Dark side.tv is a monthly newsletter providing business advice and resources. The February 2012 issue discusses positive economic signs like increased placement values and companies seeking to hire. However, the editor cautions against complacency, noting that recessions will inevitably occur again. The issue features regular columns on topics like selling a business, cash flow management, and dealing with tax authorities. It encourages business owners to prepare for future economic downturns by growing their companies, diversifying revenue streams, and saving money.

1. Dark side.tv
FEBRUARY
2012
ww
w. the The Power of Th
Three!
At
Last!
Some
Bright
ideas!
Inside this issue:
Selling up! Part 3 (of 5)
Worthwhile PR Strategy
Cash Flow Tool Kit
Hello from Lloyds
BRANDING FOR YOU MORE, MORE, MORE!
• Professional Presenter • New Client Launches
• Online Video • Free Training Resources
• Professional Director • Serious Stuff (Clare!)
• SSG Client Discount • Silly stuff from SSG

3. EDITOR’S NOTE
25
A trickle of positive news is beginning to filter
Ever So Serious
through to increased placement values.
A little more money is being made by most.
CLARE
More of our Client Ventures are interested in building
a team over the next year or so & quite a few are
advises you to
actively seeking Employees right now.
More applicants to SSG are citing money as the Roll The Dice
reason that they want to work for themselves, rather
than being fed up working for someone else (a sure
sign that Recruiters are billing more than they were).
-see page 25-
Inflation is coming down, whilst interest rates are
set to remain very, very low well into 2013.
The rise in Unemployment has slowed down. Time to Gamble!
Fair enough – all of that good news is true but do any
of you feel like taking it easy?
Are any of you so confident that you are planning a
Regular Stuff
big summer holiday?
Anyone bought a new car recently? 5 Hello from Lloyds
It seems to us that although things are easier, things 8
Today’s
Frustration!
ain’t easy. Specials
This is not yet the time to start cracking open bottles
9 Something New
of Bubbly or booking a round of golf every Friday 16 Gill & Year Ends
afternoon.
But it does seem the time to start to think about the 18 Vikki explains P&L 4 A VAT Inspector Calls
future though.
25 Clare & Headcounts 6 Challenge the Tax Man
One day, another Lehman Brother’s style recession
will come along and we all need to prepare a little 17 Cash Flow Tool Kit
better this time I guess.
There are only a few things that you can do to
insulate yourself against a volatile economy – you can
Odds & Ends
build your Company and sell your business. Features
You can diversify your placement fees into
14 Economy Update
opportunities outside of your core business or you
can start saving as if you know that a recession is 15 10 Finding a Buyer
coming around again!
Ye Olde Catalogue
24 13 Never Ending Launch
Whatever is best for you, let’s all be real to the fact Pops Pantry
that apathy is not an option.
26 20 Training Resources
Need Help?
None of us can afford to sit around hoping that the 21 Worthwhile PR Strategy
worst is behind us.
The recent recession may be almost over but just like
London Buses, there is always a another recession
on its way!
info@ the-darkside.tv
1. All the contents of The Dark Side are only for general information and/or use. Such contents do not constitute advice and should not be relied upon in making (or refraining from making) any decision. Any specific advice or replies to
queries in any part of the publication is/are the personal opinion of such experts/consultants/persons. 2. The information in The Dark Side is provided on an "AS IS" basis, and all warranties, expressed or implied of any kind, regarding
any matter pertaining to any information, advice or replies are disclaimed and excluded. 3. The Dark Side and its associates shall not be liable, at any time for damages including, without limitation, damages for loss of any kind(but excluding
personal injury or death caused by negligence) arising in contract, tort or otherwise from the use of or inability to use the publication, or any of its contents, or from any action taken (or refrained from being taken) as a result of using the
publication or any such contents or use of information contained in the publication. 4. No representations, warranties, or guarantees whatsoever are made as to the accuracy, adequacy, reliability, completeness, suitability, or applicability
of the information to a particular situation. 5. Certain references in the publication refer to third parties over whom The Dark Side has no control or connection, business or otherwise.
Material Submitted by Others
Some sections in The Dark Side contain materials submitted by users. The Dark Side accepts no responsibility for the content, accuracy, and conformity to applicable laws of such material, and any views or opinions expressed by such
third parties are those of the author alone, and do not necessarily reflect the views or opinions of the owners or publishers of the Dark Side.
Effect of these Terms
These terms constitute the sole basis on which the Dark Side is published and made available and supersede and replace all prior or contemporaneous understandings or agreements, written or oral, or any implied terms which might
otherwise apply.
3

4. An Inspector Calls!
KNOCK KNOCK....
It doesn’t matter what you do, at some Therefore, periodically HM Customs and
point we all have to face the “dreaded VAT Excise would like to visit to check how you
Man” knocking on our door. keep those records and that you calculate
your VAT correctly.
Funnily enough, those few words seem to
scare people into hiding under a large box They are not there to find “extra” money
and desperately hoping that he stops that the tax man can grab from you - if
knocking on the door & leaves you in they do find any errors they will request
peace! payment for any under paid tax.
In reality, a VAT inspection is far less However, with the backing of the SSG He’s not this cool when the VAT man comes
daunting than it seems. They don’t just Services you know that the VAT collected knocking on SSG’s door
turn up at your door unannounced from your clients is correctly accounted
WHAT’S A VISIT ‘LIKE’?
together with a scary clipboard. for and included in the VAT figures that we
provide. The visit would generally last between a
In fact (& don’t laugh!) some of the
few hours to a day depending on your size
inspectors are even nice! - offering them You also know that we keep your books
and any findings they make.
unlimited tea and biscuits seems to and records here in a professional manner
lighten the mood too. so any paper work provided to us is easily The day would start with a brief
found to back up any reclaims for VAT background chat. Expect to be asked
WHAT DO THEY WANT TO SEE?
questions like :
But they are not only there to check up on
As you know, you keep VAT records you.
yourself and complete your own VAT What market are you in?
return (all within the services provided by They will also offer advice, answer any
What is your annual turnover?
SSG). queries you have and generally try and
assist you in calculating your VAT Who are your regular clients?
The vast majority of businesses will correctly.
complete correct VAT returns, pay the What goods/services do you
correct amount and generally be “above PREPARING FOR A VISIT provide?
board”.
As previously mentioned the inspector How do you account for VAT?
will want to check your books and records.
However, not all businesses are this
How are your Sales invoices
honest. In effect they want to look at the raised?
information that we produce and keep
here at SSG. What accounts procedures do you
have in place?
If you have a visit, SSG will provide the
information ready for the inspection in an What are your regular purchases?
organised format so you do not have to
worry about where information is.
HMRC will request amongst other things
the following which SSG currently hold for
you:
Bank statements
VAT workings
Sales invoices listing
Sales Invoices
Purchase Invoices
We will also be available on the day to
provide any further information that is
Some Inspectors are quite nice really requested. Be careful when filing any returns
4

5. The aim of this is to enable the inspector TIME TO PANIC?
to get a feeling of what your business
does, how you do it and whether you have Not at all!
relevant experience or have systems in
place (like SSG) to ensure that you All these things may sound daunting.
calculate VAT returns correctly.
There may even be questions that you
Once this is completed they will then cannot answer on the day.
move on to checking a sample of
transactions (both sales and purchases) to But don’t panic.
ensure that the correct VAT is being paid
to HMRC. Once complete, the inspector will leave
and put in writing any findings they made
This will consist of checking randomly and any outstanding queries for you to
selected entries in the VAT workings to the answer.
relevant paper work.
And as always, do not forget SSG are with
So, for example - they may see a sales you all the way to make the inspection as
invoice in a particular quarter’s VAT hassle-free as it possibly can be.
workings and ask to see the sales Invoice.
If you want to chat, just give me a call –
They may follow this through to see the Darren Hulbert 01442 200 961 – we are
payment of this invoice (either bank here to help!
statement or factoring account).
Feb
2012
BLAST OFF!
Never an easy market
of course, but this Super
Hospitality & Catering
Star Recruiter has
almost 10yrs of
serious experience in
the market.Traditionally
Temp-based, the
occasional Perm
fee ought to make
the daily grind
seem worth it!
Market is Eastern
Home Counties
For more info, contact:
clare@supportservicesgroup.tv
Would you crack under the
interrogation? Feb
2012
BLAST OFF!
Finally they will look at the returns Anyone familiar with the
submitted and look at what they would
Construction CIS Work
Construction Sector
expect to see filed and look for differences will know that all CIS
related work creates
to what you have submitted.
particular cash flow
problems for any new
They would then seek explanations as to business, but with
why there are differences. the help of SSG our
talented recruiter
has a great
So, say you submitted a return that had chance to compete.
£1,000 in the VAT reclaimed on purchases East Midlands and
(box 4) but in the box where you declare all Temp!
cost of purchases (box 7) there was only For more info, contact:
£500 they would ask why your VAT was clare@supportservicesgroup.tv
higher than the net purchase costs.
5

