The a-z cash flow formula

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Cash Flow is at the core of any business, large or small.

From managing your very first drawings right through to that first internal hire; timing is always key.

For a new venture, healthy cash reserves will help weather any early setbacks.

One of many ways you can achieve positive cash flow is setting a precedent for prompt payment of invoices – in some cases, offering incentives for doing so.

£15 million shared profit

£40 million turnover

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The importance of cash flow in recruitment


Businesses of all sizes need to have a good handle on their cash flow otherwise they are unable to operate.

When a recruitment agency is initially starting out, the first months will prove crucial to its success. Owners and managers should ensure there is enough cash coming into the business to pay regular expenses to ensure operations run smoothly. This is often easier said than done, particularly when building up a client portfolio from scratch.

A more established firm might have a financial buffer to wait for invoices to be paid, but a start-up rarely has the same luxury. In order to survive, new recruitment firms should have safeguards to make sure cash flow does not become a problem.

Cash flow problems can be a consequence of over-spending, although it is also down to customers failing to pay on time or, in some cases, at all. For recruitment agencies that do not charge an upfront fee, the impact can be catastrophic.

Without liquidity, a firm cannot pay its staff and other expenses, and could face high bank charges, lost growth opportunities and even bankruptcy.

Frequently Asked Questions

How much does it cost?

The business launch is free, and you have access to all SSG services in exchange for a service charge, which is calculated from a percentage of your billings

How much is the SSG service charge?

The SSG service charge is calculated dependent on your projected billings, risk and the business services you require from SSG

How long is the contract for?

We work in partnership for an initial 4 year term, though most of our clients stay with us for much longer

What services do SSG provide?

As well as business mentoring, SSG provide accounting, payroll, technical, marketing and creative solutions for your recruitment business to all of our clients

How long have ssg been launching recruitment businesses?

SSG have been launching recruitment businesses since 2003

How long does the launch take?

We can fully launch your business in one week, from the day you sign your contract with SSG