Start-Up Recruitment Founders in the Contractor Market - Operating Under a Restrictive Covenant

Launching a contractor-based recruitment firm is both an exciting and challenging venture. The rewards can be huge, but many are reluctant to step into business ownership, financial freedom and success. It's risky enough that you're moving from regular high earnings to zero income. Build in a restrictive covenant from a previous employer and the level of risk rises even more. However the path to success can be achieved through carefully structured planning, relentless activity and innovative tactics. A restrictive covenant might limit your ability to contact former clients and candidates or operate in specific industries or geographies, but with the right strategies, you can outpace your previous employer by building a new client base and establishing a dominant market presence. Here's how to navigate this complex landscape with an “aim, fire” approach.

1. Market Mapping: Outpace Competitors by Expanding Your Focus

Where do you even start? Before you leap, market mapping is crucial when you need to identify new clients, especially if your previous client base is going to be off-limits. To stay ahead of your former employer, you must be relentless in your approach, exploring and targeting new markets and industries with precision and speed.

Key Strategies for Contractor Market Mapping:

• Rapid Geographic Expansion: If your restrictive covenant limits you geographically, quickly research into adjoining or new regions or even international markets. Be proactive in researching and entering these markets, establishing your presence where demand for contractors is growing.
• Relentless Exploration of New Industries: If your sector is fully restricted for 6 months, don't just dip your toes into new sectors—immerse yourself fully. Explore high-growth industries where demand for contractors is booming. By being first to market in these sectors, you can outpace competitors who may be slower to adapt.
• Focus on SMEs and High-Growth Start-Ups: While your former employer might focus on large corporations, you can carve out a niche by targeting small to medium-sized enterprises (SMEs) and high-growth start-ups. These businesses often need contractors for scaling, product launches, and temporary expertise, making them ideal clients.
• Identify Emerging Trends: Stay on top of industry trends and developments. Whether it’s new regulations, technological advancements, or economic shifts, be the first to identify and target companies that will require contractor support, allowing you to outmanoeuvre your previous employer.

2. CV Stripping: Unearth New Opportunities with Speed and Precision

Old school CV stripping is a powerful technique that can help you discover new clients quickly, even when you’re restricted from approaching your former employer’s clients. To outpace your competitors, you need to execute this strategy with speed and accuracy.

How to Use CV Stripping Effectively:

• Diversify Contractor Profiles: Don’t limit yourself to contractors who have worked only in the restricted sector. Target contractors who have worked in your sector, but also from diverse backgrounds, industries, and specialisations to uncover companies you haven’t worked with before. The broader your search, the more opportunities you can identify and still place contractors with a familiar skill set.
• Fast-Track Lead Generation: CV stripping then allows you to quickly gather insights about potential new clients. As soon as you identify companies that hire contractors, act fast to research them, identify key decision-makers, and plan your approach.
• Door Openers: Once you know the type they have hired before, use a first-class candidate(s) to open the door in your approach. At worst, they will know that you have what they want and that you are a player in their market.
• Build a Rapid-Fire Pipeline: Use the information gathered from CV stripping to create a list of companies and candidates that are likely to match. Prioritise them in your outreach efforts and maintain a high level of activity to keep your pipeline full and moving.
• Combine with Market Mapping: Cross-reference the companies identified through CV stripping with your market mapping data. This dual approach will help you target the right companies more effectively and stay ahead of your competitors.

3. Leveraging Your Network: Legally, Ethically, and Aggressively

Once you are up and running, your network is a critical resource, but when bound by a restrictive covenant, you must leverage it carefully. However, being cautious doesn’t mean being passive. You can still use your network aggressively and strategically to build new connections and outpace your previous employer.

