Sunday, April 21, 2013

Entrepreneurship Class Project

This is it the last paper for my last class in my Business Management Minor. It was a great class to end with to. Relevant and up to date with a great professor who had experience with Entrepreneurship and knew his stuff.

So, we had to use a discovery canvas which I left attached at the end of my paper and then expand on that for the paper to become 5 pages.

Please let me know what you think, you never know... I just might do it!



Howe Recruiting Service

The Pitch

Howe  Recruiting Service will provide the recruiting professionals that transportation firms need.  We work hand in hand with your company, dispatchers, safety department, and insurance company to insure your recruitment needs are met. Then we go beyond any other recruiting or placement service in the market today by providing after-hire services that allow your safety department to concentrate on more important things, like fleet safety, and allow you to rest easy knowing that professionals are making sure your company grows.
We will create a job description, seek out the best candidate to fill the position and interview them for your company . Then we will assist you in putting together an application that meets the Department of Transportation (DoT) and company standards. Our service includes running the standard background checks by pulling MVR, DAC, and PSP reports and tallying up any tickets or infractions to verify applicants’ PSP scores are acceptable per your company's insurance standards.
Howe Recruiting Service will continue to go beyond just connecting your business with an applicant. We will continue to serve you by collecting all the signed documents and after-hire documents that the DoT and your company or insurance company require.
Proving to be the best service means delivering the best recruits. We want to insure that our recruits and our clients build a long -lasting relationship by offering an optional liaison service between the company and driver for up to a year to assure retention. Assuring retention can save companies time and money. Retention of drivers means that new recruits will be added to fill new positions produce new profits for your company.
As  your company continues to grow we realize that more trucks mean eventually you will need more dispatchers to manage your new drivers. We are able to help find your company experienced dispatchers, or if you would like new fresh recruits that are smart and reliable to train, we can find them for you, too. We have established relationships with many dispatchers and can draw from a pool of qualified, experienced candidates to fill your needs. Alternatively, we can work with your company to create a job description, place advertisements, and interview to find smart reliable recruits who you can train to fit in with the company you have built, and who will maintain the standards you require.

Potential Client Base
More than a million trucking companies in the U.S. have twenty or fewer trucks, and they are all possible customers for this service. When a company decides it is time to grow, they have three choices for how to go about making that possible. The owner of the company can do all the work of advertising, interviewing, and hiring drivers or owner operators themselves. This choice decreases the amount of time the owner has to do other money-making and administrative activities, thus decreasing income for that time period. Alternately the owner can assign those duties to someone else within the company with the same results, dividing that person’s time and availability between their normal duties and recruiting. Or they could choose to seek outside help by hiring a recruiting service such as Howe Recruiting Service to take on the burden for them, assuring that their company grows with the best possible recruits for the job while not losing any productivity, time, or money.
As truckers and companies share information constantly, we hope that even larger companies might find the value of hiring Howe Recruiting Service to take the burden off their already hardworking staff, and to help multiply the production ability of their team. Larger companies can afford to hire extra employees for staffing purposes and may even have a Human Resources department with several employees diligently working on recruiting. Then all of the sudden a lane is awarded to them that needs 10 new trucks brought into the company within a week, that is when they will want to call us. We will be able to fill that need and will guarantee it. 

Logistics
Our customers will be able to purchase our services through our website, over the phone or in person. We will charge a one-time account set up fee of $600 dollars to each new business. We will guarantee to find a specific number of recruits for them within a specific time period, such as 10 recruits signed on in 3 months. Then they will be charged a monthly account maintenance fee of $350 for as long as they wish to retain our services and a per recruit fee of $350 dollars to be paid on the date of their first load . If the customer wants our liaison services they will pay an additional fee for each recruit we liaison for them of $300 at 90 days, 6 months, and 1 year. Our typical turnover time is 4 new recruits placed per week, per employee. We have the capability to staff a company with as many or as few recruits as necessary.
We strive for a long-term commitment from our clients, allowing us to fulfill their recruiting needs as they grow. We will then also help them to find and hire new dispatchers as they are needed. The dispatcher fee would be a graduating fee as the company grows and is earning more money: $1200 for the first $1400 for the second and $2500 for each thereafter.

Plans for Growth
Our plan is to grow our company as our customer's needs grow so that by doing a great job of helping them grow their company, we can also grow our own. We have unlimited resources for this company via the internet and social media that are free or low cost to reach out and find recruits for our company as well as for those we serve. In the beginning our company will be a small family-run business. I have been working as a recruiter for a trucking company for nearly six months, and love it. It requires me to use my writing skills, business skills, and sales skills all at once, and because I am a people person, it really fits my personal style.
There are many resources available to me through my current job and the people whom I have met. My husband is currently a dispatcher with the same company and has a degree in web design. He will be in charge of the website and our company IT person, as he can also build computers, fix computers, and so forth. Both of our sons are in college majoring in computer science, and can write any programs we need to do the work or keep track of recruits. I am going to have them create an Android application for cell phones and tablets that will promote our business, and that can be used to submit application information from any device. Also, both boys have worked with me in the past when I owned a store and are great salespeople, which translates nicely to recruiting.
Looking outside of our family for resources to help build our business, I have many friends in this area who own businesses and have helped me in the past with expert advice on marketing, advertising, management, accounting, and finances. I also have strong bonds with several past professors, and have sought their advice and knowledge on business ideas and topics. It is good when you have an entrepreneurial spirit to be a people person. I have found that people want to help you succeed; they are just waiting for you to ask.
The only upfront costs associated with starting a business such as this would be for the website, printed material, and advertising. In the beginning it would be run from our home with our computers that we already have. We also already own a printer/scanner/fax machine. We already pay for Internet and phone service. As the recruiting business grows, we may want to rent or buy a building and start bringing in employees who would be paid by the hour with bonuses for each recruit successfully placed.
Proof of concept for this business is already in action, I have the ability and knowledge to provide the service I wish to sell. Once a website is in place and a few businesses show interest in my service, then I can run the business in the evening while still performing the duties of my current position during the day. The best part of this is that my current employer would gladly switch over to being a client once Howe Recruiting Service is established. 


