diversifying your business income
TRANSCRIPT
DIVERSIFYING YOUR BUSINESS INCOME BY: Jeremy Sisemore, ASAP Talent Services
INTRODUCTION
Ø Introduction
Ø Mission Statement Ø “To become the Top SAP-focused talent acquisition full-service firm servicing
North American Companies, as well as the #1 most thought of firm in the U.S. for SAP Professionals exploring their career options.”
Ø Basic methods to earn more: Ø Work Harder Ø Increase your Avg. Fee Ø Increase Staff Ø Work Smarter – Increase Efficiency Ø Maximize Your Selling Opportunities (“smarter”)
CONTINGENT RECRUITING
Ø Lowest level of commitment and partnership. Highly competitive and more likely to be vendor relationship. Get paid “if” they hire from you. Sometimes the relationship is driven by HR & they view you as “competition”.
History Lesson:
Ø This concept revolutionized our industry over 60 years ago and helped us transition from applicant paid fees to much higher corporate paid fees. Many people credit Alan Schoenberg, the founder of MRI with this industry-changer.
MORE COMMON REVENUE STREAMS…
Executive Retained / Engaged Search Higher form of partnership where a company will pay a portion of fee
(1/3 or less) to exclusively use only 1 firm to recruit & place a position. Often used in Dir. To C-Level search.
Leading Questions: Ø On a 1-10 scale, how critical is this search and how high-impact is the
position to the success of your organization/dept? Ø Would you be open to a more dedicated search effort & higher partnership? Ø Have you ever been dissatisfied with the results in your contingent
partners? Ø If I could show you a way to get better results and save money, would that
interest you?
CONTRACTING – STAFF AUGMENTATION
Company hires a contractor generally for short-term labor (under 12 mo.), but it could go longer. Firm pays contractor “pay rate” and determines “Bill Rate” to end-client by adding their "mark-up”.
Ø Insurance Requirements Ø 1099 vs W-2 employee vs Corp-to-Corp Ø 3rd party payroll vs Factoring Service vs Maintaining Your Own Payroll Ø Contracts in place; w/ Consultant and w/ End-Client Ø How to determine a bill-rate? Ø Contract-to-Hire Options and Conversion Fees, etc. Ø Value – Increase Level of Partnership w/ Clients Ø Value – Increase Consistency of Monthly Billing & Cash-Flow Projections Ø Using Contract as “Try Before You Buy” Scenario; overcoming objections Ø Using Contract – If company can NOT pay recruiting fees
M&A AND “TEAM MOVEMENT”
Ø Mergers & Acquisitions in the Recruiting World Ø Speaking with C-Level about brokering future acquisitions ; very nice fees! Ø Think about it. You know all the key players in “ABC” industry. Why not? Ø Longer & much more complicated sales cycle (6 mo – 1 yr.) Ø Fees can be in the $100k - $250k+ range Ø Very similar to recruiting process – approach target companies CEO/President
and inquire “…open to merger or acquisition if the scenario were right?”
Ø Team Movement Ø Differences in Team Movement and M&A Ø Pricing a Team Movement Project Ø Do’s & Don’ts to protect all parties involved. Ø Selling – “Would you be open to hiring an entire team that had a book of
business and was already running like a well oiled machine?”
HOW??? STRATEGY???
TALKING W/ CLIENT TARGETS “ALL THE INSIGHT NEEDED TO BE A “FINDER” ARE QUESTIONS WE SHOULD ALREADY BE ASKING”
Ø EVERY CALL YOU SHOULD ASK IF THEY ARE GROWING ORGANICALLY OR THROUGH ACQUISITION TARGETS
Ø ARE YOU A BUYER OR SELLER
Ø NO DIFFERENCE IN TAKING JOB ORDER/INTERVIEW Ø WHAT TYPE OF GROUP WOULD PIQUE INTEREST É EMPLOYEE SIZE
É REVENUES
É KEY DECISION MAKERS
É STRUCTUR OF BUY/SELL
É START TO FINISH DEADLINE
É DISCUSS FEE ARRANGEMENT
Ø Professional services within your niche § Example: Acct/Finance, Law, HR,
Banking, etc
Ø MOM & POP SHOPS § $1-$10M
Ø Companies with limited footprint
Ø Companies with limited service offerings Ø Companies with Seasoned Owners
FEE ARRANGEMENT (EXAMPLES) CAN BE CONTINGENT OR RETAINED
Ø CONTINGENT FEE Ø 5% OF 1ST MILLION
Ø 4% OF 2ND MILLION
Ø 3% OF 3RD MILLION
Ø 2% OF 4TH MILLION
Ø 1% OF EVERY MILLION THEREAFTER
Ø EX: $7M FIRM – FEE WOULD BE $170K FEE
Ø RETAINED FEE Ø $10,000 Monthly Payments for 6
months = $60,000.00 Ø DEDUCTED FROM TOTAL FEE
AFTER COMPLETION Ø 5% OF 1ST MILLION
Ø 4% OF 2ND MILLION
Ø 3% OF 3RD MILLION
Ø 2% OF 4TH MILLION
Ø 1% OF EVERY MILLION THEREAFTER
RESPONSIBILITIES/SUCCESSES Ø BROKER FOR BOTH PARTIES Ø DO NOT GIVE LAW ADVICE Ø MAKE SURE YOU RESEARCH ABOUT BUYOUT STRUCTURES Ø DEVELOP A NON-DISCLOSURE FORM, MOST PARTIES WILL NOT SPEAK TO
ONE ANOTHER UNTIL THAT HAS BEEN SIGNED Ø SAME APPLIES AS SEARCH 3-5 BUYERS/SELLERS
RECRUITER PROCESS OUTSOURCING (RPO)
“RPO – Many companies have been considering fully outsourcing their recruiting to a 3rd party.”
Ø The biggest distinction between RPO and other types of staffing is Process. In RPO, the service provider assumes ownership of the process, while in other types of staffing the service provider is part of a process controlled by the organization buying their services.
Ø Outsourcing in the late ‘80’s, ‘90’s and into the 2000’s. Ø Placing Contract Recruiters – worth considering. Benefits Ø RPO's promoters claim that the solution offers improvement in quality, cost, service and
speed. Ø The commercial relationship between an RPO provider and a client is likely to be based
on specific performance targets. With remuneration dependent on the attainment of such targets, an RPO provider will concentrate their resources in the most effective way.
OTHER GREAT MONEY MAKING IDEAS!
Ø Monthly Consulting Agreements Ø Speaking Engagements & Consulting Ø Channel Marketing Partnerships Ø Unbundled Services
1. Retention Services 2. Org. Chart Planning – Workforce Planning 3. Job Descriptions – Writing/Consulting 4. Resume Writing, etc.
CLOSING REMARKS & WRAP-UP
THANK YOU FOR YOUR TIME TODAY.
IF YOU HAVE ANY QUESTIONS YOU CAN REACH ME @ THE FOLLOWING
www.asaptalentservices.com