What are the steps in between you and setting up your Recruitment Company?

2022 promises to be another incredible year for the recruitment industry, and the trend of recruiters setting up on their own to capitalise on the booming market is continuing.

It can seem daunting, the prospect of setting up your own company. But it needn’t.

If you are an established recruiter right now, you already have everything you really need in terms of skills to be able to set up your own successful recruitment company.

Here are the only obstacles in your way:

Branding

In order to operate your own company – you’ll need a name, a brand and to get it all registered.

This is not as overwhelming as it may initially seem.

To register your business on Companies House is simple, and you can find great and quick support online for brand and website creation. If you keep things simple, you can have this step sorted in a day.

Office Space

The vast majority of us have proven that working from home is not just possible, but in a lot of cases, preferable to working at the office. However, we are all different and it will be up to you to work out whether you will be able to work at home effectively or whether you’ll need to look for some office space.

If the latter, there are plenty of shared spaces around at reasonable rates to ensure you still surround yourself with the buzz and the banter of the office, and if not, then just making sure you have a dedicated desk at home is all you need to do!

Legal

Sorting out the legal side of your business can be done without too much trouble, and there are plenty of people and organisations that can help.

In essence you’ll need to;

• Liaise with broker for required insurance policies
• Register for VAT with HMRC
• Draft up some terms of business

Financial

One of the biggest obstacles most recruiters believe they have to starting their own business is financial. How much money will you need?

The simple answer to this question is not a lot!

Assuming you have a computer and a mobile phone you can start and run a successful freelance recruitment business without much starting capitol behind you.

The two most important costs of a freelance recruitment agency are;

• The payroll for the temps
• The software to be able to effectively manage the back office of the business.

By its very nature, a freelance focused recruitment business creates a cash flow issue, due to having to wait for your invoices to be paid by your clients whilst having to pay your workers at the same time.

This is the true cost of running a recruitment business and potentially where large debts can start to build up and spell the end of a company before it’s really begun. This is where Quba can come in and provide what you need.

Quba’s invoice finance solutions will not only pay your temps every week, but will also pay you the margin gained, providing an instant income into the business. We provide full back-office services that match, and in many cases beat those of any blue-chip corporate agency, enabling your new business to compete at the highest level without such expenses as offices and staffing, so you can get billing straight away.

There are no signing up fees, minimum monthly fees or start-up costs – our solutions are charged based upon your weekly turnover. As such there is no need for financial investment prior to starting your business.

The only requirement for any cash reserves for a new agency is to cover personal costs (such as your mortgage) whilst the business is building over the first couple of months.

Building a successful temp desk will quickly provide the cashflow needed to cover your personal costs when supported by a funding partner like Quba. For example, placing 5 temps on £10 pay/£15 charge placements would net the business in the region of £450 per week.

If you would like to learn more about how our solution and whether it can provide all of the funding and services you need, you can reach one of our funding professionals any time on 01305 571042 or contact us here.