Ice House Opportunity Discovery Canvas

1. Describe the problem being solved the need being filled.
Small transportation companies don't have employees with the skills to be recruiting managers. They often do not know the Department of Transportation codes that must be followed. Many of these small companies have a high driver turn-over rate because they do not properly vet the driver in the early stages of the hiring process.
Hiring a new employee for the sole purpose of recruiting is costly for a small trucking firm that only has a limited need for such a person. Cross-training current employees to do recruiting is also costly and can lead to lack of productivity in both roles the employee is trying to fill.

2. Describe your idea for a product or service.
We will provide the recruiting professionals that transportation firms need. We will create a job description, seek out the right driver or owner operator to fill the position and then we will also act as liaison for the company and the driver for the first year helping to assure retention of the recruits we find. 

3. Describe solutions currently available.
There are many different recruiting firms and some of them will even recruit for the transportation industry. I only found one that was specifically transportation industry orientated and hired for drivers. Many recruiting firms only search for the account representatives, sales executive positions.

4. How is your product or service different?
We will meet with the company through either a face to face meeting or a virtual meeting. This will allow us the opportunity to get to know the leaders of the company and to get a feel for how we will need to acquire the specific talent the company wants and needs to meet their staffing needs. Each company will have a specific recruiter assigned to them who will also later act as liaison for the company and the recruit.
Create a job description for the company from the information provided. Many companies just take a job description from the company instead of creating one for them. Our transportation industry specialty knowledge allows us to create a description that attracts drivers and owner operators and gets more calls.
We will help the recruit to create a DOT acceptable application meeting all the current standards. Then we will verify their employment history, pull current MVR, DAC and PSP reports and make sure nothing in their past history disqualifies them. We know that each insurance company has different standards and will work with your insurance company to make sure that the recruit hired for the position meets and exceeds their standards. We will collect all the after hire documentation, such as copies of title, registration, reviewing company policies, etc.
We will provide liaison services for the company and the new recruit for an agreed upon length of time, up to one year, to help in recruit retention. Many times after being hired recruits have a disagreement or misunderstanding with their dispatch, who is their only link to the company, and will quit because they have no one else to turn to who is in their corner. Our company will help with retention issues because we are there for both the company and the recruit to give them someone to mediate and help the recruit feel that all his concerns are being addressed. The Liaison position will also give us the heads up if they just are not a good fit and then because of the experience our company should be able to correctly fit the recruit to another firm and the firm with the correct recruit.

5. How many people have this problem?
1,164,000 trucking companies in the U.S. have twenty or fewer trucks (http://www.truckinfo.net/trucking/stats.htm) they are all possible customers for this service.

6. How will you communicate your value to your customers.
We will create a website and print materials explaining our services and the costs. Then distribute information about us to companies and truckers using face to face meetings, telephone and email and social media. Truckers talk to one another and once a few are successfully placed with companies that fit their needs and personalities the word of mouth advertising will be amazing. Social media is important in communicating our value because we will be able to interact with businesses and truckers and showing each what we have to offer. The amount of interaction with customers in the beginning would be large because we will need to constantly be adding new customers even if they are just signing us on as a trial basis. I would assign an employee to a sales position and their job would be to expand our customer base by pitching our services daily to customers and truckers.

7. How will your customers buy your product or service?
Our customers will be able to purchase our services through our website, over the phone or in person. We will charge an account set up fee of $1200 dollars to each new business. We will guarantee to find a specific amount of recruits for them within a specific time period such as 12 recruits signed on in 3 months. Then they will be charged a monthly account maintenance fee of $300 for as long as they wish to retain our services and a per recruit fee of $250 dollars to be paid on the date of their first load. If the customer wants our liaison services they would pay and additional fee on each recruit we liaison for them of $250 at 90 days, 6 months, and 1year.

8. What evidence do you have that people will pay you for your product or service.
Recruiting is what I was hired into for my current employer, her company is small but growing and needed more trucks. I have learned many things working there; truckers switch companies frequently until they find a company and dispatcher that fits their personality and style. The most important part of recruiting is learning about the company and the recruit. We take away the advertising costs and the cost of hiring and keeping a recruiter in house for a company which saves them money and time.
There are other similar companies out there that do recruiting most companies only recruit for higher paying jobs and do so on a different style of fees. We take it a step farther with the liaison service no one offers that service to go with the recruiting.

9. How can you prove your concept without taking large risks? 
I am currently acting as a recruiter for a company, so I have the necessary experience and knowledge. I have already begun hiring recruiting helpers to help me with my job recruiting for the small company that I am working for now. I am not on my own yet but my employer has actually encouraged me that this is a great idea for a service and agrees that many companies would rather pay for the service than hire another employee. I would create the website and documents then test the waters and see how many people I had interested. In the beginning I could do the work in the evenings and if there was enough interest I could pull in family members such as my college age sons and my husband to help. Eventually I would hope to grow it to the point of hiring outside the family and quitting my job to run the company full time.