Home Business: Starting a Placement Cell

A few weeks ago, one of my students seemed quite upset of the fact that his elder brother who was running the family, had been sacked and was now looking for a job. He was upset and needed help. he came to me with his problem and I asked him about the qualifications and experience of his brother and came to know that he was an accounting guy with about 7 years of experience. Having an experience in a related field is quite a plus point. I assured him that I will try helping him out and get him a job, may not be with the last salary that he was getting.

In a nutshell, here is how I was able to help him - Over the years, I have been in the industry, I have met people and maintained relations with them. So I am aware of what who is doing and I used this knowledge of mine to get a suitable job for my students' elder brother. Now he has joined the new firm from 1st Dec. 2009.

The point that I want to draw you attention to here, is that we all have contacts and our own social circle. We should be ready and open to helping out those who are in need and if that comes with some monetary benefits, why not avail them.

Over the period I have been thinking of using this knowledge to help out as many as I can. In today's Article, I will be telling you about a business plan that you can start with ZERO Investment and make money from it - all this from within the comforts of your home.

How Do I Start?

There are two different sets of people whom you have to trace out.

Set I - The first set is the set of people who are in need or looking for a job. These are the people who will actually benefit from your business.

Set II - The Second set is the set of people who is employed or working - In other organizations or have their own business. This set of people will help you in finding jobs for the first set of people.

How To Prepare The Set I

To start with, from the set of people you already know, you will need to identify your potential customers. Prepare a list of people under the following categories -
  • Students
  • Employed People
  • Unemployed People
  • Retired People
  • Kids
Now, try to sub-categorize these different categories as under - 
1. Students
    a. Who are nearing the completion of studies
    b. who will take some more years to complete the education
2. Employed People
    a. Find out people who are satisfied with their current job
    b. Find out people who are not satisfied with the current job
        i. Do they plan to switch jobs?
3. Unemployed People
    a. Looking for a Job
    b. Not Looking for a Job
4. Retired People
    a. Looking for a Job
    b. Not Looking for a Job
5. Kids
    No Subcategories here. Remember Child Labor is against Rules. So they are out of the scope.

Initially, just prepare a list from the people whom you know. Once you feel comfortable, you can use this set of categories to create a list of people in your locality.

Prepare the Second Set
Now that the list is prepared, you will need a second list of people. This second list of people will be primarily a list of Companies, Businesses and other Places where you can think to place the needy.

The Lists Are Prepared. What Next?

1. Once your lists are prepared, try contacting the second set of people first. The reason for this is that first you should be aware of the openings that are coming up or available so that you can fix up appointments for the needy. The primary goal of this information is to prepare your list of Clients who will be requiring the people.

2. Once you are done with this list, it is time to move to the next category (The one containing the details of people who are in need of Jobs). Contact them personally and ask them if they are interested and would like to take your help in finding a suitable job. Fix up their appointments with the first set and let them know. Wait for them to attend the interview and hopefully you will have a flourishing business soon.

The Steps and Process Seems Okay... How Do I Make Money Here?

That’s what is the next thing to be mentioned - How Do You benefit from all this. So here is how -

a. Charge the Candidates
If you want, you can charge on the services of placement that you are providing to those who are unemployed and looking for the job. These charges can include the following heads-

    i. A Registration Fee
     You can charge a registration fee from those who are looking for employment and keep this fee valid for about a year or so. This will help you in making an earning from day one. The negative side of this is that many people will not be interested as they are already jobless and making an investment is not always practical. I would recommend that initially, you do not put this condition. Do Not Charge the registration fee.

    ii. A fee after they  are placed
       Most of the Placement agencies these days charge about 50% of the first month's salary once the candidate is placed. So if you want, you can put this clause in the TOS between you and your candidate. Fix your own rates.

b. Charge the Organizations
A few of the companies take care of paying the Placement Organization. So if you come across a Business house that you can negotiate with, you can also try this out. Negotiate with them about the Payments that you can expect if you get them suitable candidates. Just keep this in mind and do not charge the candidates who get placed in such organizations as the organizations will pay you your fee.

What DO I Need To Start This Business?

Well, it depends on how big your approach is.

  1. To start with it, consult the rules and regulations prevalent at your locality. If needed, you will have to start with registration of the Business. Registration has its advantages as it brings credibility to your business. Candidates and Employers trust you more than they would have if you were not registered.
  2. Initially, you can start off from within your home. All you need is a room that you can use to setup your office - Where people can come and get information.
  3. If you are a computer savvy person, then you can put up a Computer at your office and maintain the lists in Spreadsheets, Documents
  4. A Printer - For issuing receipts and printed material (Like Forms, Letters)
  5. A Telephone Connection
  6. Business Cards
  7. A Set of Newspapers or anything that gives you information on the current job openings in your locality or town. This is an essential asset in your business. This will provide you with all the information that you can use to send candidates for attending interviews.
  8. I would also recommend you to take the help of a conultant - a Legal Advisor - who can frame out the TOS for your business.
How Much Money Can I Make From This?
To be honest, initially, the chances of getting higher profits are less. But if you are strong enough and willing to survive the low phase, then, over a period of about six months, your business should start growing. It depends on finding the right people at the right time at the right place. If these fall in correct places, you will be a success from day One.

You have to be patient in this and true to the people whom you are dealing with. This will help you in getting a Brand Name for your business.

Hope you found the article interesting and useful.

Awaiting your Feedback and comments.


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