Closing the Money Gap: A Simple Guide for New Temp Agencies
Opening a new temp agency attracts a fairly unique challenge – the "Money Gap." We thought it helpful to explain why there is nothing that can’t be overcome with the right advice and processes.
Understanding the Money Gap
The Money Gap, put simply, is when you have to pay your workers before your clients pay you. For a start up temp agency, this is a tricky financial spot.
Simple Solutions for the Money Gap
Getting Paid Faster – The Quick Cash Solution
One way to tackle this is by getting paid faster, for instance by using a service called invoice factoring. This is where you get immediate funds by selling your unpaid invoices to a finance provider. They give you some of the owed money upfront, helping you pay your staff on time. There is a charge for this service, but our bean counting superheroes can help you figure out the wisest way to use this solution.
Better Money Management – The Smart Planning Move
Another simple solution is smart planning. Your accountant can help you plan your company’s other expenses more effectively. A good way to think of is is like having a financial visionary by your side to organise your funds and processes in the most appropriate way. This could involve negotiating payment terms with suppliers and/or finding ways to speed up your clients paying you.
Efficiency Boost – The Easy Digital Help
To make things even simpler, you can get some digital help. Automation, like a digital assistant, can streamline your invoicing processes, saving you time and effort. The apps give you real-time insights, which in turn make your financial tasks easier. While the digital helpers produce the numbers and our financial guardians interpret them for you, you can concentrate on growing your agency.
Becoming a Money Hero
Overcoming the Money Gap is not just about surviving; it's about becoming a money hero. As a temp agency, solutions like quick cash from invoice factoring, smart money planning, and the efficiency of automation can remove stress. Your accountant, who's like a money superhero, should lead the way, making sure your agency not only survives but thrives.
Starting a temp agency might have its challenges, but the Money Gap doesn't have to be one of them. By using simple solutions like getting paid faster, managing your cashflow better, and getting some digital help, you can turn your agency into a financial success story. Embrace your inner money hero and conquer the Money Gap, ensuring a smooth start to your new business journey.