You’ve got the skills, the knowledge, the drive and even a strong network of contacts. But without the single most important piece of the puzzle, you may find opening a recruitment business more difficult than expected.
The one thing that stands in the way of most recruitment agency start-ups more than anything else is funding. It’s not as if any entrepreneurs would realistically expect that the cost of setting up a recruitment agency would be zero. Nevertheless, the scope and extent of recruitment funding required never fails to take first-timers by surprise.
From initial start-up costs to payroll obligations to marketing and so on, it’s important to ensure all bases are covered in advance. But what exactly are the options available to those with every intention of opening a recruitment business and making a success of it?
Financing a recruitment business
Perhaps the most attractive type of recruitment finance is the self-financing option. Unfortunately, very few entrepreneurs find themselves in a position where this represents a realistic option. If you already have the required funding available, it’s largely unnecessary to consider alternative funding options. But as this isn’t the case for the vast majority, considering the alternatives is the only way to go.
Start-up loans and grants
There are plenty of privately funded grants and government-backed start-up loans to consider when going into just about any kind of business. The UK Business Funding Centre provides an insightful and regularly updated list of exactly what is available right now and to whom. The only downside with this particular option being that extreme difficulties can be faced along the way – complex bidding, massive competition, proving the viability of your business concept and so on. It’s always worth checking out the various grants and loans available, but obtaining this kind of funding is never quite as easy as expected.
Specialist finance
An increasingly popular option among ambitious entrepreneurs, agencies specialising in recruitment agency start-ups are right now offering the most comprehensive funding packages to date. From initial establishment costs to invoice financing and so on, the financer effectively pays for everything while the recruitment company reimburses them as and when revenues are generated. In addition to the comprehensive nature of the funding available, specialist recruitment finance companies are also able to offer uniquely insightful support and guidance on how to build a successful recruitment company.
Bank loans
Last but not least, bank loans represent what most would consider to be the traditional option. Develop a strong business plan, pitch a winning idea and see if conventional lenders are interested. Which is definitely an option to explore, although securing traditional bank loans as a small business owner can be uniquely challenging. In order to qualify, you’ll need to produce comprehensive and accurate financial forecasts, a meticulously detailed business plan and in-depth contingency plans in the event that your business fails. You’ll also need to have an extremely strong credit rating and the ability to prove your aptitude to succeed in your chosen field.
Each of the above financing options has the potential to help get your new recruitment agency start-up off the ground and primed for success.
This article was brought to you courtesy of the team at Newmillenia.co.uk.
