It’s pretty simple.
Either grow your business or improve the way it runs.
You could even do both.
However, growth doesn’t always mean profit.
You soon realise this when your outgoings decide to keep pace with your income, or you encounter a sudden hiccup in cash flow.
Or, these decide to happen at the same time.
It comes down to knowing how to grow and how to avoid growth from getting in the way of running your agency.
Otherwise, growth will become a genuine threat to survival.
There are almost two million contractors in the UK market for agencies to capitalize on with their ranks swelling by 2% annually.
So, how do recruitment agencies unlock the serious figures that ensure growth means profit?
They remove the work that comes with growth
As a top biller in recruitment there was a very clear model.
Bill more and you make more.
As the owner of your own agency the focus becomes a little wider.
You have to consider that with every contract placement your agency makes, it brings an additional workload of processing them with it.
Without a dedicated team behind you it will eat into your time.
Which means less focus is spent on growth and recruitment.
It comes down to the value you place on your time.
How much more could you make if you had an extra hour or two of core selling time each day?
More placements demand more time and sooner or later every agency will make the choice to either invest in back-office staff or outsource the work.
Investing in staff means paying for an annual salary, office space, pensions and potential staff cover.
Technology removed the need.
It also removed the cost and work by automating the contract management cycle.
The entire process can now be managed from your fingertips with little input. It gifts agencies with the time to focus on earning.
Why choose a cloud management platform over an in-house department?
Because you open the door to bigger profits and streamline the company.
Recruitment agencies earn more by directing their resources in the most profitable directions and agencies that embrace the cloud equip themselves with a competitive advantage.
Secure a financial advantage
Growth goes hand in hand with finance.
Having available cash to hand is the glue that holds a contract recruitment agency together.
It’s why the biggest advantage to an agency in the contract market is how the funding behind them facilitates their growth.
What does this look like?
It’s a trait of successful business owners to take risks, but cash flow is something that should never be left to chance.
Any agency that grows is stretching itself to secure a bigger yield.
This means agencies need unfettered access to the finance that they do have. What’s the use in having profit that’s inaccessible?
A good financier puts your profit in your pocket before your outgoings burn a hole.
The contract market is in full bloom and agencies are in a great position to benefit from this.
By removing the work that comes with growth and securing the best invoice factoring – agencies can direct all their attention to growing their book.
They can feel comfortable that their back-office and finances are running smoothly.
See our breakdown of the questions you should be asking to secure the finance your agency needs.