Job Capital

Jo Burston

Jo Burston was lucky. Like many young people she dreamt of starting her own business. But she was 33, working for a large corporate and knew the start up would take hundreds of thousands of dollars - money she did not have.

But what she did have was an eye for opportunity. One day Burston was pitching to a potential client, successful entrepreneur Philip Weinman. She was so impressed with his business flair, she ended up pitching him her business idea.

Burston could see that that the growing skills shortage in 2006 was changing the work landscape. More companies were dividing work into projects and looking to bring consultants for short bursts to get their expertise and control their costs.

"At the same time the growing band of consultants were working in a global marketplace and needed their complex financial and taxation affairs managed for them."

"Most career and high net worth contractors were seeking impartial information about how best to manage their income and packages effectively without costing their clients," she says.

Meanwhile, most companies wanted to engage contractors without the risk and cost associated with managing trust structures, ABNs, and PAYG contractors that wanted complex payroll packaging.

She also had guts. The competitors in the space were very sophisticated corporates with many years of experience and networks. It would have been easy to conclude there was no room for a new, young player.

But Weinman loved the idea and backed her belief that customers will always turn towards a company that can offer better and more reliable and transparent service no matter how new, young and inexperienced.

He stumped up almost $200,000 and Burston spent the first year researching the market place and setting up operations. It was not until year three that Job Capital really took off with $4.74 million revenue in the 2008-09 year. "We are tracking for $8-10 million this year," she says.

Burston says that Weinman was a great support as well as an investor. The initial investment meant she could keep cashflow positive - although it was a struggle - and having a mentor at the start up phase ensured the learning curve has been short and sharp. "That meant I could make very fast, targeted decisions without wasting time. This has let the business have the agility to move quickly in a very competitive space," she says.

He also taught her to be a corporate thinker. "Philip would walk in and say: ‘Hi Jo, what are your sales, what are your debtors and show me your cashflow'. He was very direct which taught me a lot."

Better still, once Burston met certain benchmarks, Weinman let her buy his share of the company back. "That made sense for him too," she says. He has lots of other companies and it was not a core part of their portfolio."

Burston now owns 100% of the company. The majority of contracts are from the UK, Ireland and Europe and Job Capital is handling more high net worth contractors ($1,200 a day plus) in the banking and IT sectors. The IT sector has picked up because the projects put on hold through the GFC are now going ahead."

Burston also feels enormous personal satisfaction. "I wake up and think - this is mine. I love what I have with my team and they love what they do. And we have no doubt we will soon be a profitable middle sized company providing exceptional customer service."

WHAT IS YOUR BEST START UP TIP?
"A high growth start up needs a mentor to teach you how to focus on the business, strategy and finances, not just the day-to-day operations."