Here's what you should consider

Below is a checklist of things to consider as you embark on this exciting adventure, whether it's a long-term business commitment or a temporary business to support you during a transition:

Financial Structure
Setting up your business entity is important, but simple and secure. Depending on your ownership structure a lawyer may be needed. For sole proprietorships and small businesses we recommend an LLC over an S-Corporation, but be comfortable knowing that converting an entity later is not expensive or time-consuming. We suggest starting with an LLC, which protects personal assets while allowing for simple tax reporting. As the business grows and adds revenue you may consider the services of legal counsel for complex operating agreements if multiple owners are involved. Prospect City can set up your business entity within 48 hours. Email us.

Generate New Business First
The best advice we can give is to focus on generating new business as soon as possible to minimize the personal liability associated with funding your business. After you've thought of a business name, start with these basic tools:

Get a Phone
We recommend you initially use your mobile phone to make and receive business calls. When it's time to incorporate a professional telephone experience for your clients and candidates, consider a PBX-style VoIP telephone system hosted by Prospect City.

Get a Web Domain and Email
We recommend securing a web domain to house a website, but most importantly to allow for professional email messaging. Having an AOL, gmail or other email domain does not effectively promote your senior level executive search business. Prospect City can secure your proprietary domain and have email set up within 60 minutes. Contact us.

Create a Temporary Website
To avoid the high cost associated with complex website, we can create a basic yet professional website for your business. At this point, your website is typically not a revenue generator but instead serves to validate you and your business in the eyes of clients and candidates. Later you can invest more in your website as finances become available. Contact us.

I'm up and running and have been awarded new business. What now?
Now it's important to start considering the tools and resources you'll need to operate your business and execute search. To implement and manage these services effectively and inexpensively, we recommend:

Bank Account
When your business is registered you will receive a Federal Tax ID, which should be used to open a business bank account. The is the first step in building a critical asset of your business - a credit record. From here you can apply for corporate credit cards too.

Accounting System
You'll need a place to track business expenses, invoice clients and manage your checking account. While desktop programs are an option, we highly recommend Corduroy, an online system that is secure, disaster-proof, and an inexpensive option to minimize operating costs. Prices start at just $15/mo.

Database and Document Storage Solution
You'll need a place to store contacts and documents for your business. Prospect City offers the fully hosted Velvet Search Management System designed exclusively for senior level recruiters. It's priced for entrepreneurs, exchanging higher up-front costs for ongoing subscription-based fees so the cost stays in line wtih your success. We can promise you it will be the only database you'll ever need, because it's scalable and completely customizable.

What about business operations and search execution support?
Prospect City offers a range of services to support your business in the most efficient and cost-effective way. No contracts are required so you can scale up, down or off at any time in the event you decide to hire employees.

Research Leverage
As a senior level executive recruiter your need for research support is critical, but can be costly to maintain if revenue isn't consistent. Prospect City offers variable research support with our own researchers experienced in senior level search and a 1,000-member network of independent research professionals covering every function, industry and geography. Fees structures include hourly, retainer-based or project-based. This sub-contracting solution aligns your cost with revenue and eliminates the complex and expensive employee option.

Research Tools
Our team already has access to expensive online tools needed to perform so you don't have to invest in them. When you invest in our team, the best tools are included.

Administrative Support
Prospect City has an internal team of administrative support professionals with extensive experience gained from large search firms. In addition to correspondence, travel arrangements and proposals, the team can design all of your materials to ensure a professional, consistent appearance. Rates include both hourly and retainer.

Financial/Bookkeeping Support
Our internal bookkeepers can set up your accounting system and manage it for you - without requiring access to your bank or your checkbook. Using our online system, our team can manage all of your payables, receivables, billing/collection and even payroll.

Let's Review
You've now built your business platform using Prospect City, and the model minimized your financial risk by trading high front-end costs for smaller ongoing fees that align with your revenue. You use subcontracted support in key areas until your business is capable of sustaining itself. You have phones, email and a website that promotes a high-integrity, professional business. You have a reliable, secure and disaster-proof database to organize your contacts, searches and documentation. With all of your technology hosted offsite, you have no need for expensive internal technical support, and you have a completely portable business.

At this point you've invested a minimum amount of financial capital (risk) into the business without diminishing your abilities. With the solid infrastructure in place and a net profit surpassing 75%, you'll attract new partners to your firm. In the event your business is temporary and you decide to join another firm, the business can be suspended or shut down in days with no financial risk.

Email or call us for more information.

 

 

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