Over the last 6-12 months, we’ve watched AI go from “we know it’s important and we’re trying it” to something we’re starting to get genuinely useful results from.
And importantly, getting those results is getting easier.
We can drag and drop things in. We can speak to it. We can have complex conversations with it. We can build things without really knowing how to build things.
The gap between what we put in and what we can get out is becoming pretty extraordinary.
And we’re already seeing the impact.
A recent OECD study of more than 5,000 SMEs found that of those using generative AI, 29% said AI was already helping them compete with larger companies.
And we’re still early.
Only around 31% of SMEs surveyed were using generative AI at all – and of those, only 29% were using it in the core activities of their business.
So there is a LOT of opportunity still sitting on the table.
But AI isn’t the only thing making the small business game more interesting.
I think there’s something much bigger happening.
The traditional advantages of being big are getting smaller, while the advantages of being small are getting bigger.
And that’s pretty exciting if you’re running a small recruitment business.
You can access capability without owning it.
It used to be that if you wanted more capability in your business, you generally had to hire it.
More marketing? Hire someone.
Better systems? Bring in an expert.
More output? Add more people.
Today, we can access technology, expertise, creative capability, data and automation without necessarily putting another person on the payroll.
Again, we’re already seeing this happen. Of the SMEs in that OECD research that had experienced a skills gap, 39% said generative AI had helped them compensate for it.
You don’t need the infrastructure of a big business to access many of the capabilities that used to come with being one.
You don’t need to be famous. You need to be known by the right people.
The distribution game has changed too.
You don’t need a huge marketing department or an enormous advertising budget to become well known in your market.
A founder with genuine expertise and something useful to say can build an audience and become disproportionately visible within a relatively small niche.
And increasingly, that’s how B2B buyers want to consume information.
LinkedIn’s research found 82% of B2B buyers say creator content influences their decisions, while 87% say they prefer credible content from industry influencers.
If you’re a specialist recruitment agency, you don’t need 100,000 people knowing who you are.
You need the right 500 or 1,000.
That’s a very different game and one small businesses can be incredibly good at.
A lot of what clients want is what small businesses naturally do well.
Personalisation.
Speed.
Flexibility.
Specialist expertise.
Access to the person actually running the business.
Knowing your clients properly rather than treating them like another account in the CRM.
Big businesses spend an enormous amount of time and money trying to create that feeling.
Small businesses start with it.
We just don’t always recognise how valuable it is.
You can move ridiculously quickly.
This might be one of the biggest advantages of all.
A small recruitment business can spot an opportunity today, make a decision this afternoon and start doing something differently tomorrow.
You can change your proposition.
Experiment with a new service.
Try a different way of marketing.
Implement an AI workflow.
Move into a niche.
Change a process that isn’t working.
No committees, layers of approval, or six-month transformation project.
All while the big guys are organising a meeting to think about it!
And when the world is changing as quickly as it is now, the ability to move quickly becomes a competitive advantage in itself.
Which brings me to the bit I find most exciting.
We can redefine what a successful business looks like.
For decades, growing a business basically meant more.
More people.
More offices.
More overhead.
More management.
More complexity.
But I’m not sure that’s the game anymore.
A three-person recruitment agency doing $1.5m with fantastic margins, great clients and a founder who loves running it could be a far better business than a 20-person agency doing $4m and giving its owner sleepless nights.
Technology and particularly AI means leverage can increasingly replace headcount as the engine of growth.
And that opens up a completely different way of thinking about what we’re trying to build.
You don’t necessarily need to become bigger to become better.
You can stay specialised. Stay agile. Keep your costs down. Use technology to create leverage. Become incredibly well known to a small group of people and deliver an experience the big guys struggle to replicate.
Oh, AND have a life 🙂
Small doesn’t have to be the stage you go through before you become big.
Small can be the strategy.
And personally, I think that’s what makes the small business game so exciting right now.
I never want my weekly emails to feel pitchy or salesy. The main purpose of Traction is to give you ideas and insights that can genuinely help you grow your business.
At the same time, we’ve got a lot going on here at Recruitment Garage, and I want to keep you across it in case at some point you’re looking for support.
📆 What’s happening next week in the Garage?
Josh Kirkham, VP of Operations for CoRecruit, is sharing how you can mine the gold in your data to get more clients, more placements and brush up your skills.
Thanks for being part of my community and as always, feel free to reach out if there’s anything I can help you with.
This week’s edition is brought to you by Achieve.
Achieve partners with businesses to simplify technology and deliver practical solutions people actually use.
Thanks for reading,
BK
PS. Fancy a quick chat? Book an intro call with me here.
