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Everything you Need to Know to Fund your New Recruitment Business

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Over 4,000 new recruitment businesses opened their doors for the first time in the UK last year, according to figures recently released by Companies House. This would seem to prove, as if any proof was needed, that the recruitment sector is not only enjoying a period of growth, it is relatively booming.

But while confidence may be high, that doesn’t mean that all would-be recruitment entrepreneurs should take the leap from the relative safety of working for someone else to going it alone. You may be a great recruiter, but getting started as a great recruitment business owner is an entirely different matter.

Figures published in The Times suggested that 1 in 3 (40%) of all businesses – recruitment included – fail in their first year, and half fail in their second year. Why? Because they underestimate the amount of money any start-up requires. Without adequate funding recruitment owners can very quickly find themselves struggling to invest in their business, pay their workers or even themselves. At best growth will be heavily restricted, at worst the business may even go under.

SOURCE: linkedin.com

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Never switches off. Dubbed as Mr Innovation by colleagues and industry, in 1987 David Thornhill first started out in the recruitment industry as a payroll clerk for a local firm in Gloucestershire, Staff UK. David went onto write the first ever software model of its kind for the temp recruitment market, integrating payroll, invoicing, sales ledger, funding and comprehensive management reporting; in essence creating a completely new funding supplier sector.

Prior to the Cash Simply venture he also worked as a board director for another recruitment company, where David used his extensive operational, accountancy and IT skills, to streamline processes and grow the business through increased cash flow and cost savings.

In April 2004, David aka “Mr Innovation” and Tom Atkinson joined forces to launch and begin trading under the brand name Cash Simply, which marked the start of a company based on a similar model to those they had previously developed to great success. They have progressed from a standing start to an annual turnover of more than £45 million, and have built an operational base that could double or treble that volume.

When he’s not dreaming up his next business venture, David enjoys running, attending music festivals and doing the occasional charity skydive. His next challenge is to complete a marathon.

 

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