Tips for Independent Recruiters – Setting Your 2013 Budget

As we approach the end of the year here at NPA, we are working on our 2013 budget. I imagine many independent recruiters are in this same position. A budget that is feasible and realistic is probably one of the most important assets that can keep your independent recruiting firm on its feet. In larger firms, there may be an accounting person handling your 2013 budget. But what if you don’t have an accounting person? What if you are the recruiter, accountant, customer service representative, etc? I’ve included a few tips below for independent recruiters who are or will be working on their 2013 budget.

1. Examine the past year – the first step to developing a budget is to look through the current year’s income and expenses. Deciding what line items are up or down for the year will provide insight and direction as to what may happen next year. Be sure to pay attention to global trends as well. These may be affecting your local workforce in the next year.
2. Be realistic – if your budget isn’t realistic it’s not going to be helpful to you and it’s definitely not going to be the guide it’s supposed to be for the next 12 months. Be honest about your expenses and income – $1000 here and there add up over time so don’t skip the small stuff.
3. Set goals – your firm’s goals for the year should really be your high level business plan. Your goals should be realistic because ultimately that will determine whether you meet or exceed your income and expense estimates. This should be something that you reference and check against often.
4. Track your income and expenses closely –like I said before, be sure to keep track of everything going out and coming in – no matter how small the amount. Look to cut costs where you can and remember to factor in some slack.
5. Shop around – evaluate your services and suppliers and find the ones that will give you the best deal. Odds are your internet provider is running some sort of ‘special’ that may save you a few hundred bucks throughout the year.

What steps do you take as an independent recruiter to set your annual budget?