Setting up a new business is one of the most exciting undertakings of anyone's life – and if you've decided to do it, you'll want to set yourself up for success.
One of the most important steps of building a successful business is ensuring that you have the enough capital and financial support to give your agency stable footing and the right platform to get off the ground.
So, how can you raise money to start up your recruitment agency?
Sell and downsize your luxuries
To make some quick capital, consider selling some of the valuable personal assets that you don't really need.
For instance, even though swapping your car for a cheaper and more cost-effective alternative may be a painful idea, doing so could provide you with a handy sum of cash that could pay for essential start-up costs.
Recruitment can be a highly lucrative business but no entrepreneur escapes without a degree of financial sacrifice to get their dream off the ground.
Borrow against your assets
Many entrepreneurs also opt for the route of borrowing against their home, as this gives them a hefty injection of money that can help relieve some of the pressure attached to the first few weeks and months of trading.
However, it goes without saying that this route should only be taken if you're absolutely sure you'll be in a position to meet the monthly repayments.
Another way to raise capital for your recruitment start-up is to borrow against insurance policies. This method of borrowing provides an alternative to lending against your home and offers lower monthly payments.
Get investors on board
Although pitching for an investment might seem daunting, it can be a great option if you're setting up your first business.
Teaming up with seasoned investors, who understand what it takes to launch a new business, provides both the financial capital you need and the invaluable knowledge of a start up expert.
The number of recruitment investment companies is growing and accessibility to investment funds is better than ever for recruitment start ups, so now's a great time to consider this option!
Borrow from supportive friends and family
Finally, a source of finance that should not be underestimated is friends and family.
If you're lucky enough to have people around you who are able to give you a loan, you're in a great position. Loans from friends and family often have extremely generous or non-existent interest rates attached to them - which is a huge money saver long term.
Of course, there's always the risk that borrowing from a loved-one could negatively effect your relationship, so remember tread carefully.
Deciding which business model your firm uses can make or break your agency. We've written an eBook about the five recruitment business models that'll help you build a scalable agency: