You’ve got the experience and you’ve decided to go for it — you’re starting your own recruitment agency!
However your first stumbling block might be exactly how are you going to find the funds to get going.
Do Your Research
You need to do your research to understand what costs you need to budget for.
Often in these situations there are costs that you might not even have thought of, but everything needs to be considered so you can make the most informed financial decision.
We’ve written an insightful article breaking down just how much it costs to start your own recruitment agency which can be a great place to start.
Take a Look at Your Personal Finances
Before you do anything take a look at your own personal finances and how they’re going to be hit by the costs of starting your own business.
You may have savings from your time in employment that you’re planning to use, however you do need to consider how quickly they could be swallowed up.
Running a credit check on yourself can be a good start, so you know your position if you need to contact your bank for funding.
Explore Start Up Loans and Grants
There are many different organisations out there that offer loans and grants to people starting their own business.
As long as you can prove your track record and have a clear plan for how you’ll develop and grow your business, you may be able to access some funds.
Take a look on the gov.uk website for a list of finance and business support schemes for you to explore.
Ask Friends and Family
One approach that some people take is to ask friends or family to invest in the business by offering funds for the startup.
The benefit of course is that you can get quick access to the funds, and not have to go through the hoop-jumping that you experience when trying to access a bank loan.
However this can be a tricky strategy and can impact on personal relationships, particularly if you’re asking for a loan that you somehow find yourself unable to pay back.
Take a Bank Loan
Your first thought for accessing funding for your recruitment agency might be to apply for a loan from your bank.
Most banks will offer loans to startup businesses, yet they will expect a proven track record and a personal guarantee.
As a startup recruitment agency it can be extremely difficult to demonstrate a track record of success, plus it puts the pressure of starting your own business on someone else’s finances if you use a personal guarantee.
Apply for Specialist Recruitment Finance
One approach you might not have considered is specialist recruitment finance.
Here at New Millennia we specialise in providing funding for startup recruitment agencies.
Our bespoke offering provides support that your startup recruitment agency requires, leaving you free to offer the highest quality service to your clients and candidates.
You only need three things to access funding:
- Obtain credit against your client
- Get the relevant terms signed
- Have a signed timesheet
To find out more about how New Millennia could help you get your business started, then get in touch with our team.