Strategies for Expanding and Activating Your Network:

• Maximise Referrals: Encourage your current contacts to refer you to new prospects. While you can’t solicit clients from your previous employer, nothing stops you from receiving referrals outside that circle. The more referrals you generate, the faster you can build your client base.
• Aggressively Expand Your Network: Attend every relevant industry event, webinar, and networking opportunity in your new focus areas. The more connections you make, the faster you can build a robust network that opens doors to new clients.
• Proactively Join Professional Associations: Don’t wait for opportunities to come to you. Join professional associations in your new target industries and actively participate. These platforms often provide direct access to potential clients and valuable industry insights.
• Dominate LinkedIn: Use LinkedIn as a platform to establish your presence. Engage with content daily, join and contribute to relevant groups, and connect with professionals who can introduce you to potential clients. Consistency and visibility will help you stand out and attract interest.

4. Aim, Fire: Building a Unique Brand, Relentless Activity, and Rapid Client Relationships

Finally, to truly outpace your previous employer, you need to combine the new strategic aim with relentless activity and build client relationships quickly. By establishing a strong, distinct brand, maintaining high activity levels, and focusing on creating trust and rapport with new clients, you can attract and retain clients swiftly, ensuring a dominant market presence.

Steps to Building a Brand with an Aim, Fire Approach:

• 'All In' Niche Offering and Executed Relentlessly: Get your niche established quickly within the contractor recruitment market and treble check it isn’t a focus at your previous employer. Whether it’s a specific industry, type of contractor, or service, focus your efforts here and pursue this market aggressively. Your specialisation will help you stand out and attract clients looking for that specific expertise. Be explicit in what you do. Inch wide, mile deep. You're 'All In' now.
• Set Stretching Targets for Activity and Success: Establish ambitious targets for both your activity levels and placement success. Whether it's the number of calls, candidate interviews, outreach emails, client meetings, or contractor placements, set goals that push you to operate at the highest possible level. You are not in the comfortable blanket of employment now. Live and die by these metrics, constantly measuring your performance against them and adjusting your strategy to ensure you’re not just meeting, but exceeding your targets.
• Build Relationships with Clients Fast: The faster you build strong relationships with new clients, the sooner you can establish trust and loyalty. Meet face-to-face with clients whenever possible, as personal interactions can significantly accelerate the trust-building process. Be proactive in addressing their needs, providing value, and demonstrating your commitment to their success from the very beginning. This rapid relationship-building approach will set you apart from your previous employer and establish you as a trusted partner in the contractor recruitment market.
• Maintain Relentless Outreach: Outpacing your former employer means maintaining a high level of activity in your outreach efforts. Regularly reach out to new contacts, follow up on leads, and stay engaged with your network. Give feedback throughout the hiring process to both parties. The more active you are, the more likely you are to secure new clients quickly.
• Invest in Rapid Content Marketing: Create and distribute high-quality content regularly. Blogs, white papers, case studies, and industry reports should be part of your strategy. Aim to become a thought leader in your new niche, and fire off content at a consistent pace to keep your brand at the forefront. Outsource this.
• Optimise Your Online Presence for Quick Impact: Ensure your website and social media profiles are optimised to reflect your new focus and unique selling points. A well-designed website and active social media presence will make it easier for potential clients to find you and see your value proposition quickly. Outsource this.
• Professional Back Office: Find great partners for all non-core activities to provide a professional and seamless operation, and allow yourself to devote your entire time to marketing, sales and delivery. This includes matters such as Pay&Bill, Accounts, Web, Content, IT Support and Company Secretarial.

Conclusion

Navigating a restrictive covenant while launching a contractor-focused recruitment start-up requires a combination of strategic planning, relentless activity, and a sharp focus on outpacing your competition. By expanding your market focus, using CV stripping and networking aggressively, maintaining a high level of activity in your brand-building efforts, and rapidly building strong client relationships, you can outmanoeuvre your previous employer and establish a successful recruitment business. This “aim, fire” approach will not only help you comply with your restrictive covenant but also position your firm as a dominant player in the contractor recruitment market.

#RecruitmentStrategy #StartUpSuccess #MarketExpansion #ContractRecruitment #RestrictiveCovenant #BusinessGrowth #Networking #ClientRelationships #OutpaceCompetition #NicheMarketing #BrandBuilding #RecruitmentTips #IndustryTrends #SMEs #RapidGrowth