Outplacement Services

The late ’90s through the early ’00s weren’t exactly kind to much of the workforce. Unfortunately layoffs still abound in certain industries. That is why you need to promote your services, which help displaced individuals find new work elsewhere. Read the business pages daily to keep tabs on local companies. Generally, whenever there’s a bad quarter, a layoff will follow. Your goal is to be the first (or the best) to approach these companies—at a time just before they actually need you. Your services can be in place before the downsizing is even announced to the employees, which is generally the way companies prefer to handle the layoffs. In this way, it will look like they already have a plan for those employees caught completely off guard.


Your start-up costs are likely to be quite high. You’ll need to have a computer system with high-speed Internet access for doing online job searches and similar research. Detailed corporate directories alone could run as high as $6,000 per set. A professional-looking Web site would also be a wise investment. Expect to spend between $15,000 to $30,000 getting started; expect to pull in between $75,000 to $150,000 per year once you’ve established a name for yourself. It’s a business that can be lucrative for those who have a good reputation. Word of mouth travels fast in industry these days (especially via e-mail).


The best thing you can do in this business is stay on top of things. Keep an ear to the ground, perhaps by networking closely with members of the Society for Human Resource Managers. And always get your promotional materials in front of the vice president of operations or other key decision-makers before your competitors do.

Approx. cost of start-up: $15,000 to $30,000


Approx. potential earnings: $75,000 to $150,000


Typical fees: Retainer fees of $1,000 to $3,000 per month


Where to promote: Yellow Pages, direct mail to human resource managers, trade shows, promotional items, networking, banner ads on human resource-related Web sites, your own Web site with client company testimonials and your unique selling proposition (i.e., what sets you apart from other outplacement firms?)


Qualifications: A background in human resources


Things needed: Computer with Internet access, fax, phone, letterhead, business cards, corporate directories, career counseling/ skills assessment materials, cell phone


Required staff:No


Hidden costs: Insurance, phone bills, and time spent with each client (they’ll want more of your time than is profitable for you)