It’s a different take on cash flow. In a new business the problem is that there’s often more ‘take’ than ‘give’.
Those early days can be a worry, with bills and salaries going out, before income come in. In essence that’s the definition of cash flow. It comes in, it goes out, and if the business is run properly there’s some left over.
But actually there’s another problem sometimes and, ironically, it’s often created by the very enthusiasm and zeal that drove the recruitment professional and new entrepreneur to start up in the first place.
Let’s paint a familiar picture. A seasoned recruitment consultant is frustrated by the job. Running his or her own desk the consultant is effectively running a business of their own anyway. But without the rewards. Ambitious and full of ideas on how to create the best consultancy the area has ever known they decide to do it. They leave – to go solo. Maybe it’s a bedroom start up. Maybe it’s a bit more substantial. Maybe the plan was to take an office but somehow those clients that were supposed to leap across to the new business didn’t do it, because there were some contracts that got overlooked in the excitement, and then there were those clauses in the consultant’s contract that were similarly overlooked but come the day revealed that there were rather a lot of restrictions on just what he or she was allowed to do. So suddenly it is a bedroom recruiter business. Lots of potential. But smaller. Not quite the original dream.
Either way, or perhaps after breaking out of the bedroom, the business needs finance and, somehow or other, a loan or an overdraft got sorted out and now the aforementioned recruitment consultant is the boss, and there’s some money in the bank. Right now. Not thirty days after invoices went out. It’s there now.
It’s brilliant! No longer constrained by internal requisitions, or the stern face of the Finance Director, our new boss can do whatever they want. It’s their business after all.
New furniture? New signage? Total rebuild of the website, because let’s face it the current one is only that downloaded template put together to get something up there. Or, wait, a new car? It’s important. No really it is. It’s the face of the business when visiting clients. It says something about the business. Really.
The point is, and perhaps those predictions are a little harsh (then again, are they?) that the excitement of running your own business, having the very autonomy you craved, can make you spend too fast and too soon.
Suddenly the cycle of ‘place the candidate, send the invoice, thirty days later get paid’ isn’t the cause of the cash flow dilemma. You are.
We’ve got a different take on that.
At the Recruit Venture Group we provide 100% risk free funding, shares in, and dividends from, your own company and full access to our back office and systems. We guide you through the legalities of setting up your own business, help with branding and websites and provide even an invoicing service.
Supported to that extent you’re able to pay yourself a salary, and benefit from that stability and peace of mind.
It will be your business, but as one of our ever growing number of joint venture partners you get the best of both worlds. Autonomy for sure. But a watching eye, a friendly mentor too. We won’t pour cold water on your enthusiasm, but we’re there to ensure you don’t let the company credit card get overheated either.
In truth, after we’ve set you up as a company, sorted the legalities, arranged premises and covered the website and marketing you shouldn’t need to buy much before the first income arrives anyway. But we’re there. Just in case.