For many recruiters, who have spent many years employed by an agency, the opportunity set out on your own is an attractive prospect and can result in tremendous benefits for your career, but like any significant career move, it does not come without its challenges.
Of course, when it comes to running your own business, there are countless considerations to take into account that fall far outside of typical recruitment duties, the key to making your own agency a success lies in the balancing of these requirements alongside your core business. So how can you place your new recruitment business in the best possible position to ensure future success?
Maintaining cash flow
Every business relies on cash flow as the key to its survival, for recruiters, particularly those working with temporary placements, maintaining cash flow at all times is vital. This is due to the fact that more often than not, candidates will be paid by an agency on a weekly basis, whilst the agency will invoice the end client once a month.
Both start-up and established recruitment agencies often choose invoice finance as a way to maintain cash flow throughout the month. This allows a company to release funds tied up in an invoice as soon as it has been raised, with a finance company subsequently taking over the chasing for payment from your clients. For those agencies not wanting to reveal to a client that they use a finance facility like this, invoice discounting is a confidential alternative, that works in a very similar way, except for the fact that responsibility to credit control remains with the agency itself.
Back office requirements
Juggling your administrative requirements alongside your core business responsibilities can be tricky, especially if you have no previous experience in carrying out these duties. Administration tasks that you are ultimately responsible for as a business owner will be: credit control, payroll, invoicing, timesheet processing, HMRC requirements (e.g. VAT returns) and much more. Whilst not your core business, these tasks are a necessity and therefore, in order for your business to be a success, they must be taken care of accurately and on time.
Whilst some lucky agencies may have the capacity in-house to take care of these back-office tasks, many recruiters choose to outsource, not only freeing up time but also ensuring that they are taken care of by someone with experience in completing them correctly.
Here at Zodeq, our team has a long history of working within and alongside the recruitment industry, and we have made it our mission to provide the ideal support and finance to recruiters across the UK, to ensure that they thrive.
We offer a number of services that are ideal for both start-up and established recruiters, including our Principal service, invoice finance package and back office support services. If you are looking for the right support for your agency, contact the team at Zodeq today.