Maintaining a healthy financial status for your recruitment agency can be highly challenging enough, never mind giving it a boost. There are certain ways of doing this however, and you may pick up some useful pieces of advice and information from this article.
If the chance for business growth and development comes your way, and you need to utilise a business loan to take advantage of it, you will need to ensure you are in the right position to be able to do so. The recruitment industry is a highly competitive area of business, so gaining the upper hand on your competitors is always a wise move to make.
By reading on you will discover the numerous ways in which you can boost the financial status of your recruitment agency.
Make sure people pay on time
First and foremost, you need your customers to be paying on time. Without receiving timely payments, your business will undergo financial struggles that are tough to handle, especially in the earlier stages.
You may first believe this is completely out of your control, but it is not. There are multiple strategies you can pursue to start making sure people pay you on time. If you have provided the service you promised, then you should receive the payment you have demanded.
A good way of doing this is to set the rules of your agreement out clearly in the terms and conditions whenever you make a deal with a customer or client. You can also make sure it is easy to pay you by offering multiple payment methods, including direct debit, bank transfers and more.
Consider using an accounting service
Of course, you can save on costs by doing your accounting work all alone, but this can often prove to be too much for a new entrepreneur, especially on top of everything else. Even if you make the slightest of errors, or a delayed payment, you could end up paying more than you’d ever planned to.
To avoid these issues, consider using an accounting service to perform these duties on your behalf.
Cut costs where you can
Minimising expenses is a suggestion we generally offer new agencies, but the exhortation truly applies to organisations at all levels.
Investigating your business expenses can often be an enlightening experience. This is because you may be paying for things you don’t even use, such as service subscriptions you’d forgotten all about.
Audit each cost you incur each month and conclude whether it you really need to be paying for it. If not, cut the cost out and save your business the spare funding instead.
Separate business finances from your personal cash
Business and personal finances should remain separate from one another. There is never any exception to this rule, and you should stick by it no matter what. As you work as a sole trader, operating your own recruitment agency, you may find yourself tempted to utilise your personal account for business-related transactions.
If you go down this path you will soon discover that things become rather complicated and prove to be much more difficult. You will likely struggle to keep a watchful eye on your incomings and outgoings every month. Avoid this needless complication at all costs and maintain the distance between your business finances and your personal finances.
Increase your fees
That’s correct, you have the power to increase the pricing of your recruitment agency. If you believe a price increase is valid, and you can explain this point effectively to your customer base, then you should go for it.
Perhaps you are concerned about how to tell clients about an upcoming fee increase, or possibly you are worried that it will force them away and into the hands of your competitors. These thoughts are very common among small business owners who are looking to change the price of their services, though the truth is that this is business.
Most people will be rather understanding of a price increase, but only if it is communicated by the business to the consumer in the correct manner.
Cash flow is king
Having cash streaming smoothly into your business will give you the certainty you truly need to carry on, even if you end up receiving an unexpected charge out of nowhere.
There are various methodologies you can execute to improve the cash flow of your business venture. These include offering incentives to attract early payment from customers and clients, as well as enforcing late fees for those that fail to pay on time. You should not simply have to sit back and take it when people refuse to make timely payments.
Always have an eye on your proceedings
You should ensure that you always remain aware of your financial status. Losing track of how you are performing financially can prove to be a very costly mistake for any business venture. By putting targets into place, both monthly and yearly, you will easily be able to view how you are performing, and whether you are staying in line with your expectations or not.
Analysing how you’re stacking up against your targets each month is a great way to discover what changes need to be made, or where your team should be praised for good performance. This way, if you have a bad month, you can look to previous better months to find inspiration and keep your spirits high.
This also means that when financial changes happen, such as occasional inevitable downfalls, you are able to act quickly and protect your agency.
Investigate recruitment finance
Recruitment Finance is a useful financing tool for recruitment agency businesses whose growth is hampered by slow or late payment of invoices. If your business venture has large outgoings for things such as staff wages, this funding solution is likely a perfect fit for you.
As a specialist broker in business funding, we are sure we can find a facility that works for you and your venture. To apply for recruitment finance simply complete the online enquiry. If you would rather receive a call back, please feel free to get in touch on the following telephone number: 01246 233108.