Despite being a top biller and having ambitions to start your own recruitment business, there’s a few issues holding you back. You’ve found your niche, know your market and foresee lots of opportunities ahead. However, how do you make these opportunities real? Often, fears about time and cash flow prevent ambitious recruiters from starting up their own recruitment agency.
Myth one: You need deep pockets and a supportive bank manager.
It’s exciting writing about the potential opportunities within your business plan. However, financing your recruitment start-up can seem daunting as it’s a new area for you. How much cash do you actually need to have in the bank and how many contracts could you potentially take on at once?
If everyone relied on traditional financing to fund their recruitment business at the outset, there would be fewer agencies around. Tighter controls over borrowing have meant that traditional lenders are no longer the finance providers of choice for many start-ups. That accolade is increasingly attributed to alternative finance providers. There are recruitment specialists within the alternative finance market who can provide immediate access to cash to pay contractors and have access to funds to scale the business itself.
Looking to launch a temporary or contractor agency?
Simplicity offers a 100% recruitment finance solution that can pay your workers accurately and on time. So, if you win a contract for 100+ workers you won’t have to worry about having enough cash flow to pay them next week. You find the clients and candidates and we pay them and you – your margin every Friday. We’ve even got a Margin calculator which can help you calculate your agency payroll costs and gross margin.
What’s more, our recruitment solution is scalable which means you can grow at a pace that’s comfortable for you. Only pay for what you use when you use it.
Looking to launch a new permanent recruitment agency?
Our 12 Month Rebate Scheme can help you get ahead of the competition. Furthermore, our 100% advance on perm placements mean you don’t have to wait 30+ days to get paid. You get your 100% advance on your perm placements within a few days of raising an invoice.
Also, for peace of mind our Debt Protection comes as standard. And when you are ready to scale up the business, it’s good to know that there is access to multiple insurers and extra insured funding as and when you need it.
Myth 2: You need to be good at everything
You’re a recruitment entrepreneur – not a payroll specialist. You don’t need to be a jack-of-all-trades. One of the biggest frustrations that recruitment business owners report is how much time is taken up by essential but non-billable activities. It doesn’t have to be this way. Simplicity have paid over 1.5 million payslips without fail. Our payroll team can pay your workers on time, every time, however they need to be paid. Our back-office support comes as standard with our recruitment finance solution. That means we can take care of invoicing your clients to retrieving overdue payments, whilst helping to reduce debtors days and improve cash flow for your start-up agency. How much time will that save you?
What’s more, our due diligence checks on clients and debt protection can help reduce risk. Good to know. Overall, it’s all about freeing up your precious time to focus on what you do best – winning clients and candidates and turning your entrepreneurial dreams into reality. However, don’t take our word for it. Read what one of our Partner’s has to say about Simplicity managing all their back-office processes.
Myth 3: You need to invest heavily in the right technology and systems
There is no escaping the fact that technology is essential for recruiters. In fact, it can be a minefield identifying and deciding the systems that will be right for you in the here and now. Also, which recruitment systems can be adapted to meet your future needs without breaking the bank.
Welcome to GEMS recruitment technology
GEMS has been specifically designed for recruiters and comes at no extra cost to Partners. Via a single cloud-based platform, GEMS combines your front and back-office systems. It’s all in one place – from weekly payroll records to online reporting, GEMS can help keep costs down and make you more efficient. Interested? Find out more about our pioneering solution here.
At Simplicity, it’s all about being able to offer an ‘all in one’ recruitment specific solution saving you both time and money. As we have shown here, many of the perceived barriers to start up your own recruitment business no longer exist. As they say, the most important step is just getting started. So, if you are thinking about starting your own recruitment agency in 2020, contact us today or download our guide on how Simplicity can help you get started.