Case Study – 3MD
Maximising Margin for 3MD
The Challenge
Stuart D launched 3MD in 2015, originally focusing on permanent placements. When the business secured its first contract for temporary workers, Stuart opted for a Limited Liability Partnership (LLP) model. While it seemed like the path of least resistance for a solo recruiter, the drawbacks soon became clear.
Under the LLP model, Stuart felt like an employee in his own business, billing for margin while a third party effectively employed his workers. The lack of control reached a breaking point when his provider missed a payroll run just before Christmas and became uncontactable. Stuart needed a partner that offered more than just a platform; he needed a reliable, human-centric funding model that gave him true ownership of his turnover and his candidate relationships.
The Solution
Stuart transitioned from the restrictive LLP structure to Workwell Outsourcing’s 100% funding model. This shift was designed to move the business away from a “managed service” feel toward a high-growth, independent recruitment model.
The transition provided:
- Strategic Funding: 100% funding for temporary workers, allowing Stuart to employ his own temps and own his turnover.
- Financial Optimisation: Moving away from the high costs of the LLP model to a more transparent structure that allowed the business to utilise tax efficiencies like the National Insurance allowance.
- Emergency Operational Support: Access to a responsive team capable of stepping in during technical difficulties (such as VPN issues abroad) to ensure payroll continuity.
- Scalable Ecosystem: Integration with wider group services, including umbrella solutions, to add value to Stuart’s end clients.
The Result
The move to 100% funding was a financial no-brainer. By claiming his National Insurance allowance, Stuart saved £3,000 annually overnight, meaning the transition effectively cost nothing in the first year. Beyond the savings, the reliability of the service has allowed 3MD to flourish for over three years. Stuart now enjoys total control over his business and a partnership based on mutual value rather than just a sales transaction.
Stuart D, Founder of 3MD, said:
“Moving to the 100% funded model was a no-brainer – it actually cost me nothing in the first year because of the savings I made. I knew that I wanted to employ my own temps and I wanted my turnover. Workwell absolutely value my business and they operate in a friendly, human way. They’ve sorted problems for me even though they didn’t have to.”