Cash maybe king but it’s cash flow that rules

a start up recruitment business.

‘Cash is king’, the phrase that first saw the light of day in some very dark times.  It appeared in the 1980s when stock markets were crashing like there was no tomorrow. In fact, for many businesses, there was no tomorrow.

Behind it was the idea that no matter how fluid the markets become, no matter how sophisticated the financial management is, ultimately it’s advisable to have some cash stashed away.

It makes sense. And yet, in the day to day running of a business, cash might be king, but it’s cash flow that rules.

Apply  that to the recruitment sector and it becomes so true that many a potential start up has simply not started, and lots of potential backers have quickly backed off.

The path between identifying a role to be filled and being paid for filling it is a long and steep one. It’s labour intensive. The role has to be advertised, and candidates found. Applications need to be scrutinised. Then there are interviews. Short lists. Second interviews. Probation periods.  And then, eventually, after the role is filled and the final candidate placed, the recruitment consultant, hopefully, gets paid. That’s after the expense of all the aforementioned stages has flowed out of the business. A lot of flowing out before the flowing in.

But you’ll know all of this. As a recruitment professional (and why else would you have read this far?) you know how that works. It’s just that if you’re thinking of starting your own recruitment consultancy it all looks rather more perilous than it does when your employer is carrying the load.

We know all that too. It’s why we’ve developed the business model that’s currently helping set up recruitment businesses all over the uk.

We’re there at the start, providing 100% funding to launch the business, free of all risk. We sort out just about everything you can think of in terms of getting you started. Premises, systems, branding and, crucially, access to our back office and software making you operational and efficient the moment you open your doors.

After that it’s your business, and you run it. You’ll have shares in it, and you’ll draw dividends.

And then there are two more really important things.  Firstly you’ll be able to pay yourself a salary. Trust us – the knowledge that your domestic cash flow is running smoothly is better than a cash bonus. It helps you concentrate on running your business more than you can imagine.

Secondly, we’re there to help your business with invoicing and payroll and credit. We’ll flatten out the peaks and troughs of cash flow so that things run smoothly.  And that’s another load off your mind.

Which means you can get on with the job of growing your business. To the point where you can stash that pile of cash and you’ll rule the cash flow – not the other way round.

If you’ve got five consecutive years experience in the recruitment industry,  ideally three years track record within the same sector, and you’re serious about setting up on your own, Apply Now.

Make every day count.

 

Starting your own recruitment company will make you look at data – differently!

It will make you look at it in two distinct ways. The media are full of reports and opinions on how important data is, and is becoming, to businesses in general, and recruitment companies in particular. Gathering data, and knowing how to do it, is proving vital in building up pictures of companies and candidates, enabling a better fit. It’s another area where technology is being  brought to bear, and it’s bearing fruit. To ignore the importance of data is dangerous.

But, to ignore the legislation that surrounds and protects data is potentially just as perilous. The General Data Protection Act (GDPR) will apply in the uk from May 2018, and any suspicions that it will be halted by BREXIT are long  gone.

If you’re running a recruitment company – or just starting one up – it will affect you. This is legislation that goes to the heart of what information you have about someone, how you use it, and how you store it.

To get into the details for a moment, as a recruitment agency you could be defined as a ‘controller’. That’s someone who  determines how and why personal data is processed. When it is processed it’s deemed to be so by a ‘processor’. It might appear obvious, but this terminology is complex.  For example, despite being a ‘controller’ you could, as a recruitment consultancy, also be deemed a ‘processor’ . If you are, then you’ll find yourself with some extra and stringent rules to abide by regarding the maintenance of personal records.

Frankly it’s enough for a well established consultancy to deal with. For a start up it could be a minefield.

It’s precisely the sort of area that our experts can help you with. At The Recruit Venture Group we specialise in helping recruitment professionals to launch their own businesses.

100% initial funding is just part of the package. You’ll also receive shares and dividends – in your own business –  and access to a complete back office and support system.

You’ll be sufficiently supported to pay yourself a salary from the start, which is a huge relief, and underlines the risk free nature of our package.

And then we go further still. We stay with you. Legal and taxation advice are part of the deal. So too is invoicing and payroll. When it comes to new legislation – like the GDPR – we study it and update you.

It leaves you free to get on with building your business. Safely.

If you’ve got five years unbroken experience in recruitment, and preferably three of them in a specific sector, and you’re serious about starting up on your own, Apply Now.

Let’s look at this – differently!

 

Starting your own recruitment company – M.B.O or O.M.G !

