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Look we get it, we really do, sometimes you need that little extra something.
Sometimes Isotope will meet a recruiter & through understanding more about what they are looking to do in their own business, we begin to see that they are going to value & appreciate some additional support, outside of the “traditional” Isotope model. While it might not be as simple as ordering an extra potion of chips or hitting that “next episode” tab on the remote – Isotope would be foolish not to try & accommodate.
That additional support might be in the form of a guaranteed salary for the opening few months of the business. Perhaps you need that guaranteed income from Day 1 to help support you through those tricky early months of cash flow ambiguity? Other times it might be an office from Day 1? Sometimes recruiters will come to Isotope with a few weird & wonderful tools that Isotope don’t traditionally look to at, that they feel are going to be important in the early successes of their business? It might even be that Isotope talk to a recruiter who has identified a need of an employee from Day 1 & perhaps they need some assistance funding that employee from the get-go?
Whatever the understandable requirements of these budding recruitment entrepreneurs, it is always coupled with an unwavering & unrelenting desire to grow a recruitment business. Great recruiters like this understand that an equity investment model, combined with traditional Isotope support platform, will help them achieve the business they want, the dynamic they’re hoping for & multi-million pound exit they are striving towards. These great recruiters also offer a great opportunity for Isotope. A chance to offer a slightly more expansive model – a model that encapsulates all the traditional elements that Isotope are known for combined with an understanding that, at times, Isotope need to brave, assured & flexible in working with recruiters that need that little something extra.
It was created to work alongside the traditional Isotope model & offer that added support, flexibility & (in some cases) “hard cash” to our ambitious recruiters.
Without getting too “hard-nosed investor” on you, Isotope would look to part with their hard-earned cash in exchange for a shareholding in your 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! Oh & we’ll also look at lowering the Isotope Success Charge, increasing our traditional offering & committing to be there to help you grow the business to the multi-million pound exit you might be striving towards.
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.
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.
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?
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.
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?
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!
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?
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