When you are setting up your own recruitment business, budgeting will be right at the top of your agenda. But even when you’ve made your financial plan as solid as possible, there might still be areas in which your business might be able to save some extra cash.
1. Basic business costs
Starting a new business can be a bit of a challenging time and to cut initial costs, you are maybe working from home to get yourself set up. There are many things you can do to make this set up work for you. Although you will have to notify your local authority about business rates and inform both your mortgage and insurance company about a change in circumstances, you are likely going to be able to claim some of your costs back through your tax return. It’s also worth making sure that you are currently getting the best possible deal for your utilities, as you will be using them a lot more.
When you get to the point where you will have to hire additional staff, it can be a little demotivating to realise that they are perhaps not quite as driven as you are. To keep your staff motivated and engaged, and to attract the best talent, you should make sure to provide good incentives for them to work for a small business, rather than a more established one. These can include flexibility and clear career development, benefit partner scheme or even the possibility to purchase company shares.
Your new business wouldn’t be the first to go bust if you can’t get your clients to pay their invoices in time. You should make sure to clearly state your payment terms in any contract, and make clients aware of these. It will be worth exploring funding options and providers as soon as possible to ensure you have the essential funds in place.
Running a new recruitment business, you should recognise the skills you have and the ones you lack. Being completely self-sufficient is not a sustainable plan for any small business. If you realise which areas you need some help in, you can concentrate on the core values of your business without sacrificing its effective running and save money at the same time.
5. The right tools
You are only as good as your tools. Having the right equipment and software can help you save a lot of time, money and frustration. WorkFlo: Software will help you manage your temporary recruitment agency effectively. The cloud based software can help streamline your administration – looking after bookings and timesheets, as well as the management of invoicing and compliance. The latter is particularly important, because the rules and regulations regarding temporary workforces are known to change often.
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