Joint venture pioneer on a decision that could take you in an exciting new direction
Have you ever thought about running your own business?
Many of us have, but we are probably daunted by the financial hurdles, the risks, and uncertainty over the best way to go about it.
It’s often easier to put off the decision and stay with an employer, letting them take the risk. But of course they also take the rewards, often on the back of your hard work.
There is a third way – a joint venture. But my way is no ordinary way.
I was one of the first recruitment business owners to pioneer JVs. I have since created more than 50. Some people call me “Mr JV.”
When you work for someone else, the lack of control over your destiny can be frustrating.
I want to offer our JV partners an opportunity to run their own business – with help from a well-resourced and honest partner – and earn greater rewards.
I was determined to make the process fully transparent and the enterprise collaborative. Some JV models are neither.
Under our unique system, shareholders receive a salary, share in the profits and reap rewards for their hard work and enterprise.
With many recruitment companies folding, I believe this approach encourages entrepreneurial talent and goes further than others to generate successful results.
In a competitive industry, this is a great way to gain advantage.
The more successful our JV partners are, the more reward we all get.
Some partners have had a share of millions of pounds after the sale of a highly profitable JV.
Our model has proved so successful that, since my return from overseas, we are embarking on a new round of JV creation.
Not all JVs are sold. Several have been going a long time. RHL (Recruitment Holdings Limited) was founded as Refrigeration Recruitment in 1987. It built on my experience as a refrigeration and air conditioning engineer.
RHL now specialises in recruitment for a diverse range of industries, principally oil and gas, automotive, life sciences, consumer healthcare, design and engineering, pharmaceutical, manufacturing, renewables and the built environment. It recently opened an office in the high-growth Discovery Park in Sandwich, Kent.
Eclipse JV started as a recruitment business in 1996 and quickly moved into IT outsourcing services and Hybris omni-channel commerce to help clients better target and engage with customers.
I am continually looking for talented and ambitious people who can help me create great businesses like RHL and Eclipse.
How does the JV model work?
The first step in setting up a JV is deciding on a company name, agreeing a share allocation (the exact shareholding will vary by project) and a basis for dividend payments.
Most importantly, HR GO provides the new company with a finance facility. Interest is charged above bank rate to cover costs such as arrangement fees, account monitoring and administration charges. This entitles the directors to full support and back office services.
In the unlikely event of a loss, shareholders are responsible for a proportion of any losses relative to their shareholding.
That’s the official bit.
Could you run your own recruitment business?
The main message is that our JVs have been good for all of us. Are you, and maybe your colleagues, up for a new challenge?
Perhaps you are employees in a recruitment business? Or running your own enterprise and wondering how to take it to the next level?
If you believe it’s time to move in an exciting new direction, I would be pleased to talk to you about the opportunity in more detail.
“Seven Secrets of Running Your Own Recruitment Business”
Need more information before giving me a call? Check out my lively new guide: “Seven Secrets of Running Your Own Recruitment Business – everything you need to know to make your venture a success.”
You can download it from www.hrgoplc.co.uk/joint-ventures