6. ‘Duff Up The Tax Man’
Taxpayers Urged to Challenge
the Tax Man!
As an individual faced with a WHEN TO CHALLENGE?
Self-assessment Late Payment fine from
the Tax Man, the tendency is to cough up The latest cases resulting in defeat for the
& shut up, but the latest advice is to Speak HMRC have revolved around
Up and Man Up! circumstances where the Revenue have
been found to have acted as
In recent weeks, HM Revenue & Customs ‘unreasonable’ or ‘misleading’ or to put
(HMRC) has LOST a series of court cases it another way, where the HMRC have not
involving late filing of individual’s Tax acted ‘fairly’ or ‘in good conscience’.
Returns.
For example, if you post your return on
As SSG keep banging on, as individuals we time but it actually gets delivered after
all need to file our tax returns each year & the filing date, it has been ruled that it is Time to
you have two key dates to meet to avoid wrong for HMRC to impose a late filing ‘Man Up’
any issues – depending on whether you penalty.
want to physically send a paper version of There is no question that the general
your tax return or just do it via the Another example involves individuals economic climate has precipitated an
internet: overzealous attitude amongst some tax
who freely admit that they failed to send
offices and common sense has gone out
their tax returns to HMRC on time but did
October 31st – this is the deadline to file not receive a reminder to do so for of the window in an effort to bump up the
a PAPER return & revenues coffers through the imposition
months after the deadline had passed &
of fines.
therefore they incurred additional fines
January 31st – this is the deadline to file (interest etc)!
on-line. WHAT ARE THE PENALTIES?
Other examples cite the cases of honest
However, new tax rules brought in this tax payers simply making a mistake on So, if you are just lazy & therefore late in
year allows our mates down at HMRC to their returns (which were then filed ON filing your tax return, you will
automatically issue a £100 to anyone who TIME) but were penalised anyway because automatically be fined the standard £100.
fails to meet the January 31st deadline - & of ‘inaccuracies’.
apparently, there are millions of us out Fact.
there who fall under this catch-all system.
If you haven’t filed a proper return within
Even if you actually owe NO TAX, you will 3 months of the due date, then additional
now still get this £100 fine if you file a late DAILY penalties of an extra £10 will be
tax return. added to your fine.
The experts estimate that this new system
This daily £10 will top-out at a maximum
will earn the tax man an extra £90,000,000
of £900.
this year.
Money that will no doubt be spent Late filing your
subsidising the bonus payment at failing Tax Return
banks owned by the tax payer....
Anyway, the point is that these very same +
experts are now advising self-assessment
taxpayers (like you and me) to challenge Daily penalties
HMRC if we are not 100% certain that we
have failed to do what we needed to do.
=
“Not another date to remember You do the maths!
- I can just about recall the Mrs’
No need to dance to their tune! (or do your Tax Return!)
Birthday!”
6

7. After 6 months of failing to file, you will £25-30,000 £30,000 Basic
then incur a penalty of 5% of any tax due
(or £300 – whichever is the greater Linked In Guru! 50% Equity
amount).
After another 6 months (taking you to 12
months late) you will face another 5% (or
£300) plus interest of 3% on the total!
Fit to fill these Spec’s? Recruitment Consultant
Super Geek Required! Time to get started?
Herts Based We are looking for a couple of very special
individuals. Recruiters who want to own
If you are reading this advert, you surely
their own business. Fee Earners who want
must know what we do here at Support
to do something more than make money
Services Group? So, let me save some ink
for someone else. Motivated Recruitment
and assume that you know what a bunch
The Easy Solution! Consultants with the very special talent of
of great guys we are & how friendly,
being able to motivate others. This is both
determined and entrepreneurial everyone
a job (with a good salary) & a business
at SSG is – blah, blah, blah!
WHAT TO DO? opportunity (you will own 50% of the
You will certainly know that we are based business). Tremendous.
in great offices in beautiful Berkhamsted
(near Hemel Hempstead) and that we are • £30,000 basic + Commission.
File on time is the glib answer of • 50% Ownership in the Company.
course. very lucky to be successful, innovative and
without internal hierarchy. Well, our next • Any Recruitment Sector.
great move is to employ a Linked In • Unique backing & Support.
If you don’t file on time & you do superstar to help us develop and deliver a Based out of a wonderful office in Herts
receive a fine, be honest and consider if comprehensive Linked In strategy. (Berkhamsted) you will work alongside a
you feel that you have been treated in driven group of people with extraordinary
Every single Client that we have and every
an ‘unreasonable’ way or ‘unfairly’, then talents and enjoy access to all of the tools
additional Budding Entrepreneur that we
get in contact with us and we will let that anyone needs to be successful. Truly.
help to launch a new business is going to
you know if we think you have a case. have to face the reality of Linked In and The goal is to generate sufficient
Social Media. With the amount of money, placement income to build a team of
Whatever you do, the advice is to no effort and hard work applied every recruiters around you and to create
working day to the issue of candidate something special. Tricky.
longer just do as you are told when the tax
procurement, it is obvious that we need to
man issues his fines, but to look at what be 100% on-top of the latest cyber moves. You can work in whatever market you have
they are demanding & ask yourself ‘is this But we want more... experience within – temp’, perm’ interim,
fair’? contract across any sector. Access to job
• Candidate Procurement Strategy. boards, recruitment software, vacancies,
• Database Development. credit checking facilities, recruitment
Feb • Client Relationship Management. training, on-line testing facilities and so on
• Embedded Video & Broadcast. is guaranteed. Is there anything else that
2012
BLAST OFF! In developing for both SSG and for all of
our Client’s a detailed, pragmatic and cost
you think that you need? Tasty!
Your business partner has ‘been there,
Let’s Play Doctors & Nurses
The Healthcare effective solution to making the most of done it & got the T Shirt’ but is also the first
Locum market may Linked In, you will then need to have the to recognise that this is your time – your
appear scary these days flair, interest and charisma to deliver this opportunity. You do your job and our job is
(with all the Public Sector great work – in a useful and friendly way to to ensure that you have every possible
uncertainty & legislation) a diverse range of recruiters working in advantage to help you to grow your
but it is a market well
many different sectors. business.
known to SSG & also to
our duo of Recruiters! This is an opportunity to be the SSG This ought to be very exciting. You ought
SSG need to Expert! A Super-Geek with Flair! It will be to enjoy the challenge and be desperate to
provide special help with
fun, hard work and very rewarding. The get started. You need to be ‘ready’. You
Candidate Attraction
via the Trade Press position is open to anyone who can do the must be determined, full of self
(Staff Nurse) but job – from recent Graduate to deprecating humour and currently living
in this Candidate led Returning-Mum to disaffected Recruiter. If within commutable distance of the
industry, there isn’t you think you can do the job and want it – Berkhamsted office.
much point in trading then apply!
without the raw product! Jump on the ‘phone and start talking about
Come on guys – take the challenge! what you want to with your career.
For more info, contact:
clare@supportservicesgroup.tv David Jones David Jones
07967 562 847 (8am – 9pm) 07967 562 847 (8am – 9pm)
X
7

8. Accountants charge to do stuff for you in the what you expect Accounts to say, tell
same way that any one charges for what you or ‘mean’.
they do.
How the hell would I know?
How can they claim that they are special
because their service will save you money? Aren’t you supposed to tell us that Mr.
Accountant?
Any ‘professional’ can claim that can’t they?
So as I see it, the first thing an
A plumber saved you cash because he fixed Accountant does is charge too much
a leak before the pipe burst and a and the second thing an Accountant
ACCOUNTS AND ACCOUNTANTS!
hairdresser saves you money by cutting your does is to ask you what they need to
hair before it grows so long that you start do.
buying jumpers with ‘funny’ pictures
cleverly knitted into the design. This whole scam makes me think a
little more kindly of ‘Fat Dave’ (you
remember Fat Dave?
He accidentally plasters Cats behind
joists when working for pensioners).
Just for a change, two things are really Although Fat Dave charges way too
hacking me off at the moment now: much, he doesn’t ask you what he
needs to do or how to do it (although
Accounts &
perhaps he should).
Accountants
Of course, my gripes about
I am reliably informed that an Accountant
Accountants go way beyond this little
exists to not only ‘do’ your accounts but also
snapshot or irritation!
to save you money by ‘doing’ your accounts.
Don’t get me started on how long they
The theory goes (I am told) that whatever an
keep you waiting!
Accountant charges, you ought to be able to
see how they have saved you more money There ought to be a special
than they cost you. dispensation from the tax man for late
submission known as the ‘My
Apparently, if they charge you £500 for
Accountant never gets back to me’
something or other, then you should be able
clause...
to forensically trace where that £500 was
recouped through their brilliance. We haven’t so much as lost a Son, more So, how do you nail an Accountant?
In other words, an Accountant should be gained an ‘Accountant’
Rule 1:
able to ‘add’ something to your wealth!
Any twit can claim to save their clients
Always pay a fixed price for anything
money!
that he does for you.
That just misses the whole point of
Never pay ‘by the hour’ because the
anything.
most simple task will subsequently
A service is something that you need, not take him hours!
something that you buy because the Rule 2:
provider claims it will save you money (or
not). Visit one Accountant to help you to
define what you need before you
So, that’s the first thing about instruct another Accountant with
Accountants which just doesn’t add-up what you actually want them to do!
(done it again – did you see what I did
that time?!). Rule 3:
“Almost finished with your Accounts
now Mr Jones” The second stupid thing about Never let a Family member marry an
Accountants is what they always ask you Accountant.
(Did you see what I did there with the word about your ‘accounts’:
‘add’? – I used the word ‘add’ when talking All simple stuff really, but I guess that
about an Accountant, because Accountants ‘What would you like your accounts to what you need me for – to point out
‘add’ things up. show you?’ OR the bleeding obvious.
‘What would you like to see in your Of course, that mob at SSG will
So, by using the word ‘add’ when talking
Accounts’ OR probably just suggest that if you have
about an Accountant I made it seem like the
‘any issues’ with your Accounts or what
word ‘add’ was something to do with them,
‘What will you use your Accounts for?’ you might need an Accountant to do
as Accountants).
for you, just get in touch with that
First things first then – that all seems You know what I mean – an Accountant Darren Hulbert geezer (01442 200
rubbish to me. who produces accounts wants to know 961).
8

9. Something New
Professional on-line branding!
professionally presented video!
THE latest tool in business branding
In conjunction with a small team of SSG will draft a ‘template’ Company SHOW ME AN EXAMPLE?
Professional Television Presenters & presentation for you which you can edit
Experienced On-Line Producers, SSG has however you want (a simple Word Why not take a look at two recent
created the opportunity for you to enjoy document). examples of the work produced:
the marketing & branding advantages of
New Media. We will generate a branded landing page www.hostmyvideo.co.uk/bigsky
for you & record your video using top
It is now widely accepted that professional Presenters and experienced www.SSG-PhD.tv
professionally produced video content is Producers (with significant TV and
the next key stage in the development of On-Line experience). Which Presenter do you prefer?
a branded on-line strategy for any serious
Recruitment Business.
Until now, the production of innovative,
high quality video content has been
expensive, complex and rare, but with the
help of SSG you can transform your
existing web presence & branding
strategy.
Up to 3 Minutes of crafted Video
Presented by a Professional
Presenter
Branded in your Company
Colours
Branded with your Company
Logo
Fresh, Relevant & Targeted HOW LONG DOES IT TAKE? WHAT’S THE COST?
Content
Once you approve your script, we will Either a one off payment of £799 or 3
Monthly Payments of £299.
Never mind that current research assign studio time and return the carefully
suggests that Video content is 50 times as crafted on-line video within days of
I WANT A DISCOUNT!
effective as text SEO, why not simply production.
differentiate your business to potential Existing SSG Clients can generate this
Clients & Candidates and gain a serious HOW DOES IT GET ONTO MY WEB SITE? outstanding Branding Opportunity for
competitive edge over your competitors just £499.
whilst generating a real buzz across all SSG will create either a text link (e.g.
social media? <Click Here to find out more>) or upload WHO TO CALL?
an Image or Icon anywhere you decide on
WHAT DO YOU NEED TO DO? your web site (just as SSG has on our To book your Recording Date, please
www.SSG-PhD.tv home page – see our contact either Clare Armstrong on 01442
It’s easy & quick! mini Clapper Board). 200 957 or David Jones on 01442 200 944.
9

