The Executive Search & Rescue Placement Firm will be targeting the emerging company market in the Portland metropolitan market. Portland will be targeted because 1) it is where Dan's network is located 2) Portland is a prime place for emerging companies, it is part of the silicon forest and has the most VC money on the West coast behind Seattle and the Bay area.
Within the emerging market, Executive will be targeting two groups, high-technology firms and non-high-technology firms. The high tech firms make up the largest group of emerging companies, up to 80% of the market. Those not in this segment, by default will be in the other group. Although most emerging companies are high tech, not all are and Executive can still provide value-added services for these companies and will not ignore them.
By virtue of Executive's clients being emerging companies, they typically have the highest growth rate among other companies. Growing companies need more people and this is how Executive fits in, they help find people (executives) for these companies.
Our customers can be divided into two different groups:
Executive is concentrating on emerging companies for the intuitive reason that emerging companies need executives more often then more stagnant companies. As a company grows, there is an increased demand for leadership.
Within the emerging company label, there are predominantly high technology companies. While this has been tempered somewhat by the recent economic slowdown these companies are growing at astronomical rates.
An example at just how fast some companies are growing is a non-Oregon (for illustrative purposes) company called eBay. eBay's CEO Meg Whitman used to be a executive at Hasboro Toys. After two years at eBay, Meg was worth more (from eBay stock) than the entire Hasboro family after over 30 years of business. Recently tech stocks have been hit, and eBay is no exception, however, they were hit less as they are a profitable Internet company. The point is that a lot of these companies are growing very fast and this is the perfect time and place for an executive search firm to fuel this growth.
There are two business models for executive search firms:
Portland currently has about six to 10 executive search firms. There are other search firms that handle many different positions other than executives.