Startup How to Guides
How to Start an Outplacement Services Business
We've collected some good advice that is ideal for those who are thinking about starting an outplacement services business. Read this before you begin your venture.
Thinking about opening an outplacement services business? We tell you what you need to know to get started.
With the right business model in hand, a new outplacement service firm can find plenty of opportunities in the current marketplace.
The Outplacement Services Marketplace
Outplacement service providers haven't had any easy go of it during the economic downturn in the U.S. Unprecedented layoffs and downsizing has created high demand for outplacement services, so the problem hasn't been a matter of getting clients in the door as much as it has been dealing with scores of displaced workers in a depressed job market.
According to a recent WSJ article, the overwhelming supply of outsourced employees combined with the meagerness of available job opportunities has given employers and workers a jaded perspective about outplacement service firms - nearly 40% of displaced workers don't show up for outplacement services.
The right outplacement service firm startups can find ample opportunities in the marketplace, but to get them you'll need to be prepared to offer something more than a slate of vanilla outplacement services.
Differentiating Your Outplacement Services Startup
Differentiation has quickly become a key factor of success for outplacement services startups. From the outset, you'll need to be prepared to demonstrate how your outplacement services firm can succeed where countless other outplacement providers have failed.
- Industry Expertise. One of the ways to differentiate your startup from the rest of the marketplace is to specialize in outplacement services in a specific industry. Specialization accomplishes a couple of things. It gives you the ability to be more in touch with the needs of your clients. It also allows you to create a deeper list of contacts and resources.
- Innovation. Instead of doing the same thing everyone else is doing, why not be an innovator and design a completely different approach to outplacement services? It's worked for some outplacement services firms - the only catch is that your new approach will actually need to hold water and deliver real results for your clients.
- A "Less Is More" Approach. Right out of the gate, a lot of new outplacement service providers race to acquire as many clients as possible. That's a recipe for disaster in today's outplacement services industry because it prevents you from investing sufficient time for clients' individual needs. These days, a better approach is to provide higher quality service to fewer clients and leverage your "less is more" business strategy in your marketing and advertising campaigns.
Business Plan Mechanics for Outplacement Services Businesses
If you haven't written a business plan for your new outplacement services business, it's time to get started.
At Gaebler, we advise new business owners to keep your business plan simple. Ultimately, your business plan is intended to be a resource for you, the business owner.
If your time is limiting, outline the essentials of your outplacement services company's business plan now and make a commitment to come back to it later.
Take a Look at Competitors
Prior to opening an outplacement services business within your community, it's a smart move to find out how you will fit in the competitive landscape. Use the link below to generate a list of competitors nearby. Just enter your city, state and zip code to get a list of outplacement services businesses in your community.
How tough is the competition in the market you are considering? If the competition is too tough, you may need to think about starting the business in a different area or even start a completely different business instead.
Studying the Market
Once you've finished assessing the competion, the next step is to talk to somebody who is already in the business. If you think owners of nearby outplacement services businesses will give you advice, think again. It'd be crazy for them to teach you the business.
However, a fellow entrepreneur who has started an outplacement services business in a different city may be more than happy to give you a few tips, provided that you won't be directly competing with them. Indeed, many experienced entrepreneurs enjoy offering advice to startup entrepreneurs. It can take a while to find an entrepreneur who is willing to talk, but it's well worth the effort.
How does one quickly and easily locate an outplacement services business founder who is willing to talk to you but doesn't live nearby?
Here's how we would do it. Try the useful link below and key in a random city/state or zipcode.
Why You Should Buy (Instead of Start) an Outplacement Services Business
It's no secret that entrepreneurs have a strong impulse to build companies from the ground up.
Yet a healthier and safer strategy may be to purchase an existing outplacement services business.
Most notably, an outplacement services business includes more than just assets - a brand identity and customer base come with the keys to the front door. And that's not to mention the fact that a purchase let's you avoid the trial-and-error mistakes that are common in startups.
Consider Buying a Franchise
You should know that your odds of doing well in business are substantially improved if you buy a franchise in lieu of doing everything yourself.
If you planning on starting an outplacement services business, you ought to determine whether franchise opportunities in your space might increase your chances of success.
The link below gives you access to our franchise directory so you can see if there's a franchise opportunity for you. You might even find something that points you in a completely different direction.
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