When it comes to starting a recruitment business of your own one possible route is the MBO, or Management Buy Out.Continue reading

Something to consider if you’re thinking of starting up your own recruitment company – Be careful how you service the service sector.

 Appearances matter. You know that. You’re a recruitment consultant.  You know how to dress for visiting clients and you certainly know how to advise candidates to dress for meetings and interviews.

But now there’s a different aspect to consider. And if you’re planning to recruit for the service sector it’s something you really need to be aware of.

Without getting into specific cases suffices it to say that if you’re asked to place a job seeker into the service sector you need to be  aware of any instructions that the client, or employer, might be intending to impose regarding a dress code which could ‘single out specific groups. Taking it a step further you really need to know if the employer is actively seeking, or singling out, a specific type of person – female for example – or ‘young’, or those with ‘particular physical characteristics’.

Making such distinctions are contrary to the Equality Act 2010, but the point is that if you, the recruiter, know about those ‘requirements’ you could be liable under law as much as the employer. And with a list of protected characteristics that includes age, disability, gender reassignment, marriage and civil partnership, pregnancy and maternity, race, religion or belief, sex and sexual orientation there is a real need to be vigilant. In short it’s an offence to help someone else do something discriminatory.

Now add in all the other legislation that’s pertinent to placements, and all the other sectors it could apply to, and you’ve got a job for full time legal and HR departments which probably weren’t on your ‘must have’ let alone ‘can afford’ lists for your new company.

How many new startups in the recruitment sector have that sort of back up and support to call on anyway?  Well there are 42 on our website right now. They’re all recruitment consultancies that have been set up with the backing of The Recruit Venture Group.

Every one of them was launched by a recruitment professional who wanted to go it alone, and came to us because they recognised that we represent the most comprehensive, most risk free, start up solution available.

They all received full financial backing, help with legal and company registration matters and then access to our back office systems and support. Able to pay themselves a salary from the outset each and every one of these entrepreneurs – because in truth that’s what they are – was free to focus on building their brand and growing their business. And they really have grown. The group has a combined sales turnover of in excess of £131 million.

All of those consultancies have grown their own way. The owners own them. They have shares in them, and receive dividends from them.  We don’t get in the way.

But, we don’t go away either. We’re there to provide back up, support and guidance when it’s needed. When it’s asked for. And importantly we’re there to keep  them up to speed with legal and HR advice, especially when it comes to legislation that can really impact the business. In fact we are the legal and HR departments most other recruitment start ups can’t afford.

Sounds like something you’re interested in, let’s talk. We need to know that you have five consecutive years’ experience in the recruitment industry, and ideally three years track record within the same sector. If you’re ready to launch your own recruitment business in the uk, Apply Now

We can help you deliver the service you imagined, without the problems you didn’t.

 

Plan for these key stages within your own recruitment company – Forming. Storming. Norming. Performing.

All good strategies have key stages, or ‘milestones’, embedded in them. It’s a way of breaking the big tasks down into manageable chunks.

Back in 1965 Bruce Tuckman developed a management organisation theory   suggesting that groups of people form by going through the stages of  Forming, Storming, Norming and Performing.

He may not have seen the idea as being directly related to the setting up of a recruitment business but we think it’s extremely relevant. And in our experience it’s still applicable today.

We may be taking a few liberties with the learned Mr Tuckman’s hypothesis but as ‘labels’ to put on the important phases in setting up on your own those words work rather well.

Forming.

You have to start somewhere. And that means, initially, having the will to do it. It means asking yourself if you can do it; go it alone and run your own business. It also means actually setting up the company, and registering it as a legal entity. And of course it means getting the necessary financial backing in place.

Storming.

Ready to make your mark! All fired up and determined to succeed you attack the market with real force. Nothing can stop you now. Well, except perhaps that if you haven’t got the appropriate levels of back office and system support your efforts could crash and burn in an admin meltdown.

Norming.

It  settles down. It’s not that you lose any of your vigor or enthusiasm. It’s more to do with finding your place in the market, establishing your brand’s identity and consolidating your position.

Performing. In theory then this is when you really start to perform. Teething problems soothed, cash flow stabilised and all systems go you can get on with developing your  business and building your future.

It all makes perfect sense. You can see the rhythm of it. But, it’s a lot to do when you’re all on your own.  From those legal discussions to set up a company, to finding the right finance; from having all the systems in place to be able to storm the market effectively, to withstanding the peaks and troughs of early days cash flow; from finding the time to work at building  your brand as well as run the business to  sitting down and planning your future  – it’s a huge amount to do, on your own.

