Critical Mass' unique proposition to vendors is our approach to reducing the funding required during the initial phase of a start-up operation. 

Our business model is based on a shared risk/reward basis such that both Critical Mass and its client benefit from the business goals or revenue achieved through our joint activity.

Contracted Resource

Where direct costs are attributable such as for developing marketing materials, handling meetings and customer presentations then these are invoiced as a day rate with expenses charged at cost. Certain business goals may achieve a bonus payment as key milestones are reached. Sharing the risk of not achieving the projects defined goal.

Where sales pipelines are managed in a market or sector as an extension of our clients corporate entity this would be managed and built up over a contracted period of time. Critical Mass expects a revenue share on business transacted as a percentage of revenue.  This again promotes the shared risk/reward model such that daily costs are minimised until sales revenues are generated but rewards Critical Mass and its associates for their activity as revenues begin to flow.

Establish UK Entity

Critical Mass can also establish a UK entity on behalf of its client and take responsibility for the legal and financial aspects of its trading.  The sees Critical Mass brand this business using the vendors imagery and represents the vendors interests in the market.  This is completed under a contractual and exclusive basis for a period of time based on achieving set goals.

Critical Mass will utilise the market development budget set aside by the vendor to fund this entity.Our ability to hit the ground running to a defined and costed plan ensures no waste in this budget. Additional income derrived from a revenue share during the start-up phase of the business goes to support the ongoing activity.   This additional income will directly fund growth in personnel and resource available to the entity.  In this sense the business becomes a self-funding but does not retain any profit for paying Directors bonuses - this also minimises tax liabilities.

Where Critical Mass has established the UK entity then after a pre-determined period of contracted time (assuming targets have been achieved) then our client agrees to buy-back the business or a proportion of its share-capital for a multiplier of its value. This is the means for the staff and Directors to achieve income above and beyond a retainer payment and reward them for their efforts.  This back-ended proposition ensures that the risk is shared between Critical Mass and the client and that the client only needs to invest significant funds when the business has reached a steady state of trading and is achieving 'true' profit.

We would anticipate that the existing management team are then contracted to manage the business for a period of time prior to handover to new management. 

This model significantly reduces the clients upfront costs and risks, provides quick access to skilled resource with UK ICT market knowledge and contacts, minimises liabilities, achieves certain tax benefits and motivates UK based staff who have an assured exit and provides a true presence which will be recognised and provide reasurrance to potential end-user customers.