Recruiters considering international expansion should first weigh up whether their offering is sufficiently unique and strong to compete effectively with large players already operating in the target market.

This was the warning from James Caan, chief executive of mid-market private equity firm Hamilton Bradshaw.

From his 25 years of experience in the recruitment sector, Caan offered his advice to senior recruiters at an evening event this week in London hosted by HSBC.

Recruiters should look at what market share they hold in the UK before thinking about expanding abroad. “What makes you think if you can’t do business in Chiswick [that] you can do it in Russia?” Caan argued.

In the UK, he went on to say, solving a business problem may take “two or three phone calls” while elsewhere in the world, resolving the same issue could “cost you tenfold”.

Caan said he didn’t want to dissuade recruiters who were convinced international expansion was the right next step for their businesses “but do it with caution”.