How to Convince Angel Investors to Fund Your Recruitment Agency

The angel investment market remains stable. This is really good news, especially for those who want to know how to get start-up funding to raise the capital they need to start a business.

Now, if you’re in the IT sector, or even better, the mobile one, you're in with a good chance of getting the funding you need pretty easy. But what if your business does not fall into the category of “trendy” investment opportunities? What about a recruitment business?

While this seems to be a very strenuous task, with little chances of success, the reality is that getting funding from angel investors is a matter of the entrepreneur’s skills. Make sure you remember this: it’s entirely up to you.

What would investors like to hear from a recruitment agency owner?

  • =Start this way: what would you like to hear from yourself? Come up with the answers; if you like your answers, so will the investors.
  • If you are just about to start your business, why is it that you believe it will be successful? After all, there are so many recruitment agencies. What will you do differently?
  • Consider recruiting for a niche industry, which means fewer competitors.
  • Always take the competitors into account. Think of where you stand in the marketplace against them and be ready to justify it.
  • Know that the success of a recruitment agency lies in the quality of the recruiters. Coming up with a strategy on how to hire recruiters and what profile they should match will make you stand apart.

The recruiter’s profile

Even if you’re not trying to get funding for your business, this is something worth considering.

While social and communication skills are of paramount importance, they are not the most important ones. The pillar should be represented by an ethical code. If the recruiter is only interested in placing an individual and getting the commission, clearly, something is wrong.

=• A good recruiter will be thorough in his profile analysis. A certain psychological flair is a must.

• Don’t jump on those who have a sales background. If you want your recruitment agency to “live long and prosper”, then think long-term. Companies will always resort to your services and even recommend you if the skills of the candidates you select truly match those of the job profile.

Recruiters who try tricks to poach business from their competitors through the candidates they are interviewing (here’s a classic example: what other agencies / jobs have you interviewed for?) are not very much liked either. Not all candidates are prepared to answer these questions. They don’t know whether they should tell the truth: “Yes, I had 2 more interviews last week as well” (if they say yes, they might think the recruiter will no longer be interested) or “No, I haven’t had any other interviews” (the candidate might think the recruiter will not see him as a potential valuable candidate). Candidates are your assets; if investors think your team is likely to scare them off, they’ll see your business as a risky investment.

Coming up with a detailed strategy will definitely have a positive impact on the investors. “Long-term” is the key element. Nobody wants to invest in a company that artificially “blooms” overnight, then fades away. No matter the area, people trust more what’s “natural”, “organic”, and that’s because this lasts.

What Can We Learn from the Top Performing Recruitment Agencies

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Corina David

Corina David works at The Funding Angels. They organise angel networking events where the right investors meet the right businesses.

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