So, you’ve made the decision to start your own recruitment business? Congratulations!
One of the biggest worries that we find entrepreneurs have is how to finance their business and, whilst we can help you right from the beginning, we wanted to give you some top tips on what to plan for with your finances.
Develop your business plan
Put together a convincing business plan with:
- Realistic expectations and forecasting
- Short and long-term goals
- Niche markets or target
- Growth plans (you can read our blog here)
Set your budgets
Draw up a business budget based on your business plan. Things to include are:
- Forecasts of sales and expenditure and what you expect your financial position to be each month and each quarter
- Work out your business’s capital costs such as equipment, technology, and bills
- Be realistic and work out who you can approach and if your current employment may affect that initially. Do you need to look for new markets?
Add a safety net
Work out how much financing and capital you need and when you will need it:
- Don’t expect sales to come in straight away and work out how this will be affected by payment terms
- Identify the key risks and how much extra funding you might need if things go wrong.
- Plan for best and worst-case scenarios – have a contingency plan in place for those more difficult periods
- Look at how you can cut initial costs – could you work from home or a shared workspace?
Discover your financing options
There are several different options available to help with your business turnover. WeDo Finance offers support to start-up recruitment businesses just like yours.
Start-up funding
We can help you to get started with a 100% risk-free funding option with our bespoke support for start up recruitment companies.
You started your business because you have the important things – knowledge, networks, drive and determination. We can cover everything else, from software to payroll – and even give you some working capital to help you get started. For either a stake in the business or a straightforward and transparent agreed fee, we can arrange funding to kickstart your company.
Invoice finance
Cashflow issues can cause problems for small businesses. With invoice finance, you can future-proof by raising capital against your unpaid invoices
Invoice finance is a way for a business to release money against the amounts due from its customers.
When you invoice your client, send us a copy of the invoice. Within a short period of time (usually hours!) we will send you up to 90% of the invoice total. Then, we verify the invoice and terms with your client and wait 30-90 days for payment. Eventually, when your client pays us, we send you the 10% balanced owed, minus a small pre-agreed percentage for the service. We can even help with chasing your overdue invoices.