SmartCompany50 rank: 38
Revenue: $153.8 million
Growth: 35%
Founders: Matthew Franceschini, Pedro Fric, Jonathan Knowles
Based: Melbourne
Employees: 65
Industry: Property & business services
Website: www.entitysolutions.com.au
In the late 1990s, when subcontracting took off, many companies were not aware of their obligations when they engaged independent contractors on a fixed-term assignment or project.
So Entity Solutions was founded in 1999 to provide the corporate environment structure for this group of workers. When independent contactors enter into a relationship with Entity Solutions, they sign up for a PAYG relationship, which ensures that all of their structures are compliant under IR systems, workplace and contract law.
Entity Solutions assumes management of the relationship between the company and the independent contractors, including the right amount of insurance, management of payroll, invoicing, superannuation and any services.
In mid-2000, a competitor offered services including illegal tax breaks and Entity Solutions was asked to match them. “We declined and lost the clients and very nearly lost the business,” says Matthew Franceschini. “Every business should adapt, change and evolve very quickly, but the core values and essence of one’s business should be maintained.” Not only did the business survive but it is heading towards $160 million revenue.
In 2003 legislative changes to immigration laws changed the way companies employed overseas professionals, effectively ending the ability of organisations to use third-party contracts to facilitate overseas arrangements. About 20% of business disappeared overnight and Entity Solutions was forced to redefine its services to recapture its market.
The company now has offices in Melbourne, Sydney and Brisbane and represents more than 2000 independent contractors. Nearly all customers come from referrals.
