The top-down approach requires the recruitment of 12 Regional Directors who will simultaneously recruit the lower levels of the structure in a cascade fashion. Although this is relatively simple, the lack of knowledge, experience and expertise meant it was difficult for the CEO to get finance and get people interested in the project.
In order to gain that knowledge, experience and expertise the CEO decided to "start small" i.e. with his home town of Birmingham. Even that proved a huge task as Birmingham has 40 wards. So, the CEO decided to start with one ward - the ward he lives in i.e. Bartley Green
When the CEO was thinking of retiring from his full-time job, he was thinking of Internet Marketing to supplement his pension despite he had 6 properties whose cashflow provided that. In any case, he found that he wasn't good at article writing especially copywriting, he decided to enrol on a journalism course as he felt that Journalism was a respected profession, despite the recent shenanigans. In the meantime, he sought an alternative - the Unemployment Reduction Agency. He waited until December to enrol on the Journalism course when he received his redundancy money. In the meantime, he had 7 months to prepare for the inevitable.
Although he had changed his mind about Internet Marketing, he still needs the Internet to recruit potential employees and disseminate information. He took a business course with the PRIME organisation but the examiner poo-poo'd the idea and other members couldn't see where nor how money could be made. The examiner exclaimed that what the CEO wanted to do was what a Government Department would do and advised that he should start small - the usual advice.
Three months of research later the CEO concluded that Lenders and Business Angels/Venture Capitalists wouldn't even look at it. So he considered giving potential employees shares in the company in lieu of salary. There are legal complications but they would cross that bridge when they come to it - this shouldn't stop the creation of the company and the collection of the data. Besides, there's a precedent for this in the form of worker cooperatives which have existed for 100s of years.
In order to convince prospective employees to join the company, the CEO decided to do the work for the West Midlands Region down to the wards in each Local Authority. The West Midlands Region would be used as an example for the other 11 regions in the country. For this purpose, the CEO registered FullEmploy Ltd at Companies House as a dormant company for the time being.
When it came to actually recruiting people, the CEO was at a loss on how to go on about it. However, if he were to interview the general public on unemployment as a journalist, he may come across unemployed people and explain to them about the company. As a trainee journalist, it would be next to impossible to get an Editor of a newspaper or magazine, to commission him to write a series of articles on unemployment. So the CEO created another company - Media Publications Company (UK) or MPC. He then created this website - MPC News - to publish the results of interviews with the general public. An attempt will be made to sell these to mainstream media including Radio and TV.
When the website becomes popular with the public in terms of number of visitors per month, MPC News will sell advertising space. In terms of structure, MPC will mirror FullEmploy. That would be overkill but initially, FullEmploy needs information at ward level. At some stage, demarcation lines will be drawn so that MPC News can operate as a standalone and independent company.
The CEO estimates that it would take at most 2 months to recruit the 12 Regional Directors. It will take the Regional Directors the same time to recruit the County Managers and so on i.e. 2 months per level. The levels are:
This would take 12 months but level 6 would see the company collecting data thus they would be deemed to be trading. Technically, they are deemed to be trading as soon as they start recruiting as these activities will incur expenses. When MPC News starts selling articles and/or advertising, they will be deemed to be trading as there would be a revenue stream.
Once the structure of MPC News and FullEmploy have been established, they would be allowed to trade for a full 12 months and then floated on the stock exchange so that the employees can realise the value of their shares.
Perhaps long before then the companies would be seen as attractive propositions and would qualify for business loans. The CEO would put together his findings so far, into a business plan and attempt to get the funding. This won't happen because of the extremely large size of the project and the CEO's virtually non-existent experience in this sort of work. This means that if the banks won't lend the money now, the companies don't want their money later on. They'll have to buy the shares on the Stock Market like everyone else.
If we don't get business loans, it means that the shareholders will have to pay their own expenses such as their own PCs/laptops, mobiles, transport, accomodation, etc. These can be set off against profits but the company would have to be trading and has to provide audited accounts. This has to be the way forward as it will give the management experience of running a company.
According to a recent survey (March 2013), the majority of businesses are small and operate from home. However, the companies are to be setup as worker cooperatives with the Limited company structure as the legal structure. The companies will be guaranteed by shares that the workers will eventually own.