How to deal with cashflow crisis (I’ve been there!)

Keep calm and have a coffee[/caption] Keeping your head during tough times is one of the hardest things to do when owning a recruitment agency. Keeping your head, motivation, and momentum during a cashflow crisis in a recruitment business is one of the hardest things in store. While I have been running my business on a couple of times while being profitable, I have found myself in a position that cash flow was not keeping pace with business needs. The first time I went through this issue I was hardly able to stay together with my motivation, and momentum. However, keeping your head and acting are essential aspects of any cashflow crisis. Below we have outlined seven steps you need to take during a cashflow crisis.

Keep your head in the game

Keeping the leader in the game is one of the hardest things in business during a crisis like this. Personally, I have always found the head match the hardest part of running a recruitment business. But keeping it is vital. Getting perspective is also critical. The word of Winston Churchill is always worth remembering at a time like this: “Success is not final, failure is not fatal: it is the courage to continue that counts.”Winston Churchill Even if everything goes wrong. This is not the end of the world.

Understand the costs to the business

This is a vitally important step. Understand the up-and-coming costs to the company. Once you understand and know when money comes out, for how much and what operations it feeds into the business. Put every price into one of three columns – vital, beautiful to have and not needed. Vital – These are costs are keep the wheels turning. Rent, salaries and ats and software costs. Nice to have – These are costs that feed into the business and can have an impact, but the company will keep turning without them. Not needed – this is the stuff that just has no effect on creating sales or making placements.

Prioritise spending and Cut, cut, cut costs and then cut some more

Money is going to leave the business. Use the cash you have to pre-pay for specific items and ringfence significant money. Every crisis is an opportunity. Use this crisis to cut costs from the business that does not help or produce an adequate return. Look at every price and decide if it really is worth keeping. Use the cashflow crisis to make the business as lean as possible.

Get on the phone to old interviewed candidates

Pick up the phone to candidates you sent to talk over the last year. This should just take a day to go and check out what they are up to. Look for those behind-your-back placements and

Get on the phone to old clients

There is a saying “sales solve all problems” and getting on the phone in recruitment is the only ways to solve this problem. Get on the phone to everyone who has bought of you in the last 3 years. People who have purchased from you in the past are more likely to buy again.

Get on the phone to outstanding invoices

If the cashflow crisis is severe enough to warrant it, get on the phone to outstanding invoices and explain the situation and see if there any way at a partial advances payment. You may have to offer a small discount, but it could well be enough cash to keep the light on.

Oh and relax

Trying to relax in the evening and not worry too much about business. This is of course much easier said than done. My ultimate suggestion would be to switch off your emails and leave your laptop at work. Cashflows crisis are a real stain how always remember that the Phoenix needs to burn to be reborn.  



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Number your to-do list

Number your to-do list Why should you number your to-do list? Because Warren Buffet says so and he is close to the greatest investor in history.

However, do you need another more compelling reason? How about it makes you more productive.

Once you have gotten into the habit of creating a To Do list daily you should then start to also log each item in order of importance and impact on your recruitment desks business.

Deciding importance can be difficult, however, I have found that one of the best ways to figure out and decide is look at my to-do list and see what makes me the most uncomfortable.

Generally, as a rule of thumb, this will be the most important task. From there, generally tasks further down the recruitment process are the most important. E.G. tasks closer to the candidate starts  .


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MTDLM always kicks ass

Some people love them. Others hate them. I personally am a real lover of the To-Do List.

It is the best productivity Life Hack out there. Now we think that you should have multiple To-Do Lists. As a recruiter you will have a range of balls to juggle; clients, candidates, administration, as well as managerial and internal tasks. There are a lot of various tasks that need to be dealt with.

And that does not even cover all the long term projects that you are going to have complete at some point. When you put this into perspective, it become less about creating multiple To-Do Lists but stopping information overload. This is where the multiple To-Do List method comes in.

With the Multiple To-Do list Method (MTDL) you get to easily create lists that are specific for each of the balls you have to juggle.

For example as a recruiter you will need: Client, Candidate,  and Administration Lists. As a Billings Manager you will need: Client, Candidate, Administration, Managerial Lists So how does the MTDL method work in practice?

You need to create a spreadsheet on your desktop called To Do List Once created, you need to create three Columns Completed?, Task, and List.

Add a filter to this row. Begin populating the spreadsheet with all the tasks that need to be completed.

On each task also put the appropriate list e.g. Candidate, Client etc. Once you have fully populated the spreadsheet with all of your tasks that need doing you are now ready to print.

Filter the spreadsheet by each list type e.g. candidate and print off.

Take the printed copies for each of you lists and number each item 1,2,3 in order of importance. Leave the office and go home.

Tomorrow repeat, but put a Y in the Completed column against each task that you have completed. Filter. Print and Repeat.

This process each evening will give you the ultimate To-Do List and will allow you to get started straight away on your projects each and every morning.

Now go out and get them tiger!


Thank you for reading this Recruitment Hack. You can get a daily Recruitment Hack sent to your inbox by visiting Recruitment Hacks. The Book: Recruitment Hacks is now available on Amazon