10. Selling a Business - Part 3


Regular readers of The Dark Side will This really means that Chubby must find
know that we are trying to provide an the wit & wisdom to produce an
Quite often, the production of an IM
overview of the basics involved in Information Memorandum – which is
would be the responsibility of the Sales
understanding how to sell a really the ‘CV’ of the Company and then
Broker (your ‘intermediary’), but of
recruitment business. approach sales brokers who specialise in
course the production of any IM comes
the recruitment sector.
at a price.
Part 1 (November 2011) examined ‘the
basics’ whilst January 2012 (Part 2) An Information Memorandum:
Obviously, the price of an IM can vary
looked a little more closely at how to
but it is likely to be thousands and
‘groom’ a business for a sale. An Information Memorandum (‘IM’) is the
require a lot of intellectual effort from
Company CV – it is a really significant
Chubby and his colleagues – records,
Well, let the excitement continue as we document detailing the history of the
analysis, conjecture & objectivity.
now look at how one might actually find Company, the biographies of the people
a buyer for the business. employed by the Company, the
It might be tempting to try and skimp
processes relied upon by the Company,
on the cost of your IM but maybe a
Please try to contain your enthusiasm the detailed financials and other
longer term view would be more helpful
until the end of the article – I wouldn’t information that might be useful to a
– pay a couple of thousand pounds
want you to get too worked up. potential buyer.
extra now which might generate a sale
worth hundreds of thousands of
Oh, and before I forget – please don’t Of course, a good IM ought to present the
pounds extra in a few months!
forget that you can access any of the positives of the business but in an
Sometime, the old sales adage of ‘you
articles generated through TDS so far via objective and reliable format.
get what you pay for’ is true!
the web site (www.the- There is no point in ‘exaggerating’ any
darkside.tv/recenteditions.htm) - but you successes as any subsequent due
probably already knew that. diligence process would immediately Sales Brokers:
highlight any such ‘exaggerations’. Let’s be clear, there are a number of
Anyway, to recap: different ways to sell your business.
It is serious document which would
Our hero (‘Chubby’) has built his typically NOT be something that Chubby These different routes can range from
recruitment business into a healthy & would put together himself. simply listing your business with a Sales
profitable (£300,000 p.a.) venture Organisation (e.g. a firm like Avondale -
employing 12 Recruiters from a single www.avondale-group.co.uk ) or using a
office location. highly respected Recruitment Specialist
(e.g. like John Bissell at LBA
Chubby worked hard getting the right www.lba-info.co.uk) or by approaching
advice and spent some considerable time a well-to-do mainstream Accounting
‘grooming’ his business (i.e. looking Firm (such as Smith & Williamson -
carefully at all aspects of Commercial, http://www.smith.williamson.co.uk/).
Legal and Financial Due Diligence) and
now hopes to secure a sale based on a All have differing methods for
multiple of the profits (i.e. a sale price generating interest in potential buyers
generated as a Price Earning (PE) and charge accordingly.
multiplier, reflecting the Future
Most intermediaries will want to charge
Maintainable Profits of the business – the
both a fixed fee (‘up front’ payment) but
‘FMP’).
also a percentage of the proceeds of any
successful introduction – much like a
The next thing that he needs to do (apart Recruiter placing a Software Engineer or
from ‘do a few pounds’ as Mrs Chubby Sales Person.
often ponders to herself as Chubby
snores his way through MOTD) is to The percentage charged for this
generate a ‘sales brochure’ and then introduction can range from 1% to
approach a few intermediaries who (typically) 4-5% of the total sales value
might like to help him find a buyer. I wish my IM had been honest.... of the ‘deal’.
10

11. It is the role of all such intermediaries to It is a good idea to think of any would-be purchaser feels justified in
work with the Vendor (i.e. Chubby) to intermediary as just like any good buying that business of course) but also
ensure that the IM is appropriate and Recruiter you have worked with in the in an effort to push down the price that a
then shortlist a number of suitable past – there are good guys and there are purchaser might need to pay!
potential purchasers. bad guys.
This target list of potential purchasers It is the job of the DD team to not only
would then be approached with an Intermediaries make their money identify weaknesses (e.g. poor
‘Executive Summary’ of the Company and mostly through the successful accounting policies or a lack of
followed up with a copy of the IM, if completion of a deal – so, we know that management structure or whatever else)
appropriate. they want you to sell your business! but also to negotiate in advance on that
all important Indicative Offer price!
Like any other ‘sales’ process, a good
intermediary will usually know of Think carefully about what you think
The issue that all Vendors face is that
potentially active purchasers of your business is worth before agreeing
once at the stage where an Indicative
Recruitment Businesses but also know of to any formal meetings!
Offer has been made, the Vendor is so
potential buyers who may be interested if enthused & committed to the process (&
the ‘right’ opportunity arose (which is Indicative Offers: idea) of selling-up, that the Vendor
really like having your live vacancies and becomes very malleable and significantly
your speculative mailing list for a good If your intermediary does a good job, more likely to accept a PE not of 8 times
candidate). they may well generate ‘interest’. the PBIT, but perhaps 7 or even 6?
By that, we mean that they have
approached a potential purchaser and
that potential purchaser has requested
Words To Learn Today:
more information and formulated an
indicative offer. Information
Memorandum
An indicative offer is presented to the Indicative Offer
intermediary who then contacts
Chubby – who gets way too excited at Intermediary
this! Completion
This is an offer in name only really – it is
subject to due diligence (remember that
phrase?) and is often a device for Potential purchasers recognise that
sounding out a Vendor. vulnerability and the DD team will be
itching to exploit it!
Almost always, whatever the Indicative
Offer is (e.g. a PE based multiple of 8 But, an indicative offer is a formal
times the PBIT of the business) it is likely approach by a would-be purchaser & is
that if a sale eventually took place, the great news! At last, something which
actual sum paid to the Vendor will be even Chubby can appreciate!
There are ‘good’ Brokers and ‘smarmy’ less!
Brokers!
So, what would you expect your A purchaser may well be happy to
intermediary advisor to do? potentially pay the full price of an
indicative offer but the business that
Well, at a minimum, they must;
they have expressed an interest in
would have to be perfect!
Demonstrate a significant
knowledge of the Recruitment
industry. The purchaser would need to complete
their entire due diligence process and
Never circulate or advertise a object to nothing that they uncover!
business without Chubby’s consent.
This is highly unlikely and Vendors
Seek a signed confidentiality should be aware that an indicative offer
agreement from Chubby. is no where the same thing as hard cash!
Qualify all potential purchasers. Any Due Diligence (DD) team sent into
the business of a Vendor will be sent to
Subsequently supply information that business not only to verify the Due Dilligence is all about squeezing
(IM) to appropriate target buyers. quality of the business (so that the the price!
11

12. Costs?: You are likely to get your money OK but
at what price?
OK, so here we are at the stage where an
indicative offer has been made for your What will you need to promise (&
business as a result of the IM generated deliver) to earn that pay day?
and distributed by your intermediary.
Next time we shall find out!
You have already spent considerable
time & money getting to this stage but
now you need to spend more! 

It is time to make sure that you have
proper legal representation as well as
the services of an Accountant (to cover There is always a catch somewhere!
your tax issues).
What Next?:
Spring
2012
Like anything else, this expert OK, so now you need to complete – get BLAST OFF!
entourage can be as cheap or as the deal done and the money in the Just confirmed! SSG is
expensive as you feel is appropriate – bank! very excited to confirm
Mobile Technology
the launch of a high end
but again, this is really not the time to (100k+) Contingency
worry about trying to save a few The key word is now ‘Completion’ and Recruitment business
specialising in Mobile
pounds. as you would have expected, Technology. From
Programme Managers
completion is not easy. to Technical Guru’s,
our 40+ Recruiter
You are already committed and need to certainly has earned
the right to launch
push through that commitment to a It is fraught with danger – not just in her own business
conclusion. finishing off the ‘deal’ but in making sure after ‘all these years’
(as she puts it!)
that you are careful in what you wish for For more info, contact:
– what happens once you have sold clare@supportservicesgroup.tv
Get the experts in! your prize asset?
QUALITY, CARE, INTEGRITY
RECRUITMENT OPPORTUNITIES
Recruitment Consultant- Recruitment Consultant - On-site Recruitment
Cardiff Trades & Labour Consultant - Shotton
Technical & Engineering Trades & Labour On-Site
Basic salary to £30K Basic to £28k Basic salary to £22k + Bonus OTE £30k
Generous bonus scheme Uncapped commission structure 25 days holiday
Warm desk Warm desk Excellent training and on-going support provided
Supportive environment with mature approach Exciting growth stage The Role & Requirements
Autonomy to run your own desk - contract, Active database of clients and candidates Build relationships with clients and staff
interim, perm or dual Productive and team focused environment Recruitment and Registration of candidates
Large database of experienced candidates - Genuine opportunities for career progression Training and Induction of agency workers
professional, technical and managerial excellent support and every opportunity to excel Daily register checks
National and local clients, including blue chip Competitive salary, superb commission Attending client meetings to ensure client
businesses structure satisfaction
First class training and on-going support
0845 269 6195 0845 269 6195 0845 269 6195
info@freshappointments.co.uk info@freshappointments.co.uk info@freshappointments.co.uk
Snr Recruitment Consultant - Recruitment Consultant - Snr Recruitment Consultant -
£35k + Uncapped £25k + Commission £26-32k
Commission + benefits
CENTRAL LONDON SLOUGH SUFFOLK
IT into Engineering Healthcare, Industrial and Catering Professional Staffing Sectors
Full 360 Role, Initially supervising Team of 3 Established agency - 20+yrs Professional Team working from quality offices
Providing Perm & Contract staffing to the Taking responsibility for a Perms desk Boutique agency offering a generous bonus
Engineering markets Supplying Admin, HR, Call Centre Staff scheme & profit share
Reporting to Regional Sales Director - lots of 360 Recruitment Consultant role securing new Run a successful desk in professional staffing
autonomy/responsibility business wins sectors - Finance, HR, Engineering
It is planned that the division will grow to 8 - 10 Full Training Excellent career development potential
heads Lots of autonomy to grow business and Benefits include free parking and Health
Fast-track career progession to Division maximise your earning potential Insurance
Manager/Sales Manager (full P&L responsibil- Opportunity to take full control of your desk in a
ity) non micro-managed culture
0845 474 1624 0845 474 1624 0845 474 1624
kcardosi@ccgassociates.co.uk kcardosi@ccgassociates.co.uk kcardosi@ccgassociates.co.uk
12

