Your most-asked start-up questions: answered by founders

Funding & finance

How much does it cost to launch?

“I thought I needed £100,000 and was having chats with investors. After speaking with RecruitHub, I found that I could self-fund my launch and retain full ownership of the business. I had £25,000 in savings and got a £10,000 loan that I pay back at £260 per month over 5 years.”

Founder ABC

“I was going to sign with an investor for 50% of the business, to help me hire staff from day 1, after a business modelling session with RecruitHub, I found that I could launch on my own, hire organically from cash flow in Month 6, keep 100% of the business and only be a few months behind the “schedule” mapped out by the initial investors.”

Founder XYZ

Starting a recruitment business is one of the most financially accessible routes to becoming an entrepreneur.

You don’t need to spend money on inventory, products or even a physical workspace.

The amount you need to get started depends on:

Your personal living costs (rent / mortgage, car, food etc.),

Your operational costs,

How quickly you can generate sales and get paid by your first clients,

How quickly you’re planning to add headcount (additional staff) to your agency, and

Whether you partner with an accelerator platform who cover all or part of launch costs (like

RecruitHub⁠

)

⁠

For most start-ups who plan on growing organically (reinvesting income into growth, without external investment), approximately 6 months’ worth of personal living costs + business operational costs is enough.

This assumes you will:

place candidates inside your first 3 months

invoice the client(s)

receive payment (~30 days later), and

grow your agency through organic cashflow from there.

Founders can also consider business loans (usually up to ~£20k), which can top up personal savings and bridge the gap.

⁠

Need help with forecasting?

RecruitHub helps prospective founders with full financial forecasting, helping you:

understand your full launch costs

calculate your personal income (and savings required)

build a realistic, detailed P&L forecast.

For more information,

get in touch⁠

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