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Incorporated Medical Recruitment
Business Angels help recruitment company get off the ground
Northwest Business Angels have helped a Manchester-based dental recruitment company to expand into new markets and achieve a six figure turnover in just two years.
Helen Franks, founder of Incorporated Medical Recruitment, has 30 years' experience in clinical dentistry, including teachinga dental nursing course. In 2007, she decided to use her experience to set up her own business recruiting staff within the dental sector.
Franks used her first year to prove her basic business model and establish operating procedures. The idea proved a success and she made 10 placements with a fee income of £20,000. Franks could see there was potential to generate a lot more business, especially if she began to recruit medical staff, as well as specialising in the dental sector. But she couldn't afford the advertising and set up costs needed for expansion.
Franks carefully researched all the options for raising finance, such as bank or business loans, then a friend pointed her in the direction of Business Angels. She was immediately attracted by the advice and support that was available from potential investors, as well as the financial investment itself.
The first step was to draw up a business plan for the investors. Next she had to make sure all her profit and loss accounts were up-to-date. A Business Angels advisor helped her condense her supporting information into a 10-minute presentation. After several meetings and a rehearsal, she was ready to present at the investors' monthly meeting.
Five of the investors who were present at the meeting showed an interest, as well as four more who had not attended but had received the information. After a few meetings, Franks decided which investor was right for her and within two weeks, she had her full investment of £30,000.
As the company's main marketing tool is its website, a large part of the money was used to update it to keep up with current online marketing technology and to invest in specialist recruitment software. This is essential in the recruitment business, as Franks explains, "the best candidates go very quickly and the best jobs go very quickly, too, so you can't hesitate. I've lost out in the past by hesitating for just half an hour."
Franks works from home and does not yet employ any staff, but plans to do so within the next four years. Although she only received her investment early in 2008, the company has already expanded and it is hoped that in the first three years it will achieve a minimum of 40 placements a year with a turnover of £124,000 and profit of £72,000.
Franks describes the investment as a huge advantage and would have no hesitation in recommending the Business Angels scheme. Alongside the finance, she is finding the support that comes with it invaluable. She says, "I'm from a clinical background where everything is very structured and this is a new area for me. In business things can be very uncertain, which is exciting and challenging, but it's great to have a 'business angel' at the end of the phone to give advice."
