Although you may already have years of experience in the recruitment industry and you have the talent and connections that motivate you to start your own staffing agency, there may be one important thing that can be stopping you: financial funding.
Regardless of the size you want your start-up recruitment business to be, you will need money to run your venture. Even if you will just be working with another employee, you will still have to worry about your staff’s salary, office lease, utilities, and necessary supplies, etc. For all of these, you will need money.
Funding Solutions For New Recruitment Firms
For individuals interested in opening their staffing agencies but have worries or problems with their finances, below are the usual recruitment startup company funding options to choose from:
1. Bank funding
A bank is the first institution businesses go to for their funding needs. Such establishments are able to give small business loans and even good financial advice, too. You can choose to work with your current bank or another one but experts say that it may be easier for you to secure the funds if you already have a relationship with your bank manager. The primary benefit of using a bank for funding is that you agree on the repayment terms up front and it is non-negotiable. As such, if you agree to a loan with a certain fixed interest rate and your recruitment agency becomes really successful, you will still pay the same amount.
Regardless of the size you want your start-up recruitment business to be, you will need money to run your venture. Even if you will just be working with another employee, you will still have to worry about your staff’s salary, office lease, utilities, and necessary supplies, etc. For all of these, you will need money.
Funding Solutions For New Recruitment Firms
For individuals interested in opening their staffing agencies but have worries or problems with their finances, below are the usual recruitment startup company funding options to choose from:
1. Bank funding
A bank is the first institution businesses go to for their funding needs. Such establishments are able to give small business loans and even good financial advice, too. You can choose to work with your current bank or another one but experts say that it may be easier for you to secure the funds if you already have a relationship with your bank manager. The primary benefit of using a bank for funding is that you agree on the repayment terms up front and it is non-negotiable. As such, if you agree to a loan with a certain fixed interest rate and your recruitment agency becomes really successful, you will still pay the same amount.
2. Investor funding
Gaining funding from an investor, whether it is a venture capitalist or a silent partner, will really work to your advantage. You stand to get some excellent commercial advice, financial support, and even a list of networking contacts. However, think carefully before going with this option; this is because if your business does very well financially, your investor will take a chunk of your profits if you agreed on the percentage of ownership terms rather than simply paying them back with interest. This may seem like a good idea at the beginning but it can end up costing you far more.
3. Funding from family and friends.
Lastly, although it can be tempting to ask your family and friends for financial support for your start-up company, keep in mind that this is an option fraught with difficulties. What could happen is that you ask your family if they can afford to help you set up your business and they will say yes when they really mean no. And even if they do have the money to share or lend you, they may make judgements as to how you are spending the money.
Source:
http://wearessg.com/setting-up-a-recruitment-business offers more details regarding recruitment start-up company funding.
Gaining funding from an investor, whether it is a venture capitalist or a silent partner, will really work to your advantage. You stand to get some excellent commercial advice, financial support, and even a list of networking contacts. However, think carefully before going with this option; this is because if your business does very well financially, your investor will take a chunk of your profits if you agreed on the percentage of ownership terms rather than simply paying them back with interest. This may seem like a good idea at the beginning but it can end up costing you far more.
3. Funding from family and friends.
Lastly, although it can be tempting to ask your family and friends for financial support for your start-up company, keep in mind that this is an option fraught with difficulties. What could happen is that you ask your family if they can afford to help you set up your business and they will say yes when they really mean no. And even if they do have the money to share or lend you, they may make judgements as to how you are spending the money.
Source:
http://wearessg.com/setting-up-a-recruitment-business offers more details regarding recruitment start-up company funding.
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