13. The SSG Launch Process
Why a Good Business Launch
never really ends!....
Think about the well known proverb – Apparently these are two distinct phases
look after the pennies and the pounds will and apparently we see the end of Stage 1
look after themselves. as the start of Stage 2.
Well, the start of a new business is a little The reality is something very different of
like this. course and that reality recognises very Without spending significant time
clearly that without a formal and (throughout the Launch process)
If a company is launched well with great comprehensive business launch, it can be understanding the personal situation of
attention to the small details, then it has a very tricky providing an equally formal our Recruiter Clients it is unlikely that we
better chance of being a successful and comprehensive support facility. will be able to broker the best on-going
business – able to weather the inevitable support in terms of payroll, factoring,
storms. For example, much of the Legal & banking and tax.
Compliance work traditionally associated
Common sense stuff. with the launch of a new business is in fact Creative Work:
probably more concerned with ensuring
From time to time, potential Clients will that the required building blocks are in Come on SSG, why not just jolly-together
wonder why SSG feels the need to cover place to not only run the ‘back office‘of the a basic web site and run off a few
so many seemingly trivial & diverse launch recruitment business but also in place to Vista-Print Business cards?!
elements – does it really matter if the VAT support the personal tax situation of a
number is applied for on ‘Day 1’? Recruiter who just so happens to own a What more does any start up business
Recruitment Business! need?
Why do we need to ramble on about
Restrictive Covenants or compliant Terms Again, traditionally SSG likes to Of course, we fully appreciate the urgency
of Business or the detail of Corporation compartmentalise the launch process of a with which many of our start-up ventures
Tax – why can’t we just build the web site new Recruitment business into neat, little need to begin to trade and generate
and provide access to the job boards?! ‘bite sized chunks’ which we conveniently placements – we are just as anxious that
label as: placements are made too!
As you probably already know, internally
SSG will apparently divide our work with But the branding of a business is a journey
any Recruiter into two stages – Stage 1 is Legal & Compliance
Creative Work & which needs to start at the right point,
of course ‘The Launch’ and Stage 2 which is always a considered and careful
represents the period of ‘On-Going Accounting Structures
development of logo, business cards,
Support’. email header and Company Web Site.
(By the way, should you ever want to tease
any of the Launch Team, ask them to This is just the start of the journey of
explain why we talk of about the ‘Power of course & as we progress to on-line Video,
Three’ – which is nothing to do with a new PDF Brochures and Presentations & so on,
American Motivational Movement but the development of your business can be
more to do with the incessant list making traced back to the fundamental roots of
& internal compliance designed to ensure that first meeting with SSG.
that nothing is missed!).
Legal & Compliance: Accounting Structures:
You will recognise most of the processes Ok – we agree that it takes a strange sort
involved in the Legal & Compliance side of of Recruiter to demonstrate genuine
the launch of a business (e.g. Name interest in many of the accounting
checks, trademark checks, Company processes undertaken throughout the
registration, Bank accounts, VAT, Inland launch process!
Revenue & so on) but might overlook the
importance of Data Protection, Money Even we find it difficult to share Darren’s
Laundering or challenging the Credit team’s enthusiasm for VAT, Corporation
“We all love a good launch!” Rating of our Recruiter Partners. Tax, P&L’s and Debtors Days!
13

14. However, to be fair to our Number we just go on and on and on.
Crunching friends, the time spent with
each new business in understanding the But I am guessing that you are beginning
Accounting process is very likely to not to know that already!
only help the new business to save money Why not give me a call to chat through
(through proper expense claim how we can continue to re-launch your
procedures for example) but also to business with you?
ensure a good cash flow of the new
business – or a tax saving process at the There are probably many fresh ideas, new
end of the Company financial year. processes and innovative services which
may not be working to the advantage of
It all counts and the detailed launch your business.
process will ensure that the on-going
support is maximized. My number is 01442 200 956.
We have plenty of experience of doing
WHY TELL YOU THIS NOW? just this and have dealt with many queries
Careful planning avoids costly errors
later on over the years.
Throughout the launch process, SSG will
encourage you to concentrate on all of If we don’t know the answer to
the finer details of running your own individual elements of the launch process something, we have, at our fingertips,
business. – however small – that your company has experts in legal, financial and training
the best chance of success. who will be able to help.
We ask that you pay particular attention
So, throughout the launch process, you Don’t be afraid to ask for help or to flag
to all the tasks involved in the launch
can help in many obvious ways - any problems to us. Make sure that you
process, to help us all to ensure that your
including: get your company off to a flying start!
business is set up with solid foundations.
1) Taking care to complete forms and
We know that you will make sure that all return them to SSG in good time so that UK ECONOMY UPDATE
of your new end-Clients will be given we can organise bank accounts, data 2012 is starting pretty well it would
properly branded & up-to-date T&C’s for protection etc. seem with Inflation Down to 3.6%
example. (from over 5% in the last quarter of
2) Keep a good track of expenses, logging 2011) & Interest Rates set to remain at
All of this ATD (Attention To Detail) will information and keeping receipts so that historically low levels (0.5 of 1%)
give your applicants complete confidence expenses against the business can be throughout the year.
in you throughout the recruitment easily claimed. This solid data coupled with a
process. slow-down in the growth of
3) Don’t over-complicate the logo design unemployment and an easing of the
and the website – remember these are Eurozone crisis is generating a
Candidates will happily register with you,
selling tools – they won’t make you positively balmy business atmosphere!
reassured by the fact that you are a
money! Against this raft of good news is the
legitimate company with a carefully
constructed & well branded website. general uncertainty that we have all
4) Pay careful attention to your terms of
laboured under since the Lehman
business and prepare these as soon as
But, what happens if together with SSG collapse back in 2008 & a suspicion that
possible during the launch process it isn’t all over yet.
you fail to progress the launch of your
business through the on-going support 5) Invoice regularly and keep in touch But with the UK set to avoid a
process? with the Accounts department of SSG. double-dip recession and UK growth
Remember we are happy to act as credit projected at 3% in 2013 things are on
What happens if you fail to recognise the control for you and chase for the up.
need to update this or modify that? non-payment of invoices. Specific data of over 100 Recruitment
Companies confirms a very positive
What happens if you fail to progress the 6) Ask for help on the legal or financial level of optimism without that
launch of your business with a new side if you are running into difficulties. optimism translating into significantly
on-line video presentation? higher placement numbers than in
But – more than this (much more in fact) 2011- yet!
What happens if you fail to investigate you can help your business to be ‘Even for the most cautious amongst
fully the fresh offerings of SSG? constantly launched (throughout the us, the Recruitment Industry
on-going support stage) by responding to continues to recover with many of us
Yep, you guessed it – even with the most seemingly daft requests (usually from the now familiar with the changed
basic understanding of business algebra - Accounts team!), by looking closely at landscape’ (David Jones Owner of SSG)
a fail + a fail + a fail + another fail tends to what new services are available from SSG, ‘Our advice is to focus on the basics
lead to a failure! by communicating your anxieties to SSG, and remember that placements are
through sharing your War Stories, your made by putting candidates in front
HOW YOU CAN HELP? successes and so on. of clients & not by worrying about
Greek Bailout Conditions’
It is really by paying attention to all the The launch process never really ends –
14
X

15. A HANDY INDEX OF CATALOGUE ARTICLES
SUBJECT WHERE WHEN CATEGORY SUBJECT WHERE WHEN
CATEGORY
Backing Up Data Page 5 September 2011 BOOK REVIEWS Making A Fortune Page 18 September 2011
IT Matters
Google+ Page 5 November 2011 Starting Up Tough Times Page 26 November 2011
Skype Page 5 January 2012 The story of Innocent Page 24 January 2012
Credit Control Page 9 September 2011 IDIOTS GUIDES Eurozone Jargon Page 10 November 2011
ACCOUNTING
Monthly Accounts Page 19 November 2011
Claiming Expenses Page 15 January 2012 FRUSTRATIONS Social Media Page 14 September 2011
Year End Stuff Page 16 February 2012 Double Dipping etc Page 24 November 2011
What is your P&L about? Page 18 February 2012 Banks Who Won’t Lend £ Page 8 January 2012
Accounts & Accountants Page 8 February 2012
VAT Page 12 September 2011
TAX
VAT Inspection Page 4 February 2012 TRAINING Mike Walmsley Page 8 September 2011
Corporation Tax Page 21 November 2011 Free Training Resources Page 20 February 2012
Entrepreneurial Relief Page 25 January 2012
PAYE & NI Page 16 January 2012 NEW FACES Catherine White Page 15 September 2011
Challenge the Tax Man Page 6 February 2012 Jane Fisher Page 12 January 2012
Recruiters & the Economy Page 6 September 2011 NEW SSG OFFERING Video Production Page 4 September 2011
SURVEY RESULTS
Banks are all the Same Page 7 November 2011 Vacancy Spider Page 4 September 2011
Credit Card Payments Page 4 January 2012
Recruiter Isolation Page 10 September 2011 Cash Flow Tool Kit Offer Page 17 February 2012
SPECIALIST ARTICLES
3 Ways to Start-Up Page 6 November 2011
Why Doom & Gloom? Page 13 January 2012 VACANCIES Refer a Recruiter Page 18 September 2011
A Good Business Launch Page 13 February 2012 LinkedIn Guru (SSG) Page 2 November 2011
Increasing Headcount Page 25 February 2012 Relationship Manager (SSG) Page 18 November 2011
/recenteditions.htm
Equity + Salary Recruiter (SSG) Page 2 November 2011
Huge Demand Page 15 September 2011 Recruitment to Recruitment Page 2 January 2012
SELLING UP
Part 1 – Some Basics Page 14 November 2011
Part 2 – Grooming Page 9 January 2012 COMFORT FOOD Mega Cookies Page 9 September 2011
Part 3 - Finding a Buyer Page 10 February 2012 Crunchy Nachos Page 22 November 2011
Lemon Pasta Page 17 January 2012
AWR Page 16 September 2011 Cheese Grill Page 24 February 2012
LEGAL & COMPLIANCE
LinkedIn Page 23 November 2011
Reasons to Trademark Page 18 January 2012
Introduction Page 12 September 2011
SSG PhD Why not keep your eyes open
Develop a Press Release Page 20 January 2012
BRANDING for future updates?
Professional Videos Page 9 February 2012
A Worthwhile PR Strategy Page 21 February 2012
15

