A start up recruitment business plan is very much a document to demonstrate to others the path of your future business. It doesn’t need to be overly complicated, long or outlandish, just concise and professional. Think of it as a blueprint to build your business on.
It should probably include some of the following but not limited to:
· Your market and competitors
· Sales Forecast
This section would normally contain the services you are planning to offer. A description of the business functions i.e. permanent, temporary, contract, executive search, etc. and what sectors you plan to cover. Will it just be you or will there be more than one person involved from the start? Also – what are your USP’s? Are you niche in a particular marketplace as you have experience within a sector or do you plan on generalising? Why are your clients going to be using you rather than your competitors? Recruitment is not complicated but demonstrate here your knowledge of relevant legislation and your obligations.
Market and Competitors
So who do you plan on hitting up? Mostly, this will be a particular sector that you have worked with in the past, where your knowledge and experience lie. What’s the opportunity – how large is the market sector, is it growing or declining? Talk about trends in recruitment in your sector or area – what is happening and what is predicted. It’s also key to have a good understanding of your competitors and exhibit it in the business plan. It demonstrates you’ve done your market research that your pricing will be competitive and that there is an opportunity for your new recruitment business and that you fully understand the sector you’ll be working in.
It should relatively be easy to write a sales forecast, it needs to be realistic and one that demonstrates the minimum you think you’ll bill. That is important as its key not run out of cash a few months in. Whilst invoice factoring firms like Quba Solutions can help with your cash flow by paying 100% of your profit over weekly, it doesn’t help if you don’t have enough work on to pay the bills so the bare minimum is important in planning your cash flow forecast.
Its sometimes helpful to create a “punchy” forecast - one you feel is you can hit if the there is wind in the sail – always helps the motivation seeing what you could create and how successful you can be if it all goes to plan. 6 to 12 months is fine – any further ahead is really beyond realistic predictions.
Once you have a Sales Forecast and you’ll know what you’ll bring in you can create your cash forecast – a sheet of your profit versus your costs. Most start-ups have little in the way of start-up costs – mobile phone, a database of sorts and a laptop to run it from. Some start-ups like to have a base if there is more than one person involved so there are increased costs there, otherwise keep it simple and have a low base. Most recruitment consultants want to start their own recruitment business to make money for themselves rather than lining someone else’s pocket so its important to make sure you’re earning.
Here at Quba Solutions we can help you with funding the temp element of your business, for more information on how we can support your business why not call us on 01305 233 178 or email firstname.lastname@example.org to find out more.