Extra chips. 5 more minutes. One more episode. Diet starts tomorrow. One more game. One more rep. One more mile…

Okay…

& how do Isotope win?

Great question… The Isotope Equity Model was born out of a desire to ensure that we could support ambitious recruiters in their startup journeys. It was created to work alongside the traditional Isotope model & offer that additional support, flexibility & (in some cases) “hard cash” required to help our clients.

Without getting too “hard-nosed investor” about it all, Isotope add additional investment into a brand new recruitment business in the hope of yielding a return (yep – how very Dragons Den!). A return that, we hope, will manifest itself in the following ways:

• 

  One

  Isotope would hold a minority shareholding within that new recruitment business

  While each shareholding can vary, with so many variables to consider, it is the objective of Isotope to always remain the minority shareholder in these instances. Usually holding 20%, while you, the Majority Shareholder, would retain the remaining 80%. After all, we understand that one of the major attractions to starting your own business is the control & autonomy that you hope it’ll bring & therefore, in our eyes, it would go against the very philosophy of Isotope to demand a majority stake of your business.

  So, in exchange for a number of bells, whistles & bundles of hard cash, Isotope would ask for a minority equity position in your new business – usually 20%, which actually means that Isotope hold no legal power over your business. After all, we don’t want that & we would imagine you don’t either!

• 

  Two

  Isotope would look to earn a gentle dividend income by virtue of that shareholding position

  As a Minority Shareholder within the new recruitment agency, Isotope would hope to earn a small dividend stream based on the money drawn out of that agency by the Majority Shareholder. But remember, we do not have any legal say over your business & therefore we would never have any legal say over how much money is drawn, when it is drawn or if it is even drawn at all! You control the drawings within your business – never (ever) the other way round.

• 

  Three

  A potential equity buy-out?

  We know how important it is to our clients to own 100% of your recruitment agency. We therefore know that every ambitious recruiter we’re lucky enough to work with within our Equity Model will, at some stage or another, look to discuss purchasing the equity stake held by Isotope.

  The irony is we want this conversation to happen. We want our clients to be in a position to be able to buy the shares held by Isotope in their (very) profitable business – ironically this will always mean that the business is doing very well & ironically Isotope will be parting with shares that (deep down) we don’t really want to part with but we know & respect how important that total ownership is.

  & why would we ever stand in the way of that?

Let’s look at the fact

The Yin & the Yang

There are all sorts of arguments for & against the shared equity model. Whether you’re Isotope or whether you’re someone sitting at home reading this, there’s good & bad. Wrong & right. Ying & Yang – so let’s take a look at those right now.

• Yin
• Yang

• Cash Now

  The Yin

  The equity model offers the recruiter ‘hard cash’ in exchange for a minority equity position in the new recruitment venture. That ‘hard cash’ is usually in the form of a salary where Isotope would commit to ensuring the ability to take a consistent salary from the business for the opening few months. Usually between 3 – 9 months depending on the venture.

  Cash Now

  The Yang

  I know it, you know it, we all know it… you’ll be paying for this somewhere. We invest because we want to earn money, we want to see a return & we want our initial investment to grow. After all, nurturing is fantastic but there have to be numbers somewhere – don’t there?

• Yin
• Yang

• Success Charge LOWERED!

  The Yin

  Another way Isotope would earn their minority equity stake in the venture would be through lowering the “Success Charge”. So not only would Isotope look to guarantee a salary for the recruiter during the opening months, but Isotope would also lower (yes, lower!) the Success Charge to Isotope, as a way of further showcasing our investment & commitment in you, your idea & your business. To be clear, the real objective of Isotope (as a shareholder in your business) is to constantly display to you out worth as a minatory shareholder.

  Success Charge LOWERED!

  The Yang

  I know it, you know it, we all know it… you’ll be paying for this somewhere. We invest because we want to earn money, we want to see a return & we want our initial investment to grow. After all, nurturing is fantastic but there have to be numbers somewhere – don’t there?

• Yin
• Yang

• Helicopters AND Ferraris!

  The Yin

  While we are yet to work with a recruiter who makes a compelling argument for a Helicopter or Ferrari in their new recruitment venture – although we are open to arguments (!) – sometimes a fantastic Recruitment Consultants identify a few additional tools & extended support areas that Isotope don’t traditionally cover as part of our offering. That might be access to a few weird & wonderful job boards, a few insurances that require some initial investment or a down payment on a high-street office presence; whatever the required support, Isotope are here to help – unless it flies or comes with 720 horsepower!

  Helicopters AND Ferraris!

  The Yang

  I know it, you know it, we all know it… you’ll be paying for this somewhere. We invest because we want to earn money, we want to see a return & we want our initial investment to grow. After all, nurturing is fantastic but there have to be numbers somewhere – don’t there?

Learn more

Some valued Equity Partners…

Read Our Success Stories