In Part One, we looked at where you are now and some of the issues that can arise as your recruitment business starts to grow. The business plan that you put together when starting up should be constantly evolving and not relegated to the archive section of your laptop. Get into the habit of revisiting the big picture and reviewing your SWOT analysis – don’t wait for a crisis to happen.
‘Adapt or Die’
What didn’t seem like a threat a month ago now appears on the radar. Likewise, new opportunities on the horizon beckon. It may be ongoing success from one client has snowballed into another potentially lucrative revenue stream for you.
Therefore, in Part two, it’s about delivering a business plan for growth in the face of uncertainty. Not easy. You, the business owner, will need to ensure you have the necessary people, finance and systems in place to achieve this. It may require a different model for business growth. What resources can you call on for support to help you realize your growth ambitions?
It’s important to be strategic about workforce planning. Your business plans should help you focus on what potential talent you need and when. Attracting talent for your recruitment business means starting off as you mean to go on. Many people don’t leave a company – they leave a boss. Would you want to work with you? Having an open mindset is important, otherwise it will be difficult to be receptive to ideas from others. How you behave now will in fact set your company culture – so make sure it’s an inclusive one.
It’s important that your financial partner is a recruitment specialist that can provide a flexible recruitment solution to match your growth expectations.
The capacity to scale up and down is an important consideration. This may impact on the number of contracts that can be taken on at any one time if you run a temporary/contractor agency. Look for a solution that provides 100% recruitment finance, however a worker is paid. Paying your workers on time, every time, is the golden rule.
Similarly, if you are a permanent recruiter, having an advance on invoices within a few days means you don’t have to wait 30+ days to get paid on perm invoices. This frees up funds for growth. Also, look for a USP that can help you stand out from the crowd in the permanent market. Rebate schemes can be effective sales tools that can help you stand out from the competition and give you the capacity to charge a higher price.
Be mindful, some factoring companies may only provide 90% factoring solutions. This means that 10% is always held back – funds that could be used to help grow your business. Having access to your profit without concentration limits is something you should be aiming for.
Are you spending too much time on business administration rather than business development? Consider outsourcing your back-office admin. This will free up your time to focus on revenue generating activities and do what you do best.
However your workers are paid, there are payroll providers who can offer a pay-as-you-go-service. This should help preserve cash flow and save you precious time. Look for a provider who is a recruitment specialist and has the experience of paying a wide variety of workers – whether PAYE, Limited Company, self-employed, Umbrella or CIS. This should also give you peace of mind that they are helping to keep you compliant with HMRC and employment legislation.
Having a robust credit control process in place is essential to help reduce the risk of late payments and aged debt. A healthy cash flow is essential for growth. However, getting the money in can be time consuming. You can save yourself valuable time by outsourcing this as part of an overall back-office support solution. Make sure it’s a company who can take care of invoicing your clients right through to collecting overdue payments.
As we know, all business is not good business. Therefore, an effective credit control system should also be reducing risk through completing due-diligence and credit checks on clients. Don’t forget debt protection too, should the worst happen.
Review the technology you currently use. Avoid multiple systems, where possible, as this can be time consuming. Look for a system which has been designed specifically for recruiters and combines your front and back-office processes. You should be looking at recruitment technology which can make you more efficient, save time and help keep costs down. Do your research and see what recruitment technology solution is closest to your needs and budget.
Enjoy the journey
Taking your recruitment business to the next level can be daunting but you don’t need to sail alone. Remember why you started the business in the first place. Successfully implementing a business plan for growth, whilst staying on top of your finances, is achievable. Just choose your growth partner wisely and enjoy the journey!
Simplicity have been helping thousands of recruitment businesses grow over the past 15 years. Our 100% recruitment finance and back-office support solutions have enabled recruiters to focus on what they do best – grow their businesses. We’d love to support you on your journey too. Please contact one of our recruitment specialists to find out how we can help grow your business or download our brochure today.