Monday, May 14, 2007

Executive Search Firm
  • Start-up cost: RM5,500-RM9,000
  • Potential earnings: From RM40,000 to as much as RM150,000 (gross)
  • Typical fees: Varies, but often equals 25 percent of first-year earnings of person placed with client
  • Advertising: Cold calls, attending trade shows, newsletter to potential clients, direct mail, ads in publications
  • Qualifications: Excellent people skills, patience, self-confidence, knowledge of specialized fields to be able to select
  • Equipment needed: Computer and office equipment, telephone, business cards, letterhead, brochures
  • Staff required: None
  • Handicapped opportunity: Yes
  • Hidden costs: Phone expenses and advertising costs could exceed budget early
  • Lowdown: Executive recruiters (also known as “headhunters”) are paid by companies to fill management, professional, and technical slots within their firms. Most of a recruiter’s work is done via phone and E-mail, so you can do this job anywhere, although networking face-to-face is also important. You will collect as many qualified applicants as you can (gleaned mostly from your vast resume collection and a few friends in high places). Many consultants choose niches in which to specialize; others serve all areas. A sales personality is helpful in this business, as is the ability to be self-motivated. Often, finding good people for the positions is easier than finding clients who will hire you to conduct the job search. You will need self-confidence, tenacity, and good networking skills to make it as a recruiter. This career choice gives you a great deal of flexibility and personal freedom, since you can work from any location that has a phone.
  • Start-Up: A computer and printer are essential, as is database, word processing, and communications software. These items will cost from RM3,000 to RM5,000. You will need a telephone, a headset, and fax, along with office furniture and business cards, letterhead, and brochures to promote your business. These pieces will cost RM1,500-RM4,500. You’ll earn an average 25 percent of the new hire’s salary—so it behooves you to search for the high-end, top-level managers.
  • Bottom-Line Advice: Competition for the best companies and top-notch candidates is stiff, and you get paid only when you successfully match a company with a candidate, but the financial rewards can be considerable, and the satisfaction of helping a good candidate to find a job and your client to fill a key position, make your efforts worthwhile.

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