16. Year End Accounts and Annual Returns
Year End?
We’re only in February!
As the owner of a thriving Recruitment
Business, it can be particularly confusing
to understand the difference between To make this all happen, SSG will provide
year-end accounts & annual returns – year end packs which are passed to the
after all, they are both yearly obligations nominated accountant.
which you are legally required to
complete. The figures at year end are reflected in the
monthly management accounts so it is in
In amongst placements, drop outs(!), your interest that you read and
interviews, staff issues and endless other understand what is in the MMA.
paperwork, you are supposed to not only
compete these annual accounting tasks The external Accountant which SSG
but somehow find time to actually recommends will send you the following
understand what they mean! It can be documents:
tough.
Two sets of the full accounts, one for
ANNUAL RETURNS you and one for your records.
It’s always later than you think
An annual return is required by Law to be
Abbreviated accounts which are a
filed at Companies House on behalf of
YEAR END ACCOUNTS short version of the balance sheet
your company.
and notes for Companies House.
The return confirms the basic information Each year your limited company has to file
CT600 form for HMRC (Corporation
that Companies House holds for the financial statements and produce
Corporation Tax Computations. Tax calculations).
company.
This includes the registered office, the As you probably already know, at SSG we Declaration for you to agree the
directors and shareholders. have an excellent external Accountant accounts.
which we recommend to our clients, but The Accountants will also advise how
The return covers the first twelve months of course, it is still your prerogative to much corporation tax is due and the date
from the date your company is choose any Accountant that you wish to when it needs to be paid by.
incorporated and is made up to that help.
‘birthday’ every year thereafter. The abbreviated accounts form the CT600
The Accountant will produce on your and this declaration will need to be signed
Sounds complicated, but actually the behalf and perform the following: and returned to the Accountant for filing
process of filing an Annual Return is very with the relevant Government bodies
easy and as your Company Secretary, SSG before the expiration of the filing date to
helps with the process. A brief check of the validity of the avoid any late-filing penalties being
figures produced by SSG. incurred.
Unfortunately there is a charge paid to
Companies House for filing the return, but Produce the financial statements for The first set of accounts for any new
this is a business expense and not a submission to Companies House business will need to be filed with
personal one. (abbreviated accounts), and the Companies House within 21 months of
relevant government bodies the date the company was incorporated.
The easiest way to file the return is online
and at present costs £14 which is £26 Prepare a Corporation Tax After this first submission by any Limited
cheaper than filing a paper one at £40. Computation Company, the subsequent accounts will
need to be filed no later than 9 months
Please note that it is important to file your Submit the tax computation to the plus 1 day after the year-end date – e.g. if
Annual Return as failure to do so could Inland Revenue your year-end is the 31st January, the
lead to prosecution and a fine, plus your accounts must be filed no later than 1st
credit rating could even be affected. Calculate the Corporation Tax due. November.
16

17. The penalties for late filing can be very
high with Companies House fining
New Weapon!
between £125 and £375.
HMRC will charge daily interest on top of a
percentage of the corporation Tax due
which can increase the bill dramatically.
WHAT NEXT?
No need to panic or do too much either!
‘The Cash
As you know, SSG will contact you at the
appropriate time to talk through what
information we might need to get the ‘ball
Flow
rolling’.
Having said that, it is always good to be
prepared – so, if have any queries on the
Tool Kit’
any of the points raised in this article,
please do not hesitate to contact either
OK, you may not be able to guarantee In conjunction with your Monthly
me or the ‘big cheese’ Darren Hulbert.
oodles of placement revenues every Management Accounts, this new Cash
You know the telephone numbers of month but with a little help, you can Flow Tool Kit will guarantee that you
course but just in case – Gill 01442 certainly help to control where all of know exactly where your ‘business is’.
200 965, Darren – 01442 200 961 the money goes & when!
No need to worry about guessing
Cash Flow is crucial to any business & what might happen, now you can
J
JOKER! £50
the cliché that Cash is King is never model any financial scenario with a
Neil from Wolverhampton
more true than it the Recruitment click of a button.
p
Q: A Recruitment Consultant
was asked what the capital Industry.
of California was
A: “That’s easy” he said “It’s C” HOW DOES IT WORK?
A placement isn’t a placement until
the money is banked as we all know,
WINNER! but controlling how your cash flow SSG will load your current financial
affects you as a business and as a data into your Cash Flow Tool Kit.
person makes everything that bit
easier.
All you need to is to complete a simple
‘front sheet’ (what placements do you
J
JOKER! £50 hope to make, where would you like to
SSG has generated a brand new Cash
spend money etc).
Flow Tool Kit designed exclusively for
Amy from Stratford
Q: How do you know if a
Recruitment Consultant has you – charting where your money is,
been in your office?
what money is available to develop Instantly, your cash flow will be
A: There’s Tipp-ex on your your business and how you can generated.
y
computer screen
forecast a real business budget.
WINNER! If you change your mind just change
the front sheet.
Monthly Cash Flow Summary
It is that simple.
Profit & Loss Projection Tool
J
JOKER! £50
Project Income & Model What-If WHAT NEXT?
Angela from London
Q: Why can’t
Consultants
Recruitment
make ice
scenarios
cubes?
Contact Darren Hulbert (01442 200
A: They always forget the Plan your Tax Payments 961) to order your free Cash Flow Tool
g
recipe
Kit.
WINNER!
17
X

18. The Voice of Vikki
mp le!
ACCOUNTS Made
& a tiny bit
What is your P&L & what does it
Si Ways of increasing your Cash Flow and
therefore your P&L looking healthier
mean? could be:
Invoicing your Customers/Clients as
Enjoying your Monthly Management soon as your candidate has started
Accounts every month as I am sure that working, prompt Invoicing means
you do, I am convinced that you will also prompt payment!
have a very good understanding of what
your Profit & Loss précis is all about, but Not rushing finding a perfect
over the next few pages I thought that it candidate to fill your vacancy, you
might be helpful to explain in more detail don’t want to have to raise a credit
what one can learn about your business note!
from the ol’ P&L, so you can use it to its full
potential!! Credit checking potential
One thing to remember when perusing
Customers; let’s make sure they can
over your P&L whilst drinking your cup of
So, as a Limited Company you will have to afford to pay you!
coffee, is that it does not show whether
produce a set of Year End Accounts every
your Sales Invoices or Purchase Invoices Chasing any debts owed to you as
year and submit them to HMRC.
have been paid and therefore is not a soon as they become overdue!
Your Accountant will produce these for reflection of your Cash Flow for your Negotiate terms of payment not
you and calculate your amount of Business. only with your Contact but with
Corporation Tax to pay to HMRC (if any is Your Cash Flow is very important for your Accounts who will be paying your
due). Business; you need cash for your Business Invoice!
You know all of this of course and you also to survive. Keeping in contact with your
know that as a SSG Client, we are there to If your cash is flowing into your Business Suppliers, maybe adjusting your
undertake this work for you. faster that it flows out of your Business credit terms to match your sales
then you will be running a healthy invoice terms.
Within the Monthly Management Business.
Accounts which SSG also produce for Factoring your Sales Invoices, a
your business, the P&L (Profit & Loss) But if however your Cash is flowing out of proportion of your Invoice will
Statement records your Monthly & your Business quicker than it’s flowing become available straight away
Annual Sales Income (Revenue) less any into your Business you will struggle to allowing a good cash flow.
expenditure for Cost of Sales /Business pay your Suppliers for Rental of Offices,
Expenses and shows whether you have Advertising Costs, etc and struggle to pay Ok, so the Top Part of your P&L (found
made a Profit or Loss over a specific your Staff! on Page 4 of your Management
period of time. The P&L is not to be confused with your Accounts as below) shows the Total
Cash Flow for your Business. Income for the month and also the Total
All makes sense so far! Income for Year to Date.
The P&L is a statement of your Accounts
Specifically, your P&L shows you: over a specific period of time whereas This is the total amount of Invoices you
your Cash Flow relates to the amount of have raised to your Customer/Client for
Temporary or Permanent Placement of
How your Business is performing Cash flowing in and out of your Business.
Candidates, Sales Invoices Net of VAT
over a specific period of time.
(without VAT).
Still unsure about P&L?
Incomings (sales revenue) and It also shows your Direct Expenses
?
Outgoings (cost of sales, overheads relating to your Sales Invoices. Expenses
& expenses) and whether you have which are also known as Cost of Sales.
made a Profit or Loss.
Basically, any expenses that relate
directly to you raising your Sales
A summary of your Sales Invoices
Invoice.
raised to your Customers/Clients
and your Purchase Invoices made CALL US TODAY! Once your Direct Expenses are taken
from your Suppliers/receipts for 0845 475 9449 away from your Total Income you are
goods left with your Gross Profit!
18

