Business financial model file
Recruitment Agency Financial Model
Separate recruitment setup and sourcing runway from the fee and delivery work of a completed, collected permanent placement.
Opening investment and working cash
The original case is permanent placement, not temporary staffing that funds workers' wages. Workstations are investment, initial sourcing is pre-opening expense and a cash buffer covers the collection gap. Candidate records and signed vacancy briefs are operating evidence, not cash sales.
| Cash use | $ |
|---|---|
| CAPEX: Workstations and communications equipment | 8,000 |
| CAPEX: Workspace fit-out | 4,000 |
| Pre-opening: Contracts/privacy/professional setup | 5,000 |
| Pre-opening: Initial sourcing and launch campaigns | 5,000 |
| Refundable deposit / tied-up cash | 2,400 |
| Opening stock / initial working inputs | 2,000 |
| Reserve: 3 selected fixed-cost months | 58,350 |
| Selected opening cash total | 84,750 |
CAPEX totals $12,000, pre-opening expense $10,000 and working cash $62,750. The deposit and opening stock tie up cash; they are not added again as monthly rent or consumed inputs. The reserve is a chosen fixed-cost buffer, not proof of full funding. Obtain actual installed/tax-inclusive quotes and dated opening payments.
Monthly fixed and variable OPEX
Recruiters and coordination carry$16,000 loaded/month. The external sourcing commission is success-based and distinct from salaried recruiters. The$400 replacement-service allowance is an original planning cost, not evidence that every guarantee or refund exposure is funded.
| Commitment | $ per month |
|---|---|
| Two recruiters: loaded budget | 12,000 |
| Coordinator: loaded budget | 4,000 |
| Workspace | 1,200 |
| Search/licence subscriptions | 900 |
| Insurance | 400 |
| Marketing | 600 |
| Admin | 350 |
| Total selected fixed cash | 19,450 |
| Item | $ per unit |
|---|---|
| Net collected selling value | 6,000 |
| Selected candidate checks per paid placement | 300 |
| Success-based external sourcing commission | 900 |
| Incremental interview/travel costs | 200 |
| Selected replacement-service allowance | 400 |
| Percentage-only fee allocation (1%) | 60 |
| Contribution before scheduled payroll/fixed OPEX | 4,140 |
The percentage fee is an aggregate allocation, with no fixed per-payment charge assumed. Unit contribution is not owner income: the full listed monthly roster and overhead still need coverage.
Capacity, break-even and a lower-sales case
Two recruiters have 320 combined paid hours, with 75% allocated to delivery, or 240 delivery hours. At 40 hours per completed placement, six placements fit; the candidate/client process also permits six in the assumed month. Plan five paid completions, not five CV submissions or accepted interview invitations.
For this fixed mix and commitment, whole-unit cash break-even is 5 paid completed permanent placements per month: ($19,450) ÷ $4,140, rounded up. The aggregate capacity is 6 units; it does not establish customer demand or a workable daily sequence.
| Paid units | Net sales $ | Selected result $ |
|---|---|---|
| 3 | 18,000 | -7,030 |
| 5 (planned) | 30,000 | 1,250 |
| 6 | 36,000 | 5,390 |
Three collected placements keep the salaried team and search subscriptions. Customer payment triggers and guarantee terms can change cash long after an offer; the retained guide's search-capacity case has separate economics.
Practical KPI definitions
Measure fee earned and collected per completed placement, time-to-fill for the same vacancy cohort and guarantee-period replacements/original placements. Separate submitted candidates, offers accepted, starts and invoices collected before calling pipeline conversion revenue.
Collections and variable payments are aligned in this month only. Actual start-date triggers, refunds, receivables, tax and finance need a contract-level cash calendar.
Method context: SBA business planning. All case prices, wages, cost ratios, reserve and capacity inputs above are original planning assumptions.
What the selected model covers
The official Recruiting Agency Financial Model listing describes acquisition spend and cost, service allocations, customer lifetimes, monthly billable hours and hourly prices. Salary/staffing and dated expense/investment inputs support profit and loss, monthly and annual cash projections, break-even analysis and dashboard charts.
Match the revenue basis to the actual agreement
The seller describes a customer-times-hours-times-price forecast. A contingent placement business also needs fee triggers, unsuccessful search effort and replacement terms. In our original three-assignment example, one $10,000 fee leaves only $500 before a $1,000 replacement cost.
Compare the listed service-hour forecast with actual client fee triggers and recruiter effort. Keep replacement obligations and temporary-staff payroll separate from permanent-placement search. The Recruitment Agency planning guide develops the original worked case.
Planning guide