An Englishman’s home is his castle – so why risk it to start a recruitment business

Starting a small business is full of personal risk, particularly when the boss is relying on the value of their home to keep it afloat.

The Sunday Times reported this month that nearly half of borrowing by the UK’s small and medium-sized enterprises is backed the business owner’s own property.

That makes such businesses horribly exposed to house price changes and relying on a property to be a never-ending cash machine is, in my view, simply madness.

Starting and running a business is a huge financial gamble, which often puts personal property on the line. It’s no wonder many are put off.

There are many talented recruiters out there who are perfectly suited to making the leap to launching their own start-up, but feel unable to because they have a mortgage, are married with children or are simply not prepared to risk things like their beloved home in order to make it happen.

That’s perfectly understandable, and it’s precisely for reasons like this that The Recruit Venture Group exists in the first place. If we meet a driven, successful recruiter, already in the industry and wanting to break free and forge their own business future, we will put up 100% of the finance to make it happen through our unique joint venture model.

No ifs, no buts – if we like the business plan, we make the cash available. That person doesn’t have to even think about remortgaging the house, living month to month off credit cards, or going cap in hand to lenders who will have them over a barrel.

Not only can they embark on their business journey without the stress and hassle of raising finance, but we also take care of all of the costly and time-consuming back office functions like HR, IT, payroll, accountancy, marketing and legal services. Believe me, that’s another huge saving given the cost to contract in some of those services. Again, this is all about liberating talented recruiters to go out into the marketplace and do what they do best from day one to make their business thrive.

The Sunday Times report also found that company directors own housing property worth £1.5 trillion. Lending against these assets is a ready source of finance, particularly for small businesses. But a 10% fall in house prices would wipe off £4.5 billion in annual business investment, seriously impacting small and medium-sized enterprises.

The Recruit Venture Group is working in partnership with 43 recruitment businesses right now, and not one of them would need to gamble on a house price rise if they wanted to invest to expand their business.

If a business owner we support has, for example, a sound plan to open a series of new offices, The Recruit Venture Group can make the money available to enable that expansion. While another small business owner might have the stress of borrowing against their house to make it happen, our partners are given the cash and allowed to get on with it, hassle free.

The business world can be unforgiving, and small business owners have more challenges than most when it comes to surviving. Fundamental to the success of any start-up is knowing how to reduce risk. That may sound counter to what entrepreneurship is all about – risk taking – but new businesses are only as strong as their financial backing at the time. And nobody can convince me that a business model reliant on annual house price gains is a good way to foster start-up growth.

Luckily for talented recruiters, there is another way, which not only allows recruiters to forget about risking their homes, but also offers the full suite of back office support that will allow them to focus on making their new business a success.

An Englishman’s home might be his castle, but it shouldn’t be relied upon to be the company cash machine as well.

 

 

What Recruiters can learn from the final of Britain’s Got Talent 2018

Comedian ‘Lost Voice Guy’, who has cerebral palsy and does his stand-up act with the help of a voice synthesiser, took the prize ahead of fellow comic Robert White, who himself has Asperger’s syndrome.

What makes Britain’s Got Talent so compelling is the personal stories. Those people whose talents have hitherto been undiscovered or underappreciated and are finally allowed to blossom. Whether it’s Susan Boyle, whose astonishing voice was given the chance to shine, or, as with the 2018 winner, a stand-up comedian who was not able to speak unaided. It’s the human stories of seeing potential unlocked that really inspires.

 

While Britain’s Got Talent only happens once a year, what is clear is that there will be many out there whose abilities are not being fulfilled. Recruitment is no different.

The Recruit Venture Group is founded on the fact that there are many talented recruiters who have the drive and talent to run their own businesses. Paul Mizen, its Managing Director, has often said that there must be many bright and driven salaried workers in the sector who are put off from taking their abilities to the next level because of the risks of going it alone.

Whether it’s the money it takes to get a business off the ground, the fact that they can’t afford to go into debt, or they fear that the sheer weight administrative burden will be a distraction, they don’t go through with it.

The Recruit Venture Group understands this, and that’s why its unique model is ideally suited to those very recruiters who could make the leap, if it was not for the risks involved.

First, The Recruit Venture Group puts up 100% of the finance to get started, so there’s no sweet-talking of money lenders required, or having to put personal finances on the line.

Secondly, The Recruit Venture Group takes care of all of the back office functions needed to launch and run the business. That includes the administration of establishing the business as well as ongoing functions like accounts, payroll, IT, legal, marketing, HR and more.

So, to use a BGT reference, The Recruit Venture Group sets the stage for those talented recruiters to show what they do best – building networks of clients and filling vacancies with quality candidates. These new entrepreneurs will be leading from the front, shaping strategy, directing business culture and values and setting ambitious targets for growth and expansion.

Not only that, but they get to see more of the wealth that their good work is generating, rather than being stuck on a monthly salary, or fixed commission, no matter how good a month they’ve had.

So far, The Recruit Venture Group has helped launch 43 such businesses and one of the most common phrases given by those recruiters who have made the leap is: “I wish I had done it sooner”.

Paul Mizen, Managing Director, said: “Starting your own business is often the pinnacle of any career. Once you are off and running, there really are no limits – you are free to go as far as your talents will take you.”

“This is tremendously liberating, and rewarding, and its personally so satisfying to see people’s abilities fully unlocked by these ventures.”

It can take as little as 3-6 months from initial contact to starting a new business, and The Recruit Venture Group can manage getting it up and running, from conception through to opening.

The Recruit Venture Group makes the journey from salaried worker to business owner simple. When the curtain goes up on that first day of trading, it’s then time to hit the stage and showcase that recruitment talent.