Taking a saturated market by storm - founders of Arbor Group Inc. have made their firm successful by combining their expertises in employee training, outplacement services, and executive search - Brief Article

Nation's Business, Sept, 1995 by Roberta Maynard

Starting a business in a crowded industry in competitive New York City may seem like a recipe for trouble. But by using a big-company strategy, the three founders of the Arbor Group, Inc., have succeeded in taking on the Big Apple's corporate giants.

Amy Friedman, Jaye Smith, and Linda Kline developed a multiple-niche strategy by combining into one practice their three respective disciplines: outplacement, training, and executive search.

This approach allows them to offer the range of human-resources expertise, while other firms tend to specialize in only certain areas.

Before opening their doors, the women agreed that they would intensively cross-sell their services. Each partner introduced her fellow partners to each other's client base, a practice they were careful to continue after new clients began signing on.

They further their big-company image by offering niches within the three specialties. In the outplacement group, for example, counselors, who are cross-trained, specialize in employee categories such as creative people, networking for introverts, workers over 50, fast-trackers (such as investment bankers), and workers who tend to stay with employers for long periods.

The firm's research department, with a staff of three, is used extensively by the counselors to get information on companies and to track which companies are hiring which types of workers.

To convey a cutting-edge image, the firm touts its ability to address current workplace issues, such as executive coaching and fallout from mergers. It also highlights the cultural diversity of its group of counselors, which appeals to the large number of companies that are seeking help with their own diversified work forces.

"People really see us as being different," says Friedman. "Our staff reflects the real world: a combination of old, young, minorities. As a result, we're seen as having a new-generation approach, as dynamic and youthful."

The combination of big-company strategies and boutiquelike service has proven successful. In less than two years, the firm has grown from five to 15 employees. The partners expect revenues this year of $2.5 million.