Paul Strouts has run a business of four people.
His first business, James Harvard, quickly grew beyond 100 people and sold to Hays for approximately £20 million at 32.
He then spent a decade running Hays Life Sciences globally. Got headhunted to PE Backed Acacium and quickly made two strategic acquisitions.
He now runs:
3 brands.
250 people.
12 countries.
Contingent, SOW, RPO and Solutions revenue
Predicted £45 million GM in 2026.
£12 million EBITDA target.
He has seen every stage of headcount growth. The good version and the expensive version.
This week on The RAG Podcast, Paul Strouts gives the most direct answer we have had on this show about when headcount creates value and when it just creates cost.
We cover:
- The first question Paul asks any founder who wants to grow from 5 to 20 people
- Why you need a minimum of £500K to grow headcount properly, and what happens if you don't have it
- When headcount genuinely creates value in a recruitment business, and when it becomes a cost
- The ceiling Paul believes exists in life sciences, and why going beyond it risks diluting everything you built
- How Acacium Life Sciences grew from 160 people to a £45 million GM operation through two targeted acquisitions
- Why Paul sold James Harvard to Hays three years ahead of plan, and whether it was the right call
- What working inside a global corporate taught Paul that founding a business never could
- Why AI will not kill specialist boutique recruitment, but will change the lower end of the market permanently
Growing headcount is not the right move for every recruitment business. Paul is the first to say that. But if you are building a people-based business and you want to know exactly what it takes to do it properly, what it costs, when to bring in outside funding, and where the ceiling actually is, this is the episode.
If you've ever wondered when headcount creates value and when it becomes a cost... this episode has the answer.
-------------------------------------------------------------
__________________________________________
Episode Sponsor: Remote Recruitment
Hiring shouldn’t be slow, stressful, or expensive. That’s why there’s Remote Recruitment — the smart hiring partner for modern businesses.
They don’t just help you find great people. They help you access elite South African talent that’s ready to deliver. No PAYE. No NI. No bloated overheads. Just trained, remote professionals who integrate seamlessly into your team.
Their process handles everything: sourcing, shortlisting, onboarding, and retention. Fully managed. Fully supported. Fully remote.
And now, Remote Recruitments has entered a new chapter. From ops to admin, sales to strategy, we’re helping businesses scale smarter with people they trust, at a cost they can afford.
Clients have seen:
* Up to **60% productivity boosts**
* **300% ROI** on BD roles
* **30% faster completion** of operational tasks
No overhead burden. No talent shortage panic. Just growth-focused hiring that makes business sense.
Remote Recruitment is your flexible hiring solution for the modern era.
**RAG Listeners:** Get 5% off your first hire + a free strategy session at www.remoterecruitment.co.uk/rag
-------------------------------------------------------------
Episode Sponsor: Hoxo
Every recruitment founder is investing in LinkedIn.
Spending thousands on Recruiter licences. Building connections. Posting content. Sending outreach.
But here's the problem. AI has turned all of that into a commodity. The same templated messages. The same AI-written posts. The same automated outreach landing in the same inboxes.
When everyone sounds the same, the market stops listening.
The recruiters winning right now are not the ones shouting the loudest. They are the ones the market actually trusts.
That's what we build at Hoxo. We help recruitment founders become the most influential name in their niche. A niche audience that knows you, respects you, and comes to you when they need someone in your market.
We use AI to multiply your output. Faster content, smarter research, better engagement. But trust is the product, and trust cannot be automated.
Our clients are turning their existing networks into £100K to £300K in new billings within months. Not through volume. By becoming the recruiter their market comes to first.
To show you how it works, we've made a short training video exclusively for RAG listeners.
In less than 10 minutes, you'll learn why most recruiters are getting zero measurable ROI from LinkedIn, how small, niche teams build the kind of trust that generates consistent inbound, and how to turn LinkedIn from a commodity channel into your most profitable one.
Fill in the form today to see how this could become your agency's most profitable channel: https://hubs.ly/Q03lBpYC0
