but not at the risk of your bricks and mortar.
Starting up your own recruitment business will need sound financial foundations. Like any business, it will need capital to fund its launch and set up, and sufficient resources to withstand the cash flow pressures of the early days when, typically, the outgoings are greater than the initial income.
How do entrepreneurs raise money for start ups?
A survey by The British Chambers of Commerce has shown that borrowing from the bank is still the default position. Up to 70% of people going into business approach their local bank for finance.
The conditions applied by the banks are stringent. A sound business plan, a good credit score, a firm valuation of the business, or its potential, are all required. The terms, interest and charges, can be steep, even in these days of a low bank rate. All of that is perhaps understandably cautious. But, their caution goes a stage further.
You won’t get it all from the bank.
Even a really helpful bank manager will probably lend a start up around 60%, maximum, of the funds required. And that’s when the business is an existing one, being bought as a going concern. For a brand new start up the conditions could be tougher still. All of which means you’ll need to find around 40% of the capital yourself.
Many business ‘self help’ books and websites will suggest ‘friends and family’ as a possible source, but in reality that’s not always practical. The fact is though that wherever you source that money from – possibly in another, and more expensive, arrangement with the bank – you’ll need security. And that, very often, means your home.
It’s a worry – when you least need it!
It’s not a great place to be in when you’re starting a new business. Saddled with borrowing and repayments, on top of your existing mortgage and bills, you can soon find yourself in a downward spiral. Worrying about making the repayments for both the domestic and business costs your attention is diverted from the business, which then, inevitably, suffers. It then makes less money, because you’re not focussed on it, which causes more worry.
And the last thing you want to worry about – although it can soon become the first thing on your mind – is losing your home. Because that was the security you put against the loan to finance the business. It’s a vicious circle.
Build your business without risking your home.
At The Recruit Venture Group we look at things differently. Firstly, unlike most bank managers, we specialise in the recruitment business. We understand its pressures and demands. The cash flow demands that your bank manager sees as obstacles, we see as short term problems that will be overcome with a growing customer base.
We also see the need for funding that allows you to operate with focus, and freedom from worry.
100% risk free funding is available for recruitment start ups. From us.
We have amassed the capital and reserves to provide 100% risk free funding to help recruitment professionals start up on their own. We also provide access to our back office systems, which is something that your bank manager could not provide, but you will need.
We’re there to mentor you too. We know about recruitment, which again, your bank manager probably doesn’t.
And most importantly? Funding from us is not secured against your house.
With freedom from risk, the ability to pay yourself a salary and our committed back up and support you will be able to focus on building your business. And that way, you’ll grow your business.
Do we have conditions?
The short answer is yes. We need to know that you have around five years continuous recruitment experience, and it would be good to know that you’ve headed up a team, or run a desk. Specialist knowledge of a particular sector would be helpful.