The human resources management market is anticipated to be worth 38 billion dollars by 2027. Due to remote work, online employees, contractors and management changes, this rapidly growing industry is constantly changing and with change there are challenges you can capitalize on. The timing is perfect for human resources professionals who want to start their own business. There are many different types of businesses that human resources professionals can start.
If you love the idea of being your own boss, you should know that over 1,600 billionaires worldwide were self-made.
It’s no surprise that independent entrepreneurs are on a steady rise, but last year was pivotal. More than 1.46 million new business applications were filled in the third quarter of 2020, resulting in a 69.9 percent year-over-year jump. If you are an experienced human resources professional you will be happy to know that there are many opportunities for you in today’s market. Leveraging years of experience to improve the HR industry with your expertise can make the ultimate difference for your career, finances, and confidence.
STARTING AN HR BUSINESS
Before diving into the world of independent entrepreneurship, here is what you should consider first.
- Determine the why – Think about what kind of HR business you would like to start and what you want to accomplish. Would you like to develop a new product, focus on a specific industry, or become a general HR consultant? Finally, research if there is a market demand for what your business would offer.
- Develop a thorough business plan – Define your buyer persona, unique value proposition, problems your business would solve, key metrics, what channels you’ll use, and revenue streams.
- Define legal aspects – You’ll have to decide whether you’ll establish a corporation, opt for a sole proprietorship, or use freelance platforms to find contractors. Regardless of your decision, it’s recommendable to turn to qualified professionals for advice.
- Establish a stable cash flow – Being your own boss means that you’re responsible for all financial operations, inflow, and outflow. Ensure that you have sufficient funds to support yourself and business costs before starting.
- Strengthen your contacts – Consider whether you have a relevant network, people you can turn to for advice, help, and referrals.
- Build a marketing plan – To ensure your business can reach the target audience, think about the channels and tools you’ll use, such as email marketing, partnerships, SEO, or guest blog posts.
If you’re unsure what kind of business to start, here are four ideas.
1. Independent HR consulting
Use your skills to become an independent HR consultant for a business or organization and help them improve their strategies, procedures, or guidelines. Choose a niche and start your website, blog, or turn to freelance platforms to find clients.
2. Recruitment agency
Perhaps you’d like to collaborate with external companies and help them find the most compatible candidates for available job positions.
3. Human Resources agency
If you prefer an all-encompassing approach, consider starting an HR agency that works with the companies to help them address their overall needs, improve programs, and implement strategies.
4. High tech product
Your skills might allow you to develop an advanced HR tech product that solves a unique problem, such as virtual training, payroll, or attendance tracking.
5. Human Resources Auditor
Audits help avoid legal and regulatory liabilities in the human resources industry.
INDEPENDENT ENTREPRENEURSHIP AS A CAREER PATH
Being an independent entrepreneur has various benefits, such as flexibility and being your own boss. Making this move allows you to decide the price of your work, dictate the schedule, and control your professional path. Take some time to gather your thoughts while answering the above questions. Consider your strengths which will differentiate you from the competition. Think about the people you used to work with, think about your past managers and take note of how you could help them be more efficient as a consultant, or external auditor. Think about how you can help companies like them to improve.
This blog post was written with Fiverr user Tinants a Level 2 Seller who writes about human resources. She also helped with the post for finding an online job that can be found here.
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