As with setting up any business whether at home or abroad, you must ensure there is a sound business case for doing so. Thorough research is vital and the level of competition you'll face should not be underestimated. "Per head of population, we probably have as many recruiters as the UK has and over the last three or four years in a booming market there have been heaps of start-ups and lots of entrants from the US, UK and Europe," says Burns.

In such a saturated market, the key is to ensure you have a unique proposition. Hydrogen Group runs a Sydney office from London and one of its motivations for setting up was to focus on scarce markets, which previously weren't being catered for. "We conducted a survey and in the legal/IT market, 35% of the people we surveyed said that they look overseas for candidates now," says Steve Garner, director of Commerce Partners, a division of Hydrogen, who was responsible for setting up and still manages its Sydney office.

"We do [serve] the domestic market in Sydney, but it also offers us the second option of creating a global pipeline of candidates and a potential solution to candidate scarcity in the UK."

Hydrogen drew on the expertise of its entire business to map out the market and ensure it fitted with its model of serving candidate-scarce and growing markets. It then developed sector-focused consultants to work only in these niche areas, sectioning the Sydney market into the areas that the business would benefit from most in the mid- to senior market.

When WH Recruitment, formerly the Australian arm of London-based Walker Hamill set up in 1998, it made certain its candidate and client pipelines were already in place so it knew there was a genuine demand for its services. WH takes this approach with every city, explains managing director Niall Hamill, who set up its Sydney and Melbourne offices in 1998 and 1999 respectively. "We always carry out a vast and thorough analysis from both a client and candidate perspective," he explains. "The market is highly competitive and you need to have a very refined pitch with a truly unique proposition that will be easily recognised by your clients."

Hamill, who, following a management buyout in 2002, has subsequently opened up in Hong Kong and Singapore, adds that he also ensures all of the back office operations are put in place first.

Another mistake that some organisations make when setting up in any country is to do so on the back of a single client with the hope that more business will duly follow. Digby warns of the folly of this and cites Greythorn's own experience of setting up in the Bay area of San Francisco, largely on the promise of a lot of business from one client, which then failed to materialise.

"You can't just pack up and go — you've got to make sure that you choose your location for sound business reasons," he says. "You have also got to be prepared to change plans [if need be] and to move with whatever is happening."

Steve Garner adds: "Be very clear about your strategy for growth — what is going to make you successful — and draw upon as much domestic and local knowledge as you can."





If you only have time to read this…



l Do your homework and lots of it

l Establish that your marketplace isn't saturated or overly competitive

l Make sure you have a unique proposition that will be attractive to potential recruitment consultants

l Budget conservatively as it will take you longer to penetrate clients and attract candidates

l Verify that your headcount is realistic as it takes time to achieve "critical mass"

l Be satisfied that you have the financial resources, accounting and operational infrastructure in place in advance

l Back it up with the best marketing material that you can produce

Source: Niall Hamill, WH Recruitment