19. The ‘Top’ of your Profit & Loss Account
INCOME Actual £ Year To Date Actual £
Recruitment Fees - Temp 5,277.00 Recruitment Fees - Temp 61,296.89
Recruitment Fees - Perm 2,782.00 Recruitment Fees - Perm 18,887.00
TOTAL INCOME 8,059.00 TOTAL INCOME 80,183.89
DIRECT EXPENSES DIRECT EXPENSES
Recruitment Staff 0.00 Recruitment Staff 0.00
Recruitment Staff - Comm 0.00 Recruitment Staff - Comm 0.00
Supply Staff 4,455.89 Supply Staff 48,686.94
Sales Advertising 50.00 Sales Advertising 324.00
SSG Venture fees 639.86 SSG Venture fees 6,691.80
TOTAL DIRECT EXP 5,145.75 TOTAL DIRECT EXP 55,702.74
GROSS PROFIT/LOSS 2,913.25 GROSS PROFIT/LOSS 24,481.15
The bottom half of the P&L (found on Page 5 of your Management Accounts as below) shows any other Expenses incurred by
the business for the period, also known as Overheads.
Once these expenses are taken away from the Gross Profit you are left with your Net Profit which is your Profit after all your
expenses are taken into consideration. If at your Company Year End you are In Profit, you will pay 20% of this Profit in
Corporation Tax to the Tax Man! (Why not re-read the Corporation Tax Article in previous editions of the Dark Side?)
The ‘Bottom’ of your Profit & Loss Account
GROSS PROFIT/LOSS from previous page 2,913.25 GROSS PROFIT/LOSS from previous page 24,481.15
ADMIN EXPENSES ADMIN EXPENSES
Directors Salaries 658.41 Directors Salaries 4,480.46
Administration Wages 0.00 Administration Wages 0.00
Recruitment Fee 0.00 Recruitment Fee 0.00
Advertising 0.00 Advertising 0.00
Rent & Rates 150.00 Rent & Rates 1,050.00
Light & Heat 0.00 Light & Heat 0.00
Insurance 0.00 Insurance 262.50
Repairs & Renewals 37.95 Repairs & Renewals 113.88
Phone 69.02 Phone 775.63
Printing & Stationery 0.00 Printing & Stationery 137.22
Motor & Travelling Exp 0.00 Motor & Travelling Exp 64.92
Legal & Professional 0.00 Legal & Professional 0.00
Consultancy Fees 0.00 Consultancy Fees 0.00
Management Charges 0.00 Management Charges 0.00
Sundry 694.78 Sundry 1,898.45
Finance Charges 548.94 Finance Charges 5,101.86
Factoring Recharge 0.00 Factoring Recharge 0.00
Depreciation 0.00 Depreciation 0.00
TOTAL ADMIN EXP 2,159.10 TOTAL ADMIN EXP 13,884.92
Net Profit/Loss 754.15 Net Profit/Loss 10,596.23
19

20. KEEP AN EYE OPEN
FREE Training Resources
So what should you look for in your P&L
Statement and what can you do with it.
Recruitment & Business
If you are making a loss then maybe look
at ways to reduce your Cost of Sales,
negotiate better deals on your Sales There are many expensive tools that Some refinement is needed and you
Advertising & Job Boards. you can purchase to ‘train’ in any will need to trawl carefully for
aspect of Recruitment or Business, but information that might be relevant
Reduce your Overheads by keeping a wouldn’t it be nice to have access to a to your current circumstances, but
close eye on your Business Expenses, comprehensive Resource which you get the idea?
taking out any unnecessary expenses. continues to grow but costs you Still with me?
virtually nothing?
Ok, well why not try a few of the
If you are making a Profit how you can Well, of course it would! following introductory search
improve on this. strings?
So, SSG is about to embark on the
Obviously you are working hard and development of just such a Training UK Recruiter tips
Business is good but there’s always room Resource - just for you! Hiring recruitment Consultants
for improvement. KPIs for Recruiters
What follows is a brief overview of
what you can access right now & a few Using Jobs Boards
Maybe look at outsourcing your skills to Linked In .v. Job Boards
other Businesses, charging a Consultancy ‘tasters’ of what it to follow as we build
a proper resource for you. UK Recruiter Training
Fee.
In addition to searching for help
Keep networking with new and Old regarding being a Recruitment
Customers/Clients, a new Placement may Mike Walmsley Consultant, what about using You
be just round the corner! Tube to gain a commercial
understanding of the Economy, your
If you are looking to apply for a Mortgage, You all know by now the on-going Clients and the Tools you use every
take out a loan or any other financing for access to Mike Walmsley which all SSG day?
your Business you would like your P&L to Clients enjoy.
Here are some suggestions for
be in a healthy Profit position so I would This inclusive access comprises three commercial search strings for the
suggest you try the above ways before key elements: Economy :
you do so to make your Business look as
Profitable as it can do at this point in time. 1) DVD Library of Recruitment UK Economy News
Training Tutorials. UK Inflation
Now you have all read this very interesting UK Unemployment
piece on your P&L you will dive straight 2) Live Webinars – 30 minute sessions UK Interest Rates
into your Management Accounts, but covering key areas.
Here are some suggestions for Tools
what page can you find this on......... pages 3) Live Training – intensive 2-day Training:
4 & 5 with a breakdown of your Monthly course in London.
P&L on pages 6 & 7. Basic Excel
For more information, reminders or Basic PowerPoint
A FEW CONCLUSIONS help regarding Mike and what he can Basic Skype
offer you, please contact Carly Basic LinkedIn
Your P&L should be your “friend” and Hastings on 01442 200 946.
not a part of your Management What about some search strings for
Accounts you flick over with a mere ‘trends’?
passing glance!! You Tube
UK Mobile Recruitment
UK Recruitment Apps
Cash must flow into your Business You Tube is a laugh, a giggle and a UK Recruitment Forums
faster that it flows out or your place to post saucy videos of the girl
Business will become insolvent! who dumped you at University – but, I guess that you are getting the
it is so much more too! point of course.
Look at ways of reducing your So, before you worry too much
expenses and increasing your Via the home page about what others know or what
Income which will both increase (www.YouTube.com), just try a few you don’t know that you ought to
your Profit. general searches around ‘Recruitment know, why not just commit to 15
Consultant Training’. minutes every day to ‘train’ yourself
Make any adjustments to your P&L using a free tool?
before applying for any Financing. You will be amazed at what is So, here are you first couple – Mike
available for free. Walmsley and You Tube.
20

21. Worthwhile PR Strategy
A Proper Attempt at PR!
Welcome to the second in a brief series of
articles designed to provide you with the
WHY BOTHER?: What do they have in common? It is not
the message but more how often you
basics of Recruitment PR. have heard the message!
They say, like any other expert service that
Last time (January 2012) we spoke about Public Relations is only expensive if it isn’t If you still don’t believe me, just ask my
the three key things that all independent done right! However, they also say that dear old Mum, a Milky Way does fill you up
Recruitment Companies ought to focus England can win the World Cup (so what between meals and a Mars a Day makes
upon, in an effort to constantly raise their do they know?). you a fat pig (it doesn’t help you work, rest
profile: or play).
Nevertheless, there are numerous
1. Advertise examples of Big Brand Recruiters being Both examples of a message becoming
2. Publicise adept at spending money to create an real just because you keep on hearing it.
3. Network image – let’s take a few great household
names such as Michael Page or Select or Our message ought to be that we launch
Hays. What do we really ‘know’ about recruitment businesses every month and
Advertise Publicise Network these guys? Do many of us really have an that every month, there are great
insight into their professionalism? Who Recruiters who decide to work with us to
the hell knows if their Recruiters sit at their launch recruitment businesses - every
desks in their smelly underpants? month. So, which of you doesn’t now
know that SSG launch new Recruitment
I doubt many of us really know for sure, Businesses every month?
but most of us would tend to assume that
The Power of Three they are ‘Premier League’ recruiters whilst What that information conveys is our
the local high street independent remains CORE MESSAGE – not the quality of our
Of course we all know what we mean by purely Conference League – South, service or the cost of our service or the
‘Advertise’, although it is not always the Division 2. success of what we do – just the fact that
case that advertising should be 100% we have a core message – i.e. that we
focussed on attracting current candidates But let’s also remember that PR is only launch Recruitment Businesses. For SSG,
for your live vacancies! useful if it is done properly and for the our message is sustainable.
right reasons. There is very little point in
Advertising needs to convey a message convincing the wider recruitment So, if you have a sustainable message, the
about how your business operates. For community that you are a fantastically next thing that you need is to have a
example, how would you judge a professional Recruiter if in fact you simply sustainable route to your market. In other
Company whose adverts were poorly blast out CV’s ‘willy nilly’ (& yes, Willy Nilly words, you need to able to get that
written, lazy in detail and impolite? is a proper phrase, all too rarely used in message out to the relevant community
leading PR circles). in a cost effective manner.
Moving on, we also all recognise the
modern mantra of ‘Networking’ – how can In other words, your PR objectives need to
a modern Recruiter possibly survive be clear and the method by which you
without endless Tweets or regular generate your PR needs to cost effective
LinkedIn updates? Did that sound and practical and just as important, the PR
sarcastic? strategy needs to be sustainable.
Well, cynicism aside, it is certainly
becoming less acceptable to ignore Social SUSTAINABLE?:
Media and it certainly does not pay to
bury your head in the sand with regard to
the importance of your chosen market They also say that ‘good’ PR is like water
getting to ‘know you’, before they might torture – you don’t notice it until it drives
‘hire you’. you insane!
But let us leave advertising & networking For example, think about the worst
for another time - today, we are going to adverts in the World – the most irritating
continue to focus on that old commercial on TV or the most pompous
imponderable – Public Relations (or ‘PR’ or self promoting ‘Industry Experts’ in the Bright PR news
‘Publicity’)! country. & sustainable!
21

