Restructuring a Boutique Tech Recruitment Firm After a 40% Revenue Drop
Tech Recruitment & Consulting
Fractional Tech AdvisoryLarge recruitment consultancy facing revenue decline and service model inefficiencies
| Metric | Before | After |
|---|---|---|
| Revenue Streams | Single service | 3 revenue streams |
| Monthly Revenue | 40% decline | Back to baseline |
| Service Model | Pure recruitment | Hybrid consulting |
| Profit Margin | 15-20% | 25-30% |
Challenge
The company experienced a 40% drop in revenue due to shifts in hiring trends. Their traditional recruitment model was no longer sustainable.
Solution
- ✓Conducted a strategic analysis of service offerings to identify inefficiencies
- ✓Developed a new service structure, aligning offerings with emerging hiring trends
- ✓Created a revenue diversification strategy, helping the company pivot into advisory services
Results
- ✓The business stabilised revenue loss and pivoted into a higher-margin consulting model
- ✓Service offerings were better aligned with modern hiring needs
- ✓Positioned the firm for long-term sustainability in a competitive market
Business Impact
By shifting from a traditional recruitment model to a diversified consulting approach, the firm stabilised its revenue, increased profitability, and secured long-term resilience in a changing market.
How This Helps Investors
- • Helping businesses navigate downturns: A structured pivot plan ensures resilience
- • Aligning revenue models with market realities: Critical for long-term investment success