James Caan urges SMEs to use to recession to grow

James Caan urges SMEs to use to recession to grow

2.7.2009

This week in his Daily Telegraph column, webrecruit’s chairman, James Caan advises the UK’s SMEs to capitalise on the recession by recruiting new staff.

“In the most difficult time to sustain and develop a business for nearly two decades, the last thing employers expect to hear is encouragement to take on more staff. But that's exactly what I’m doing. I'm urging the UK's businesses to capitalise on the current economic period, to grow.

I can already hear people crying out 'why hire at a time like this?' Because, to put it simply, the market is saturated with great people that could transform your business, so use it to your advantage.

The mass redundancies from companies of all sizes, gives smaller companies a once-in-an-economic cycle (and possibly lifetime) opportunity to compete with their larger peers for high-calibre candidates. As someone who champions smaller businesses, I firmly believe these companies shouldn't have to settle for second best.

One small business owner wrote to me last week explaining how after five years in the recruitment trade, he'd decided, at the start of the year, to set up his own company in spite of the recession. His main concern was how to expand the business and at what cost. Two people had approached him who were both willing to invest, but for very different stakes within the company.

Personally, I think it's commendable this reader has set up his own company. It's a fantastic time to start up a business and the current economic period shouldn't necessarily be seen as a deterrent.

But he's right to worry about how much of a stake he should be willing to part with. It reads like a catch 22 situation. He needs the investment to get the ball rolling, yet he's apprehensive about how much of the business he's willing to sacrifice.

I believe that now is the ideal time to get someone else on board. The market is saturated with people changing industries and careers. There will be quality people available who previously wouldn't have given working for a small business, let alone a start-up, a second thought.

As a start-up business, he's right to question whether he should let the business grow organically or through investment. And as an entrepreneur, I'm all for investments. But they are a large commitment, so he'll need to be clear on what the investment is for.

To read the full article, as featured in the Daily Telegraph, click here.

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