Why Recuiting Firms Stop Growning

It seems to me that there are a few big players in the Recruiting Market Place that have learned how to effectively grow and control their company.

My observation is that those firms that have difficulty growing beyond a certain size (15-25) have some common road blocks that they struggle with.

At this size the principals tend to be active billers as well. This is the point where the time to manage the firm becomes too demanding to also maintain their billing levels. So they have a choice to make;

1. Decide that they want to remain active billers and choose to not grow the firm any larger.
2. Decide they want to remain an active biller and bring someone on board to manage the operational side of running the business so they can continue to grow.
3. Decide to shift their focus from billing to running the firm.

Each of these options has their pros and cons.

1. Choosing to not grow the firm allows you to maintain control and do what you enjoy, but for your recruiters this can be a down side because you will inevitably have those that feel they are stagnating and look to find other opportunities. For a small firm the impact of 1 high biller leaving can be significant.
2. Deciding to hire someone to help handle the operational aspects can be a great way to grow your firm, but as an owner you are relinquishing some control, so you need to make sure your choice can do what you want and need.
3. Shifting from being an active biller to running the firm sounds great, but realize that their will be a revenue drop when you stop billing. You need to be prepared for that with either a cash reserve or a transition plan.

My experience is that most small firms choose to remain small, more out of fear of relinquishing control than anything else.