Executive Search Firm

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. 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 fi nding 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 ? exibility and personal freedom, since you can work from any location that has a phone.


A computer and printer are essential, as is database, word processing, and communications software and a professional-looking Web site that showcases some of your current job openings. These items will cost from $2,500 to $5,000. 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 $1,500 to $4,500. You’ll earn an average of 25 percent of the new hire’s salary, so it behooves you to search for the high-end, top-level managers.


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 fi nancial rewards can be considerable, and the satisfaction of helping a good candidate to find a job and your client to fill a key position, makes your eff orts worthwhile.


Approx. cost of start-up: $5,500 to $9,000


Approx. potential earnings: $40,000 to $150,000


Typical fees: Varies, but often equals 25 percent of first-year earnings of person placed with client


Where to promote: Cold calls, attending trade shows, newsletter to potential clients, direct mail, business and regional publications, Web site


Qualifications: Excellent people skills, patience, self-confidence, knowledge of specialized fields to be able to select appropriate candidates for jobs


Things needed: Cell phone, computer and office equipment, telephone, business cards, letterhead, brochures


Required staff: None


Hidden costs: Phone expenses and advertising costs could exceed budget early on