While recruitment businesses do require less upfront capital than other types of businesses, there are still costs associated with launching and building a brand. A website, CRM, job portals, office space, and employee salaries are just some of the initial costs that are required.
Recruitment Entrepreneur is one of the most successful private equity investors in recruitment start-ups. We typically invest $300k in a new portfolio partner; this investment enables the business to rapidly scale and build something of true value. Our investment also enables our founders to earn a competitive salary from day one, while simultaneously investing in their future by creating personal wealth through equity.
Our team invests alongside the founder, making each investment a true partnership.
The culture within Recruitment Entrepreneur is focused on both wealth creation and building a strong income stream. Most entrepreneurs never really get the opportunity to build real value in their businesses; our platform and philosophy are based on our personal experience and journey as an entrepreneur.
The ultimate objective of partnering with Recruitment Entrepreneur is to build a successful business and achieve a profitable exit.
Recruitment Entrepreneur invests alongside the founders in any business venture. Our model ensures all founding entrepreneurs have the opportunity to repay their investment before a realization event, in the most tax-efficient way. Investments are in the form of loans that are paid back when cash flow in the business allows, which is typically within year two of operation, and are fully repaid between years two and four.
Recruitment Entrepreneur enables all founding partners to maximize their incomes to create a good quality of life while building their businesses. As soon as the initial investment has been repaid and the company is profitable dividends start to be paid. Dividends are paid out of any free cash flow in the business that isn’t needed to fund future growth. Ongoing dividends are paid out in accordance with company performance and future profitability.
On average, our portfolio partners begin to receive dividend payments in year three, however, this is variable and dependent on a businesses’ individual performance.
"Since the investment, my company has grown from a two to a team of 18, spanning multiple sectors within the property sector."