Money, Money, Money
Nelson Mandela once said that ‘Money won’t create success’ but ‘the freedom to make it will’ & although Mr Mandela was not a budding recruitment entrepreneur, I think he is 100% right!
The truth is that SSG has been called a lot of things over the years, but my favourite is that we are just an ‘enabler’ – we simply enable motivated recruiters to launch a business. We make it possible, providing the investment and the expertise. All that we are really doing is creating the environment in which you guys can go on & create success - & money. You just need the freedom to go out & do it.
Great sentiment of course, but for all of that, you still need to know how you are going to physically pay the bills whilst your new business ramps up. No doubt, you still need to pay the rent, eat, keep warm, take the kids to school and do all of the things that we all need to do, every day. So, how much money do you need to have set aside? How long does it take to get going, what is the average experience of SSG Clients since 2003?
Once you know how much money you might need to set aside to survive the ‘baked bean period’ of your business ramp up, you then need to solve the Money Puzzle – in other words, where is that money going to come from?
Money to get started
My Fighting Fund
However I am going to eventually solve the Money Puzzle, I need to establish my ‘fighting fund’. I need to understand how much I might need & where it is going to come from.
SSG’s Free Launch
Remember, free is free. The launch of your business is free. You do not need to set aside money to launch your business, just money to cover your ‘baked bean period’
Baked Bean Period
Every business has a ‘baked bean period’ – an opening period where you will be making no money & be faced with a tin of beans for tea! How to survive that period?
The Money Puzzle
Just save up and plan ahead. It all sounds so simple doesn’t it. Just put away some money over a year or so and go for it.
Banks are really not that evil these days you know! Getting a small loan is a practical solution for most Recruiters, certainly one to consider I guess.
It is great when a family member or good friend ‘steps up’ and makes the offer to help – how great is that? But, there must be a reason why so few would recommend it.
Some Money Facts
Baked Bean Period
The costs associated with the launch of your new business are covered by SSG – that’s a fact. The Launch is free. So, you only need some money behind you to pay your bills whilst your new business ramps up. With the best will in the world, you are unlikely to make a placement, have SSG invoice a placement on your behalf & for your client to pay your invoice in the first month of trade, so you need to think very carefully about how to survive this ‘baked bean period’. Only two variables to focus on really – how much physical cash you need to have available each month to cover your basic outgoings & how long do you think that it will be before you start to generate revenue? Since 2003, the average SSG Client trying to place Perms has needed between 2 & 3 months money behind them whilst the average SSG Client working the Temps market has needed to wait 21 days before seeing any GP. Something to think about.
I get paid when?
Unless you have decided to go down the SSG Equity Investment route (whereby SSG guarantee you a monthly Salary during the opening period of your business), you will only get paid when you make a placement – such is the life of the Recruitment Business owner. So, you make a placement, SSG does the paperwork for you (raising the invoice & completing the credit control on your placement) & your end-Client pays the bill. The money goes directly into your Company bank account (not SSG’s – it’s your money after all). You then settle the SSG Service Charge & the rest belongs to your business. So, keeping it really simple - SSG will chase the money for you working against whatever terms of business you agree with your client (& of course we are very happy to advise you regarding what is reasonable). If it makes you feel any better, can you imagine how motivated SSG is to get you paid? SSG only gets paid after you get paid!
Can SSG Help?
Imagine the scenario; SSG invests in the launch of a new business, we spend the money, commit the physical resources and try really hard to help our new Client to succeed. Unfortunately, our lovely new Client struggles and a lack of hard cash threatens the very existence of the start up. Not only is this horrible for our Recruiter Client but it is really bad news for us too. So, obviously we want to help - & not just because we are such nice guys! You might be surprised how we can get you through these tough times. You need to talk to us, explain what is going on and ask for help. We might be able to advance you money against a placement or look at the SSG Equity Investment option for you? We could perhaps find you an investor, be your investor or arrange bank finance – long or short term. Remember, we have been doing this since 2003 and know that any problem can be solved if everyone really wants to solve it.
Cash Flow Killer
They say that Cash Flow or rather the lack of cash flow kills more businesses than anything else. Whilst we might argue that being a lazy or poor business owner is more of a threat, we get the idea. So, what can we all do to make sure that the lack of cash flow isn’t a problem? Well, it all starts with you guys making a placement & letting SSG have all the details that we need to ensure that your end-client pays the invoice on time (for example, it is great if you have a purchase order number & if the placement details are accurate obviously). SSG then makes sure that the invoice lands on the right desk without any confusion. We then hit the credit control button really hard and get that money paid to you. Sounds great, but what can we do if the process fails or your end-client won’t play nicely? Well, we have been doing this since 2003 & by now we know two things – the first is that we will always behave with 100% professionalism & the second is that we will never, ever, ever back down! Remember, SSG does not paid until after you have been paid. Is our motivation clear?
Money is always a problem if there is not enough of it. Whatever strategies we help you to apply, the bottom line is that you need to make money. Any business will go under if it doesn’t make money. So, obvious though it sounds you need to stick to your business plan & your business plan ought to be just three words long (i.e. make a placement). SSG wants to help you make sure that you generate invoices for SSG to chase. You need to work with us, engage with SSG & let us help you – we have the tools, we have the talent & we have the time. That’s the first lesson. The second key lesson is that money is not money until it is in your back account! Your end clients might be really nice people & appreciate the help that you have given them but they do not want to pay a recruitment invoice – deep down, you know that. So, we must never give an end-client a reason to delay, procrastinate or argue! We need to follow an agreed & clearly defined process. We put dots where they should be and cross what ought to be crossed. We are polite but firm. We need you to be the same. Together, we can make sure that you make a placement and that you get paid for your placement.