Start-Up Success For James Masini At Hippo Jobs

James Masini, 25 year-old founder and managing director of Hippo Jobs, an online recruitment company for Gen Y, shares the first 12 months of building a business.

“We’re only 12 months old but sometimes I feel I have been eating, sleeping and breathing nothing but Hippo for a decade,” says Masini. As Hippo celebrates its first anniversary as a fully-fledged business, he has felt the added pressure of changing the perception that he was just another lazy Gen-Y oaf looking for the
easy road to success and fortune.

While Hippo confronted some major challenges and setbacks in its first year, if it came down to it, Masini would do it all over again, “in a heartbeat”.
“Nothing worthwhile is easily overcome. Hippo has achieved amazing things in 12 months but really, we’re only just getting started.”

In the beginning: A great idea
Masini started working on the Hippo concept while studying business management and entrepreneurship at RMIT University. “The idea for Hippo came about from being at the pub with friends who couldn’t really afford to buy the next round of drinks because they weren’t working and basically were always broke. Not that they didn’t want to work, but rather it was difficult for people of my age to find an employer who would work with their timetable and be willing to give someone young and inexperienced a go,” he says.

Further research by James confirmed that he and his friends were not the only ones having problems finding work and that of the 2.8 million Australians aged between 15 and 24, about a million were unemployed or actively seeking employment. Masini immediately sensed an opportunity.

Phase 1: Raising capital
Looking to break down the barriers confronting the Gen Y workforce as well as combat general negative perceptions of the group’s supposedly suspect work ethic, Masini prepared a detailed business plan that went on to form the basis of an information memorandum, a document crucial to raising capital.

In June 2006, he took the Hippo show on the road; his goal was to present to potential investors with a view to raising about $3.2 million.

“My hopes were big at that stage. Within a couple of months I had presented my business concept to some 20 venture capitalists; I wore out plenty of shoe leather walking up and down Collins Street but unfortunately I didn’t get anywhere,” he says.

“I kept hearing the same things over and over: the market is too large, there are too many competitors, you are trying to raise too much money, you’re not raising enough money. But the one factor that stuck out most was my age and lack of experience.” (James was only 23 at the time).

Rather than deterring James, such comments only made him more determined to show that youthful energy, drive and determination could make the concept work.
By October, 2006, Masini had presented to almost 50 potential investors. Things were starting to gel and he had received offers from three potential investors. The three parties each offered different levels of finance in exchange for a percentage share of the business; interestingly, they each brought differing partnership ideas and styles to the table. Rather than shooting for the highest amount of cash on offer, Masini decided to go with the investors who proffered the least amount of cash, a group led by Jeff and Janine Allis, the founders of Boost Juice.

Masini says he believed this group truly understood his business idea and brand concept and, importantly, could provide the mentoring style of support he needed, especially being so young in Hippo’s initial stages.

Launch time: Hippo is born
With money in the bank and energy to burn, Hippo was away! On April 18, 2007, the Hippo jobs website officially launched with a national radio campaign, outdoor advertising plus a solid online marketing push. According to Masini, it was important to “get the brand out there” and let word-of-mouth take effect.

“It was an amazing time and so rewarding to watch the number of user registrations increasing on the site, literally on a day-by-day basis,” says James.
The launch sparked a period of amazing growth for Hippo. The company hired new staff and found larger office space to house the developing business. However, the possibility that the business might not pan out continued to play on Masini’s mind. He decided to play it safe, hiring temporary staff and securing office space with a flexible, short lease arrangement.