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Losing Job, what next? Start my own business?

By DAIUTO ·
I'm losing my job. I work for a large Credit Card bank and my site is closing down. I have about 22 weeks of severence pay based on my 10 years of "dedication". I'm also getting a retention bonus to hang on another month. I'll have time on my hands but I don't want to sit around like some of the losers that work here have suggested. I'm all about making money. Technology is what I like, but my personality needs to work with people or clients.
I'm thinking of starting a recruiting company. Job placement for Techs like the ones on this site and the 10 million other out there that jumped on the $$ band wagon. I could start now and have it running by the time my Oct 1 deadline hits. Don't forget, I'll still be getting paid until early Spring from this company. How hard is it to open the recruiting company? Does anyone know what my dangers are or what potential lies ahead? Don't get me wrong, I've done my research, but I'm looking for another opinion other then those who are trying to sell their books.

Thanks,

Ron

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Go for it!!

by mjd420nova In reply to Losing Job, what next? St ...

I was in a similar position and only got 8 weeks
severence, but it was enough time to put a
consulting business together. The severence pay
was what really made it possible, an unhurried
approach made for complete assesment and preparation...Try not to get in a rush to get money coming in again, sometimes you skip over what may seem small concerns that can haunt you later.

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I appreciate the boost any other Advise....?

by DAIUTO In reply to Go for it!!

I'm not worried about the initial income, I just don't know the steps it takes to get things started. I'm sure I can get a business name and get an accountant for the first year, but how did you find companies? Just looked them up and cold called them? How do you know what paperwork has to be completed? Do you do most of your hunting online?

Any books you could recommend?
Thanks

Ron

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Depends on regulations

by JamesRL In reply to Losing Job, what next? St ...

In Ontario, recruiters have to be licensed. You might find it easier to work for another recruiter for a while to see if you like it and learn the ropes.

I looked at the business in the 80s. Its pretty cut throat, and it depends on how good your networking skills are. You have to develop a stable of good contacts in HR at a number of companies, and constantly probe them for new information, without offending them.

And your earning potential will be limited by how well the market is doing. In good times, you will get about 10% of the employees first year salary (more for scare skills), in a bad market it can go down to 5%, and there will be fewer jobs to place.

I have worked with one man operations who frankly have done a better job than the big faceless recruitment firms. They are successful when they really form a partnership with their clients.

James

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A glutted market?

by DC Guy In reply to Losing Job, what next? St ...

I don't know, Ron. It seems to me that you're choosing a market that's already bloated. Every downsized employee from the HR department of their firm is trying to do the same thing. And you're all competing with the people who are already trying it because what happened to you already happened to them earlier.

As a job seeker I've had five different recruiters talk the same job to me. As a manager I've had five different recruiters offer me the same applicant.

Not to mention, the whole recruiting profession has gotten a black eye from the army of doofuses who think anybody can do it.

And then there's the problem in your chosen sector: IT. As jobs get downsized and/or offshore-outsourced, the natural consequence is more applicants for fewer postions.

You have to recruit in a field you know; the idiots who try to branch out into unfamiliar territory are easy to spot and make laughingstocks of themselves. If your field is IT, you're chasing a shrinking market. America is destined to lose the IT industry in the long run, despite pockets of prosperity in the short run. What IT needs right now is not innovation but QA and incremental improvement and we absolutely suck at those things.

Still, millions of people get hired every year. Maybe you're the whiz kid who will make it in this field, especially if you've got the people skills that most IT people lack.

Everyone else here has encouraging words, I thought it wouldn't be too rude to offer a different opinion for balance.

Good luck!

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Why not start a business in what you know best?

by masinick In reply to Losing Job, what next? St ...

You seem to know the financial market well. Why not start a small LLC consulting company and establish a clientele. At first, you might offer to provide analysis, consulting, and programming services for some project with a large firm. If the work is of sufficient size, you can grow your LLC and hire a few people who have solid skills and similar interests. You could start each one as a consultant, and based on their success and yours, you could grow or contract the size of your team according to the work that needs to be done.

I'd start by getting some good contacts out there with companies that need the kind of stuff that you can provide.

Ultimately you can end up managing the process and the networking with companies, and hire good people to go into the various clients and actually do the development work.

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I tried it..hope your money holds out

by neillix In reply to Losing Job, what next? St ...

I went into independent consulting for the past 5 years. Yes, there was money to be made as a self employed person. BUT the overhead cost took about 50% of my revenues. On top of that the competition for contracts were fierce and as a smaller consulting company, we weren't able to compete. There are other businesses without these contraints, so if you really want you own business make sure the dollars you have in hand will sustain youwhile you get your biz to a stable level(at least 3 years, and more than 5).
RM
http://www.unitoday.com/hfpres/index.cfm?distid=2576237

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What do you know best?

by alcoutu In reply to Losing Job, what next? St ...

As suggested above, you should pursue a business in what you know best. Do you have a strong background in recruiting? Would your other skills fit with recruiting if you partnered with someone else? Try taking an inventory of your special skills. If a theme emerges -- like job placement -- see if it would make sense to partner with an existing company. There, you can learn about the field, gain more experience, tap into a mentor and contribute at the same time.

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