Belfort, the Wolf of Wall Street. Love him or hate him, there is a cool lesson to learn from what he achieved.
One of the key things he and his team mastered and optimised that created his significant wealth was his “Penny Pitch” script.
He was able to take a group of uneducated, on the face of it, mediocre performers and turned them into millionaires by getting them to become masters at the penny pitch script that he created.
One part of his process converted 80%+ of his results; the pitch was gold.
So by getting his team to master and implement this ONE pitch each and every time, they were able to convert many leads into sales.
The pitch = predictable revenue.
So you may be wondering…. what are the other hidden profit levers in your business, and how do you uncover them?
Your Data Will Identify Your Profit Levers
First things first, you need to analyse basic data in your business.
Now I hear you; you’re not good on data; you don’t have the time to stop and look at this.
You’re too busy dealing with the business’s day-to-day running or being a hands-on biller.
What if I told you – when you know what these profit levers are, you are sitting on a process that will create predictable revenue month in and month out.
Imagine how that would transform your life, knowing that placements and revenue were coming in consistently. Our clients have generated millions of dollars/pounds in revenue with their profit levers.
Important: You’ll also create more time in the long term when you do this analysis on average 4-6 extra hours a day.
OK – so what do you analyse? We use the Business X-ray tool, which hones down to what your possible 80/20 profit levers are in your business.
- You need to analyse who your buying clients are, which ones you are most successful with, and why.
- You need to analyse your most placed candidates – what job titles they have, skills, their location and why you are successful at placing these specific candidates
- You need to analyse your KPI activities to see exactly where you can tweak them to make significant gains in the process.
- You need to analyse where you spend your time and on what.
Here’s the thing.
If your team currently places less than 50% of jobs, you are sitting on a significant opportunity.
If your team currently places less than 50% of the candidates you register, you are sitting on a significant opportunity.
If you work multiple niches or desks – you can x10 your results by cutting it down to one.
If you are charging 15% or less on your fees – you are sitting on a significant opportunity.
Analyse and Decide
The first step is to carry out the analysis.
The 2nd step: use the data and decide which profit lever will give you the highest ROI when you implement it.
The 3rd step: With each of these Profit Levers, there is a process / a system you can teach your team to implement and master that will leverage the results significantly.
For example, one of these systems we call Gold Jobs Game Changer.
- MPC Game Changer
- Fee Increase
Gold Jobs Game Changer is a process where you get really clear on what a gold job is for you and then follow a system and scripts when taking on a job so that your team are guaranteed to win either quality exclusive or retained jobs from the start; similar to the penny pitch process Jordan Belfort taught his guys.
We also created a system that generates and converts exclusive – what we call ‘unicorn’ candidates – we have another process to win retained high fee business…
And when you pick the ONE profit lever that gives you the highest return, build a system or process that guarantee results, get your team to implement this process and optimise the hell out of it.
Then boom, you will see increased results and more time within weeks.
To give you an example of how this has worked, one of our clients Tom, an MD in the property recruitment space, with a team of four.
He was the biggest biller by a country mile and frustrated that his team couldn’t bill to the same level as him.
They had a ton of jobs on, and they placed less than 4% of these!
Tom then implemented the Gold Jobs Game Changer. He got clear on their Gold job criteria, then audited their job stock, got rid of non-gold jobs, and focused their efforts on filling the gold jobs.
Within one month of implementing the Gold Job Game Changer, his team of 4 made an extra £150k billings. To put that in perspective, that’s an extra £37.5k per head billing in one month…
His team did more with a lot less and had happier clients.
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So you see how less is more, and when you know what that the profit lever is and get your team to implement the process, you can make massive in-roads very quickly.
Even if Tom had just played that one profit lever, that would have been good, but he implemented a couple of other profit levers too, which is one of the reasons why his billings went from £281k to just below a £1million 15 months later, the billings coming from Tom’s team.
The bottom line here is this. You only need to focus on ONE or two key areas of your business process to double or triple your results.
That means you can stop worrying about the hundreds of other things you should be doing in your business and make it simple for yourself.
Nicky and Katy
Would You Like Our Help To Identify and Implement Your Profit Levers This Year?
Ready to become a business builder? Over the last 13 years and hundreds of clients like Tom, we have proved how the strategies we teach can shift your business.
If you want our help, it starts by booking a call with us here.
Nicky and Katy