6 operational lessons for building a business that lasts

Michelle Carson founded executive search firm Holmes Noble in 2005. More than two decades later, the business has survived the global financial crisis, the Covid pandemic and the everyday challenges of operating in a competitive industry; 92% of its placements remain in post after two years, while 96% of assignments over the past year were filled from the original shortlist.

Below, Michelle gives Business Advice readers six transferable operational tips on building a business that lasts the test of time.

1. Set standards you are prepared to uphold

When I started Holmes Noble, the recruitment industry often received bad press for being too transactional. I wanted to create a business with higher standards; one built around values like resilience, courage, generosity, honour and integrity. Those values have to influence how the company operates, rather than simply appearing on its website. Give serious thought to what you want your business to represent and make sure those principles guide your daily decisions.

2. Build relationships before you need them

We have clients who have worked with us since the business began in 2005. That longevity comes from treating recruitment as a partnership rather than a series of transactions.

Take the time to understand the client and maintain relationships even when you do not have an immediate opportunity for them. This method can apply to non-recruitment industries too.

Generally in business, building a trusted network gives you a much stronger foundation than focusing exclusively on short-term gains and sales.

3. Measure the outcome, not just the transaction

Filling a vacancy might generate revenue, but it does not necessarily mean the assignment has been successful. The real test is whether you have made the right appointment.

That is why we monitor measures such as how many placements remain in post after two years and how often we fill an assignment from the original shortlist.

Every business should identify the measures that reflect the lasting value it creates for customers. Looking beyond immediate outputs can improve your service and help demonstrate the quality of your work.

4. Protect your ability to focus

Following my diagnosis of autism and ADHD in my fifties, I became more conscious of how I work best.

I do not use instant-messaging platforms with constant notifications, and I organise emails by priority rather than trying to answer everything immediately. If somebody needs me urgently, they know to send me a text.

I also prefer to focus on one task at a time. When you interrupt a piece of work to do something else, the effort required to regain your concentration can be enormous.

Leaders do not need to adopt every new platform or be permanently available. Establish clear communication rules that allow you and your team to focus on the work that matters.

5. Learn to let go

In the early days of Holmes Noble, I cared so much about quality that I thought I needed to be involved in everything. That was not sustainable. Delegation has been a learned behaviour. One of my biggest decisions was appointing a CEO so I could step back from the business. It has been difficult, but once you give somebody responsibility, you must allow them to make their own decisions. If you continually step in, you undermine the purpose of the appointment. Founders should put the right people in place, set clear expectations and then give them the space to lead.

6. Build financial resilience before you need it

I have always been relatively risk-averse and committed to keeping Holmes Noble as well funded as possible. That approach helped the company weather both the 2008 financial crisis and the disruption of the Covid years.

Taking risks can create opportunities, but caution also has an important place in business. Maintaining sufficient reserves gives you options when conditions become difficult and helps ensure you can continue meeting commitments such as paying employees.