Yes to both. Because it is a lucrative business, there is a lot of competition. There are very few barriers to entry in the staffing/recruiting space (cash flow being one if you are focused on contract placements as you'll need free cash to support payroll). You need to be prepared to stick it out for the long term. Time is your friend here, because most recruiters and sales reps (those building and cultivating relationships with clients) come and go. The relationships you can scrape together in your first year will serve you well if you are still in business in years 2, 3 and beyond - because you'll still be around, where many of your competitors will have moved on (not necessarily the agencies they worked for, but as owners of the relationship, they take that asset with them when they leave). Good to hear you are focused on technical staffing - stay in your lane, figure out what the core in-demand skills are in your market (likely software engineering like everywhere else), and focus on direct hire placement initially to get some early traction and cash in the bank. Then, when the time is right, hire a business development/sales professional and get them out in the field meeting with hiring managers from growing companies in your market. Track their activity and incentivize them to generate contract business, so you can start building up a book of business. Good luck!