Like most business owners, recruiters are finding themselves long on expenses and short on cash.  It's always critical for any recruiter to make the right decisions about spending; but during an economic downturn it can mean the difference between thriving financially or struggling just to survive. Here are a few questions you can ask yourself when trying to determine how to use limited cash in your business.

1.    Will the purchase make me money?  Before you spend cash on a new device, service or vendor, ask yourself, will the investment bring more money to your company?  If the answer is yes, then this is where you should spend your cash first.  

2.    Will this purchase help increase my credibility with clients?  Maybe you want to invest in a professional website, business cards or membership in an organization your clients hold in high prestige. Increasing your credibility with your clients increases the likelihood that they will continue to do business with your and refer you new clients.

3.    Will this purchase increase my access to top-quality talent?  For recruiters, access to the best talent is a key ingredient to attracting and keeping clients.  Use available cash to attract and find the best talent that you can get access to.  Sending quality talent to employers will keep them doing business with you and the best talent is your biggest competitive edge.


The most important thing to consider when spending during a recession is whether your purchases with help your business or are simply nice perks.  These three questions will help you make that distinction.