Small Business InterviewBy, Alyssa BufisNichols CollegeMGMT-100 02Professor Fleury-Lawson

Introduction

•Interviewee: Richard Wnek

•Executive Recruiting Company▫Home run business out of Morristown, New

Jersey

•Best friend’s father

Executive Recruiting Company• is a recruiting company that provides prescreened and

qualified candidates for open positions for a variety of clients in the insurance industry.

• Limited Liability Company: the responsibility of a business’s owners for losses only up to the amount they invest

• Why this structure?▫ Easy to set up▫ Easy to register in New Jersey▫ Tax returns are not complex

Executive Recruiting Company

•Services: Provides qualified and prescreened candidates to company’s with open positions

•Been in business since 2004▫Worked in the insurance industry for 20

years▫Prior, partner in another ERS company

until it when out of business

Background of ERS Company

•Getting started: ▫Had a consulting business and an

insurance recruiter in New Jersey help him get his start

▫Began the company without any loans because an office was already set up from the existing company

Background of ERS

•Why start?▫Three main reasons

1) Saw the need for recruiters in the industry

2) Saw a need in the insurance recruiting industry for an experienced insurance professional who truly valued relationships

3) Was able to leverage the prior developed relationships from past 20 years to the new company

Background of ERS

•Owner’s training:▫ Learned recruiting while working on the consulting

project for an insurance recruiter ▫ Attended National Insurance Recruiters Association in

2006▫ Attended online global training programs for recruiting

firm owners

•Background in business:▫ Master’s degree in management ▫ Active member in about 10 professional organizations

Background of ERSBeginning of Company Company Today

Sole practitioner with one client

Only able to work on a few open positions

▫ Support from NIRA▫ Contracted with

several experienced recruiters

▫ Clientele has grown

Successes and Challenges

•Successes▫Relationships with clients▫Ability to make candidates happier in their

field

•Challenges▫Running a small business with the

economic downturn Impacted the insurance industry and clients

ability to hire staff

Most Challenging Aspect• Ability to compete against larger companies with

larger staffsWhy?

Because some clients feel that larger companies are due to a larger fee for a placement service, or they feel that a smaller firm cannot fill their position

• Overcoming this challenge▫ Having relationships with a variety of managers▫ Ability to express knowledge about positions

Critical Success and Fatal FlawsCritical Success Factors Fatal Flaws

• Constantly produce quality candidates for their positions

• Able to identify and submit qualified candidates before another recruiter if you’re the first recruiter

• Need to develop a professional relationship with clients

• Inability to differentiate their services from others

• Cannot handle economic downturns

• Small network of clients

• Non professional manner

• Not being able to leverage social media to enhance and increase the business

Future Plans

•The company with continue to grow and add more staff and clients

ERS has been able to develop new clients when a senior manager leaves one company and joins another

•Planning on expanding the use of social media in attracting both clients and candidates in ERS

Other Questions• After you retire, who will own your company?

▫A family member might take over, the company might be sold or merged with another

• Why did you pick this certain area of business?▫Because there was a need in the insurance

recruiting marketplace

• If you had the chance to open another company would you?▫ Considering opening a professional writing résumé

service

Advice for Future Entrepreneurs Advice What did I learn?

• Learn all that you can• Develop as many

relationships as possible• Develop lasting

relationships• Leverage your

relationships to both your advantage and your clients

• Ask questions• Be confident in your ideas• Take risks

• I learned that having a successful business doesn’t only mean have a good idea but developing relationships with other companies in order to help your own

• I also learned that in order to have a successful business you have to make sure there is a need for your service