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This story appears in the November 2007 issue of Entrepreneur. Subscribe »

When Warren Carter was transforming his Chula Vista, California, executive search company from a two-person virtual organization to a more conventional model with full-time employees, the company lacked the processes and expertise to attract, hire and retain the employees it would take to fuel Qualifind Inc.'s plan for success. "[To] make that transition from independent contractors to search consultants on payroll, you have to create infrastructure," says Carter, 43. "We weren't big enough to put somebody at a director of HR level."

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