Recruitment Entrepreneur's principle objective is to help entrepreneurs build and scale their recruitment business. Our model is based around enabling founders to achieve a business of between 25-35 consultants generating between £2.5-3m NFI.
It’s important to note that in the UK today 73% of all recruitment businesses have less than 10 people, which means that most recruitment business owners will not create any equity value; as boutique businesses, they are predominantly 100% owned by the founder and dependent on the founder, and therefore will have little or no value.
Recruitment Entrepreneur does not invest in lifestyle business as they don’t create any equity value. We recommend founders of boutique/lifestyle businesses should be independent, where they own 100% of the business and maximise on their income. For us, these businesses will not create any personal wealth or capital value in the long-term.
Many entrepreneurs have the opportunity of raising capital from family, friends, or professional connections which allow them to retain a higher percentage of equity. This sounds perfect, however, the investment fails to provide any infrastructure, expertise, development, resources, or a clear exit plan and strategy to create personal wealth.
In the UK, 80% of new recruitment businesses fail in their first two years due to a lack of experience in running a business, cash flow, or a range of other factors. This demonstrates that capital alone is not a guaranteed ingredient to success.
At Recruitment Entrepreneur we have an open and transparent environment where we share the equity equally and fairly with our founders; our model is based on having invested in 30+ entrepreneurs. We understand in detail the level of working capital needed to build and grow a recruitment business; based on this information we’ve concluded the investment required is £250k to grow to a scale of 25-35 people over a five year period.