There is a right way and a wrong way to start a headhunter business. There are many businesses claiming to be headhunters, but they are really more like technology companies that use software to match resumes and companies. The business owners do not build business networks to consistently find qualified people. They simply do some online marketing and offer cut-rate deals. The headhunter business plan should demonstrate that this is a serious enterprise that helps companies find the right people with the right skills, competencies, and experience that can meet business client needs. People may be able to post resumes, but the professional headhunter is normally not just a service point where resumes are posted online and businesses are charged for access to the resumes. This is not a formula for long-term growth and attracting funding will be difficult.
Key points covered in Headhunter Business Plan
The business plan needs to make it clear how the headhunter will build a growing business by providing quality services and developing a sustainable revenue growth model. The typical points to cover include:
• How will the service build a database of quality resumes and continually add new resumes specifically appealing to business clients?
• What filtering system will be used to ensure the database contains job candidates with marketable qualifications?
• What commission or fee schedule will be used when business clients hire a person in the database?
• What networks has the business owner already developed to ensure a regular flow of resumes and business clients? They may include professional associations, social media, attending trade and job fairs, etc.
• Will the headhunting business specialize by working in a particular industry or recruiting special skills or experience, like engineering, technology, managerial or executive level positions?
• What marketing strategies were developed to promote the business?
• Will the business be home-based or located in an office building?
• What criteria will be used to match the best candidates to recruiting requests? Will software be used for extracting eligible candidates from the database? If so, which software packages were reviewed and why was one selected over others?
• Does the headhunter have past experience in Human Resources management or once work for a headhunting business?
Headhunters are said to be in the business of finding people employment, but that is only half the story. They are playing a more important role in the labor market as companies turn to technology and a global job market to find the ideal candidates. Though an old industry, it is now a transitioning one in the Information Age. The headhunter business plan that clearly identifies a market niche and how technology will be used to streamline the matching process is more likely to be funded than one that relies on the old business model.
Entrepreneurs ready to create a headhunter business plan should complete the OGS Capital (https://www.ogscapital.com/) contact form first. That will start the process of matching experienced business plan consultants with entrepreneurs interested in developing a business plan that can be used as a roadmap and a tool for recruiting investors.
Illustrative business plan samples
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