That’s why we do what we do.  At The  Recruit Venture Group our start up solution is designed to help you Form, Storm, Norm and  Perform.

With our full financial backing to launch your business, plus the autonomy that comes with shares and dividends, you can get on with what you do well. With our complete back office and support system you can do it better.  And best of all, you can run your own recruitment business without running a risk.

Able to pay yourself a salary from the outset you’ll have that extra peace of mind that allows you to focus on your business. So if, as a recruitment professional with around five years experience, you feel it’s time to start up your own recruitment business, Apply Now

We’ll be with you at every stage – but it will be your business you’re running.

 

Summer in the UK, so it will rain. That’s life. Ups and downs are to be expected. Some can say, just like starting your own recruitment business.

It’s often been said that the British wouldn’t be able to start a conversation if it wasn’t for the weather. A bit harsh perhaps? Well, our weather is variable to say the least. Although somehow you can rely on it delivering some less than favorable conditions at some point during summer.

That’s life. The ups and down. Sunshine and showers.

That’s business too. And it’s certainly the business of starting your own recruitment agency. There will be some showers to set you back before the sun shines on your new venture.

To take a brisk walk through the rain; you’ll probably encounter the somewhat cloudy vision of a bank manager who can see figures clearly but not always the potential in them. There’s the cold drenching you could get from landlords of premises and providers of fixtures and fittings who are loathe to give credit to a new business. And you could really get your feet wet with I.T. systems that somehow don’t quite fit with recruitment’s demands.

But here comes the sun. At The Recruit Venture Group we specialise in supporting recruitment professionals to start up on their own.  We have funds available to provide 100% financial support to launch you. We have expertise available to guide you through finding premises, registering your business, building your website and getting your marketing on track.

With all of that in place you’ll be able to pay yourself a salary from the outset, which is a huge piece of peace of mind. It lets you concentrate on the business, knowing your bills will be paid.

And then comes the rainbow. We support you with a full back office organisation. You have access to our systems for your invoicing, administration and, most importantly, client and candidate management. It means you’re operational, competitive – and secure.

All of that together means that you’re prepared for even the rainiest of days. You’ll have a place to trade from, sound finances, safe systems and a say in your own future.

We like to know who we’re sharing our umbrella with, so Apply Now. We typically look for five years relevant, unbroken, experience and a demonstrable track record in a particular sector.

Starting your own recruitment business will always have a few rainy days. But launching with our help gives you a much better forecast.

 

The last 10% it takes to launch your own recruitment company can take as much energy as the first 90%

That would be true if you applied the theory put forward by Rob Kalin. What he actually said, because he was speaking in more general terms, was ‘The last 10% it takes to launch something takes as much energy as the first 90%’.

As the co-founder of ETSY and a serious entrepreneur he’s not one to be ignored but, when it comes to launching your own recruitment company it’s possible that the percentages need adjusting.

For example, working as a recruitment consultant, maybe running a desk, and thinking about starting up on your own, all happens over a long time. You need the experience to get to know the industry. Only then will you know that it’s really ‘for you’.

Balance life as an employee against being the boss.

Next comes the planning period. Those weekends and evenings spent thinking it through, balancing life as an employee against being the boss. The calculations need to be done – could you afford to do it; could you maintain anything approaching your current lifestyle?

Discussions with the family and the bank manager

Inevitably, and rightly, there will be the discussions with your family. And of course there will be, even if they are the first tentative ones, the discussions with the bank manager.

And then there’s the business of your ‘escape’. Examining your contract to make sure of what you can and can’t do; thinking through the timing so that you have as many ducks in a row as you can before you put feet in the water.

All of that adds up to a lot of time, and energy.

Suppose though that having expended all that energy, and done all that planning, the next stage, the actual getting launched stage, was much quicker, and a lot simpler.

Suppose you put your plan to us at The Recruit Venture Group. We would look over your proposal, determine that you had indeed notched up five years in the recruitment business, and that you were serious about doing this. Tick all of those boxes and we would move very quickly. We’d provide 100% funding to get you launched. We’d guide you through registering your brand, finding your premises and building your website.  We’d give you access to our back office systems and support. You’d have a line of credit to ensure the cash flow really flowed.

And, because you’d be so well supported and financed you’d be able to pay yourself a salary from day one, which would maintain your lifestyle and give you the peace of mind you need to focus on building your business.

Now, given all that  you’d put in beforehand, it sounds like the last 10% of launching your own recruitment company is, with our help, not going to take as much of your energy as that first 90%.

If you’re 90% there already, apply now, we’d like to hear from you.

Let’s save you some energy!