22. There is clearly no point to your PR activity In other words, if I spend £1 on I guess the point that needs to be made is
if your message is clear but you cannot Advertising or £1 on PR or £1 on that a ‘complete’ business needs to think
afford to generate that message. It is also Networking, how much does the business about where revenue comes from & also
important to remember what the cost of actually make? how revenues are generated – not just
your PR really is – time and money tend to how much revenue is generated.
be equally important to a business which Playing the game for a moment, why not
has a CORE MESSAGE worth promoting! pretend that our imaginary Recruitment Is it enough to hope that your Company
Company (www.Scatter-Gun.Com) reputation will permeate the thoughts of
invoiced £10,000 every single month. quality candidates and attractive
We also considered last time the
employers? Probably not & yet that is
alternatives of DIY PR & of paying an Each month, Scatter-Gun also spends what the vast majority of us do – hope.
expert team to generate your PR. £1,000 on traditional ‘advertising. Each Nothing else.
month, the big cheese at Scatter-Gun
We are going to assume that fledgling attributed £5,000 of the fees generated by How many fledgling Recruitment
Recruitment Ventures are more interested the business directly to candidates Companies invest in a PR strategy and if
in the DIY solution, but that does not procured via the £1,000 of advertising. Mr they do, what are their objectives and are
mean that the importance of a Cheese happily defines his ROI (Return On they relevant to the No 1 overwhelming
sustainable route to market is any less Investment) for his advertising at a objective of all businesses – which ought
important. healthy 5:1. to be, to make a profit.
Profile
Position Engage
Improve PR Sustainable
R.O.I Objectives ‘PR’
You may have a CORE MESSAGE which is
all about quality, integrity and honesty
Mr Cheese also knows for sure that as a
result of his incessant ‘wining and dining’
SPECIFIC OBJECTIVES:
but you need to generate that message in of his local end-clients another £3,000 is
a sustainable way – otherwise you don’t generated. The cost of these endless It is quite easy to draw up a list of key
really have a core message at all! lunches is £500 per month and so Fatty (as objectives which any relevant PR Strategy
Mr Cheese is now known) says that his ROI ought to address. Most Recruitment
for Networking is a super 6:1. Companies live and (often) die by the
same criteria and the same key drivers
KEY OBJECTIVES: So, if advertising brings in £5,000 and determine the success or failure of the
networking brings in another £3,000, it business.
might be plausible to suggest that the
Forget all that ephemeral nonsense about additional £2,000 of revenues is somehow So, what can we assume are your PR
branding, culture & market penetration a result of the vague and tricky concept of Objectives then?
for a moment. I mean, let’s face it – the PR – in other words, as Recruiters when we
only worthwhile business objectives for don’t know exactly where our candidates Position,
your PR efforts revolve around making or clients find us, we have to assume that Profile,
more money at some point as a result of the reputation of the business helped to Engage,
that PR effort. generate that business? Improve ROI &
Generate sustainable PR
Again, if we consider the three ways in So, for every £10,000 of generated
which you ought to be raising your business:
Company profile, do you know how much After all, it is important to try to position
do you spend on each route and can you Advertising 5:1 (£5,000:£1,000) your business as a Recruiter of quality,
(as yet) accurately determine your return Networking 6:1 (£3,000:£500) importance and relevance within your
on that investment? PR ?? (£2,000:£0) chosen industry.
22
X

23. It is also important to engage with your In other words, if your prepare these
existing clients and candidates to canvass stories in advance as part of your
their opinions about key industry issues. sustainable PR Strategy, you can develop
a ‘story’ which will be attributed to your
It is also important to increase your ROI great business, which delivers its Core
and begin to positively attribute income Message with every story.
to your PR effort.
Forget for a moment where you would get
It is also 100% essential (& not just the data for these press release efforts –
important) that you develop a sustainable we will come to that next time.
PR route which will publicise your core
message. 98% responded that a It is also very important to develop your
good Press Release starts target list of Media contacts and to also
So, like all other Recruiters you ought to identify the difference between the media
be working towards a neat and tidy little
with a survey! themselves. For example, it is quite easy to
model – as depicted by the lovely red get a local industry news story into the
diagram on the previous page. local press.
1. The Headline
2. The Body Copy It is much harder to get that local story
A PR STRATEGY: 3. The 5 W’s and the H into the trade press.
4. The Company Info’
5. The Tie So, you need to have a database of media
Remember, we are going DIY here – 6. The Contact info’ & contacts which covers the following:
nothing spent other than sweat and tears. 7. The End
No money, no bribes and no wining & Trade Press
dining (sorry Fatty). Have a look at Page 18 & 19 of the January
Local Newspapers
edition of TDS).
Trade Associations
We are going to divide our PR Strategy Job Boards
into the following three distinct areas: It is not enough to generate a Press
Release and then email it to your contact
at The Recruiter, for example. We will define exactly how you can
Media Relations develop that database next time.
Social Media &
The Editor at The Recruiter (who really is
Surveys
called Dee Dee Doke by the way) is going Social Media:
to receive many similar one-off press
Media Relations:
release efforts from DIY superstars like us The second component of our sustainable
and also from sharp suited PR Men (who PR Strategy is all about the labyrinth that
Yep, you’ve guessed it. We need to
secretly imagine that they are really like is Social Media!
generate some ‘words’ which convey our
Don Draper out of ‘Mad Men’).
core message and then convince editors Love it or hate it, most of your Clients and
and journalists alike to not only bother to
What you need to do is develop a almost all of your potential Applicants will
read these ‘words’ but also publish them.
sustainable series of Press Releases which either be on Twitter, Facebook or
convey particularly relevant news worthy LinkedIn. The truth is that the whole Social
For a moment, I am going to assume that
story combined with your Core Message. Media environment is a bit of a nightmare
you recall the January 2012 PR article in
The truth is that you could prepare 3 or 4 for most Recruiters.
TDS where I went to great lengths to
Press Releases in advance and email them
define for you the ‘Magnificent 7’
through to your target Editors on a rolling ‘Connections’ do not equal ‘networks’ and
elements of a great Press Release..... (Just Tweets do not equal influence. It is also
fortnightly basis.
in case you have ‘forgotten’ the true that ‘funny’ pictures of your sweet
Magnificent 7 elements of a great Press
For example, which Trade Press Editor is little cat on Facebook rarely lead to high
Release, they are:
not going to be interested in subject value placements, but a combination of
matter such as? cynical exploitation and sustained effort
will generate positive PR across the three
‘1 in 3 Contractors confused by IR35’ or main social media.
‘April Tax rate changes good news for
Recruiters’ or In itself a significant subject, we will look
at Social Media exploitation in a later
‘Placement Fee income rises in a tight article in this PR series. But to set the
market’ or scene, it is essential that as a business
owner, your recruitment business
‘Scatter-Gun.com doubles headcount on maintains a blog, has a Twitter account
2012’ or with regular Tweets, a LinkedIn profile
exploiting InMails and Groups & ignores
Do you have any ‘Social Media now more important than the temptation to have a Facebook
“Media Relations?” Job Boards’ account!
23

24. Add Halloumi Cheese to the roll and sprinkle with a little more BBQ sauce
Surveys: ‘publicity’ ought to be both a cost to the
business and also a means by which we
Toss Rocket Salad with lemon juice and Olive oil and add to the roll
The third component of our sustainable generate income.
Comfort Food for Fed-up Recruiters
PR Strategy is all about Surveys.
We need to somehow generate a ROI for
Add some BBQ sauce and grill for a further 4 minutes
any ‘cost’ which our PR efforts incur.
Surveys are incredibly cost-effective both
in terms of the minor cash expenditure
and hugely valuable impact on clients and Specifically, our PR objectives ought to
Cut Halloumi Cheese into small strips
candidates alike.
Mix with Olive Oil, Salt and Pepper
Grill Ciabatta roll for for 3 minutes
include a positive effort at positioning our
Add some Chicken if you desire
Grill in the oven for 5 minutes
business, profiling what we do and
engaging with our clients & candidates.
Perhaps the best thing about surveys
however, is the usefulness of the
Enjoy.... Yummy!
information in generating regular Press Our PR Strategy needs to involve a
The How:
Release articles full of genuine insight and dedicated effort at Media Interaction
market knowledge. (local & trade) coupled with a considered
Social Media strategy.
Online surveys (using free online
BBQ Halloumi Cheese Grill :
software) can generate numerous media Client & Candidate contact (& useful Press
opportunities and promote your business Release content) should be encouraged
through the use of regular surveys,
1/4 Packet of Halloumi Chesse
as being concerned with your industry,
Cooked Chicken (if desired)
not just your profit line. utilising the free online tools which are
available.
Salt and Pepper
1 Ciabatta Roll
Rocket Salad
CONCLUSIONS:
Lemon Juice
FOR NOW:
The What:
Olive Oil
So, what do we know? Please take time to review this article and
re-read the January edition of TDS.
We need to identify a sustainable PR
Strategy which promotes our Core Together these words of wisdom (don’t
Pop’s Pantry
Message across a variety of press. laugh) provide the starting point for a
proper attempt to generate a PR Strategy
which will create additional income.
We know that we ought to promote our
businesses through advertising,
networking and publicity. If you really can’t wait for the next
instalment and would like to talk through
some specifics, please get in contact with
Publicity means PR and we accept that David Jones at any time on 01442 200944
DIRECTOR DESIGNATE (x2)
Dark side.tv Dark side.tv
SEPTEMBER
30k Basic 50% Equity!
NOVEMBER
2011
P
PhD in
2011
JANUARY
ww
2012
ww
45k + Bonus + 10% Equity
Nr. Heathrow Herts base for Entrepreneurship
E
w. the w. the
The Opportunity of 2011
a GREAT Recruiter www.SSG-PhD.tv
Page 18 for Details See Page 2 for Details
Happy
New
Year?....
Sometimes Fancy a PhD in
it’s hard to Entrepreneurship?
See Page 12
keep up with
How to escape the
everything ........ 2012 doom & gloom
(page 13)
Inside this issue:
Inside this issue: Banks take a bashing
Be a VIDEO Star! Selling Up! Part 1
Is AWR Evil? Corporation Tax Basics Inside this issue:
Google+ Exposed!
Business Blast Offs! Selling Up! Part Deux : 3 Ways to SYOB
The Death of Cold Calling?
Start Your Own Business Develop a Press Release : Clare is serious (again)
Who Owns YOUR Contacts?
Time to Sell Up? Meet SSG’s New Girl : Making the most of SKYPE
Very Feb
BLAST OFF! August
BLAST OFF! October BLAST OFF! Soon BLAST OFF! 2012
R N
2011 2011
R N
ENGINEERING AND RTR
COMMERCIAL AND FS
? ?
Your Best Friend
You from Home!
Unusual combination of Bob made the break and he
Great New Partnership formed by
Experienced Recruiters looking to
exploit their combined 10 years E Engineering recruitment with a
side dish of RTR work! This is a
Happy, content & safe in
the knowledge that whatever you E is doing well. You try to be pleased
for him of course, but as Morrisey
of Perm’ based Commercial and
X
business led by a Recruiter with acheive will be for you and your family.
Never did the phrase ‘work for X might sing ‘we hate it when our
U
lots of experience and lots of
U
Financial services experience. friends are successful’.Tough to
frustration about having worked someone else’ sound so silly, you’re
Clients are UK based with a focus
on salaries up to £50k
For more info, contact:
T for someone else for too long!
For more info, contact:
motivated & progressing your life
Why not call David on
T watch. It should have been you.
Why not call ‘The Samaritans’
01442 200944 to chat through or Bob (ask him for a job?)
clare@supportservicesgroup.tv clare@supportservicesgroup.tv how to break free
In case you missed it....
www.the-darkside.tv/recenteditions
24
X

