Still have questions about Mitie Entrepreneurs? Take a look at the answers to our frequently asked questions...
- Q. Does this apply to public and private sector management teams?
- Q. What sort of sectors are you going to start businesses in?
- These businesses could operate in many sectors providing a range of support services.
- Q. What kinds of businesses and management teams are we looking for?
- The fund will be open to dynamic management teams, provided the business idea fits with our strategy, does not conflict with any of our existing businesses and will produce an adequate return over the long run.
- Q. Will the management team retain control over strategic decisions?
- The management team will have day-to-day responsibility for each business. However, there are clearly defined authority levels as well as corporate policies that the management teams will have to follow. Mitie will provide significant support to develop and grow the businesses and will have detailed operational involvement.
- Q. How will the quality of services be protected?
- The management team will be responsible for running the business and delivering the world class services that Mitie prides itself on. Quality is maintained at a high level because of the personal commitment and motivation of the management teams.
- Q. What is the maximum investment?
- The maximum Mitie will invest is £10m.
- Q. What will I have to invest?
- Equity is usually contributed by a number of the staff involved in the business, which means that individual investments have historically ranged from £500 up to £100,000.
- Q. What will the ownership structure be?
- Mitie Group PLC will make a minimum investment of 51% in each business and the management team will contribute the balance of the equity.
- Q. What does Mitie get out of it?
- Mitie will make a return on investment that is proportionate to its shareholding as will the management team.
- Q. Can outsiders invest in the fund?
- No - only people working in the start-up company and its operations can invest in it.
- Q. Will Mitie increase the size of the fund in the future?
- A new fund will be launched once the initial £10m has been fully invested.
- Q. Can the new businesses make a profit and if so, where will it go?
- Yes, the businesses are established with the intention of making a profit, which may be reinvested in the business or distributed to shareholders.
- Q. Can the businesses borrow money?
- Yes, equivalent to the value of the initial equity invested in the business.
- Q. Where is the money coming from?
- Mitie will fund its share of the investment from business cash flows. The management team will need to find funds from their own sources.
- Q. Who decides which teams will get backing?
- The application will go through an approval process that will end up with a decision by the Executive Board of Mitie.
- Q. How long will the process take?
- The typical time period from initial contact to establishing a business is three to six months, however this can vary depending on individual circumstances.
- Q. How long is the fund open for?
- The fund is open from 17 January 2011 to 31 March 2013.
- Q. Can the management team have other business commitments?
- No, the management team in the start-up must be fully committed.
- Q. How big can the management team be?
- There must at least two people in the management team and less than 100.
- Q. Will I get paid a salary while I grow the business?
- Yes, you will receive an employment and benefits package in line with market conditions.
If you think you've got a brilliant idea, contact us and we'll get back to you if we'd like to take it forward.
Mitie Entrepreneurs documents