25. Clare’s Serious Stuff
Increasing Headcount
When you first started your business, you What concerns do you have (i.e. what are
probably did a lot of research; on your you worried about when employing a
market, your chosen location, your new recruit?)
contractual restrictions, perhaps even on
us! What do you feel are the negative aspects
of hiring at this time?
You may have sought help from advisors
and friends, colleagues in the industry; What do you feel is a realistic figure which
you may have read books, magazines, on represents the amount of hard cash that is
line articles and other readily available at risk should you new recruit fail?
sources before you took that next step.
(This is your ‘gambling’ money and you
Why do you want to expand your
You invested a lot, in terms of time, have to be prepared to lose it)
business?
anxiety and questioning to make that final
decision – working with us to get your
(I.e. what are the motivating factors
business off the ground inevitably gave
behind this move?
you a head start.... we hope!
It might be money, it might be the need to
So...now what?
move into an office, it might be that you
are over loaded with requirements that
you want to move into a different market -
it might be all sorts of things!)
Be very honest with yourself – if the Why is
because the business is struggling and
you feel that taking someone on will
improve it, don’t do it!
Then the what?
Then the where?
Specifically, what market sector will this
new recruit operate within? Where will the new recruit work from
For those of you who have survived (e.g. the actual types of placements to be (your home? their home? your office?)
start-up and are now pretty established made? the industries & also will it be
and successful businesses, you may be 'temp' or 'perm' based?) Where will find this new recruit?
wondering how to take the next step and
grow your company beyond its current Are you looking to this recruit to generate Do you actually know who the new recruit
status. at all? - perhaps this is an admin/resourcer will be (i.e. is it an ex-colleague or will you
requirement. need to advertise etc)?
A natural progression would be to take
someone on. What resources will the new recruit need Then the when?
(including money!)?
Taking on people - whichever way you When would you like this new recruit to
choose to do it - will always mean some What revenue targets, for (say) the first start work with you?
form of investment for your business. year will you set for the new recruit (this
Investing into your business is a risk of helps to establish how long you expect to And now the how?
course and it can seem scary; after all, you subsidise the cost of the new recruit).
have spent so much time and (as the We have all come across recruitment
Americans say) ‘sweat equity’ to get the What is the ramp-up period before you agencies that have ‘employed’
business to this point, do you really want would expect your recruit to invoice? self-employed recruiters (first of all, this is
to risk it all by taking someone on who a contradiction in terms!) and to a
may not work out? What levels of revenue would you really fledgling business, this seems an ideal
hope that the new recruit would achieve scenario – take on no risk, just pay 50% of
Initially, it is worth deciding the Why? when operating at 'normal levels'? all the consultant bills.
25

26. There are a number of problems here – Both limited company and self
the main one being that National employed routes have ‘looking and NEED
Minimum Wage legislation makes it kind
of illegal to do this.
acting like an employee’ dangers as the
recent case of Weight Watchers (UK)
HELP?
Ltd v HMRC shows. You know
It is also a false way of growing a business.
The business itself isn’t really growing, you Here, consultants engaged by WWUK where
signed contracts describing
may be adding numbers to the bottom
themselves as independent we are!
line but if you are truly looking to build an
infrastructure and put in place the contractors and not the servant of
foundations on which to build an asset, Weight Watchers.
this way can result in foundations of straw They were required to pay their own We appreciate that you are busy
(just ask the pig what happened to his tax and national insurance. making placements and tracking
place when he built it like this). down great applicants.
The consultants were only paid if they
Finally, unless they are truly self employed personally conducted their own It’s what you do & what it keeps the
(and the ultimate test for this is that they meetings and they were required to metaphorical Wolf from the
are free to and do work for a number of obtain WWUK's specific approval in pretend door, but please don’t
different businesses and ‘clients’) then relation to time, date and place of any forget that we are here to help
meetings. whenever, whatever & whoever you
HMRC will be tempted to treat them as
are!
employed by your business and want to Although the contract contained an
look to you to pay PAYE and ENIC. express substitution clause, the Why not chat to us about anything
Leaders were obliged to find a suitably that comes to mind, but here are a
EMPLOYEE - THE BEST!: qualified replacement if they did not few reminders of what might be of
want to lead a meeting. interest:
Therefore, the very best way (from a legal
standpoint) is to take them on as an The Tribunal dismissed WWUK's
employee (you could pay minimum wage appeal and concluded that the Leaders • Professional Videos
and then commission or roll it all in were employees of WWUK rather than • Vacancy Lists
together) – this is better for your business self employed contractors. • CRM Software
as it grows and also from a legal and tax • Web Site Updates
perspective. • Branding Advice
• Training
Your business would have an employee; • On-Line PDF Brochures
we can help you with the policies you • Skills Testing
would need to put in place, the payroll • Business Review
and legal help with contracts etc. • Credit Reports
• Debt Management
LIMITED COMPANY - SECOND • Legal Disputes
• Job Boards
If you really cannot commit to taking on • CV Search
an employee, then the second best way to • Cash Flow Forecasts
work with a recruitment consultant is if • Expansion Planning
they establish themselves as a limited • Apprenticeship Schemes
company and then just invoice your Employees can drive you insane! • Public Relations
business for placements they make.
Here at SSG, we see part of our role to
not only help you with the logistics of In fact, we are hopeful that even if
The recruiter has to be truly independent
how to grow your venture but also to you don’t have a specific need right
which means that they really should be
play ''devil's advocate'' (in other now, we might be able to help if you
working for other people at the same
words, if we are able to dissuade you just give us the opportunity to chat.
time.
from expanding, it is probably because
deep down you don't feel that the time Why not get in touch and schedule
‘SELF EMPLOYED’ - LAST!
is right! - the 'little-person' inside you is a 30 minute call with any of us – we
saying 'don't do it!!' are especially keen to help.
The least legally solid way of working with
the recruiter would be as a self employed Your team contacts include;
consultant.
To chat through
You would have to satisfy yourself that this whole Clare Armstrong - 01442 200957
they are paying the right amount of tax expansions issue Carly Hastings - 01442 200946
and again they would need to be truly please call Jane Fisher - 01442 200956
independent and not (for example) be Clare Armstrong Vikki Buckley - 01442 200943
sitting in your office every day, have Gill Miles - 01442 200965
01442 200957
‘employee’ tools and generally acting like David Jones - 01442 200944
an employee.
26
X

27. ON THE COUCH WITH SSG
Every month, we are hoping to persuade one of our Budding Entrepreneurs to spend a little time
‘on the couch’ with SSG – detailing their experience of running their own business!
We want to know if the perception of ‘Working for Yourself’ is much different from the reality?
What were your motivations to ‘do this thing’? Has been harder? Worse, more stressful? What
have been the high points to date and what advice would you give fellow Recruiters?
This is a great opportunity to understand how others cope with the pressure, the uncertainty and
the challenge of keeping your emotions in check! Maybe others will express the same concerns as
you? Could it in fact be the case that it has been easier for everyone else & that all of the problems
& challenges which you faced have been entirely your fault?..... seems unlikely!
‘IF YOU READ NOTHING ELSE, READ THIS’
Feedback from a dozen or so of our Clients has been to wonder why SSG does not produce a mini
round-up of ‘stuff’ which Budding Entrepreneurs running independent Recruitment Businesses
might need to know, want to know and want to share? Fair point I guess.
So, be careful what you wish for! From the March edition of TDS, Jane Fisher will produce just such
a piece. Please don’t be surprised if Jane calls you in the next few weeks to ask your permission
to share some of your good news, handy hints or warnings. It will be called ‘If You Read Nothing
Else, Read This’.
Jane will focus on a précis of important Industry News, provide a mini Economic, Legal and
Accounting Update, highlight specific SSG Client successes & wisdom and finally give a 10 line
update from SSG.
Please feel encouraged to share any great news you might have with Jane – as we say in this very
issue, any publicity is good publicity don’t forget!
HIRING AN APPRENTICE
Clare Armstrong gets serious for a change & has completed some detailed research regarding the
Government’s much lauded Apprenticeship scheme – you know the one, hire an Apprentice for virtually
nothing and ‘train’ them in some way.
A lot of rubbish has been written about how much it costs the employer, what obligations you might have
to the Apprentice and the apparently poor quality of the new employee.
Well, Clare has the detail for you – exactly what you need to do to benefit (including getting a £1,500
kick back from the Government) and the surprisingly high calibre of the 16-24 year old Apprentices
available as part of this programme. Many are motivated, intelligent and determined to provide their
worth.
If you need a Resourcer, Trainee Recruiter or committed Administrator, this Apprentice Scheme may
well be just the thing for you, but as with all such schemes, you need to know your way around the Red
Tape.
YOUR LEGAL DOCUMENTATION
You might be asking, ‘my what?’ at this point. Perhaps you didn’t know that you
had any legal documentation?!
As the Recruitment World becomes increasingly more litigious, full of loop holes
and cheats, we all need to be careful to ensure that not only do we have the core
legal documentation to hand but also know where & how to access help, jargon
busting advice and fresh documents, letters and updates.
We have investigated this tricky subject for you and surprisingly found few
surprises but we have found a lot of obligations a Budding Entrepreneur & what
to do about it.
27

28. One day, it might
be too late.....
Why not SYOB?
(Start Your Own Business)