I have been thinking of doing this for a few years, I am so close to pulling the trigger... But yet, apprehensive. Reasons I am ready to pull the trigger: I want to be my "own boss". Be the man instead of working for him. Set my own hours. Reap the benefits of my hard work. I can most likely do this job in conjunction with other jobs. Potential to provide more for my family. Reasons I am apprehensive: Placing myself and family in uncertainty whether it will work out or not. I have never operated my own full fledged business (I do not count the side work I do as a business). No idea how to handle all of the tax stuff and regulations. So, if any of you have any thoughts or some advice to share, please do!
With the current housing market still in a free fall and not hit bottom yet I would hold off until after 2013. Regardless of who is in office interest rates ARE going up next year. The debt is too high for them not too.
Do you have the resources to get your business to potential customers beyond your circle of friends and family?
Yes, I believe so. Yellow pages, google search etc. Most people do not know a home inspector, they must look them up via the web or phone book. Banking on friends, I also have two friends who are realtors at the largest agencies in my area, Howard Hanna and North Woods realty. Also, dropping off pens and paper tablets off at real estate offices with contact information printed on them. Open to any other advertising ideas as well if I go through with this.
Quick books is fantastic,cheap and easy to use. Your looking at a hard field to work in, theres no more corrupt field than real estate, if your to hard on a house they will find a new inspector,if you pass on some small issues then the home buyers get pissed. Thin ice on both sides of the table unless you live in a huge market with unlimited potential. Working for your self is the only way to go, give it a try, theres plenty of other jobs out there if both you and your alarm clock work.
After watching "Holmes on homes" I was shocked about how little some people know about houses before they go shopping for one. And the mistakes that people make with venting and electrical work that could cause a family to loose their lives. You might just save some one more than money one day,that would be a great feeling.
I have a ton of respect for you to consider this Scott. It's not an easy decision for sure. The Mad Bass thing certainly isn't a full time thing for me, but I'm sure it will be around for a long time and I learned a lot from starting it that I hope to apply to something else in the future that will be full time. I really did it for the knowledge I knew I would gain on starting a business. I'm probably a couple of years away from pulling the trigger on something else that's full time, but I'm already armed with a ton of knowledge. I'd really like to end up in either the storage unit business and/or a small rural liquor store down the road. A few things I'd suggest as you move forward........ Absolutely you need to speak with a lawyer to discuss LLC vs. S Corp vs. C Corp options. You need to protect your personal assets from any liability the business may have. I imagine a building inspector can have a ton of liability as well if something inspected goes wrong. A good buddy of mine had to collapse his HVAC business this year due to a bad business partner and it's going to kill my buddy financially. He would have been completely protected if he paid the $$ and did the paperwork to get the business incorporated ahead of time. If you are going to get a branded name and/or logo as well you may want to get them trademarked to protect them as a business asset, and to protect you from anyone else that feels you are infringing upon their trademark or IP. I've done a bit of this type of stuff with Mad Bass and www.legalzoom.com can be a great asset if you don't have a good lawyer already that is well versed on this type of stuff for trademarks, IP, and LLC/S Corp/C Corp. You may want to consider looking at a franchise. A lot of them can have a business plan in a box and it may be well worth it to you if you get the support from headquarters as you learn things. A quick google search I just did turned up a long list of franchise options for a building inspector business. I have a good buddy that purchased an IT Services franchise a few months ago and he's doing very well with it and getting a ton of support from his corporate office. They want him to succeed because if he does he will pay them royalties. You may also want to see if there is an independant not for profit business association for building inspectors. A lot of the time you can find trade associations where they have regional peer group meetings you can learn from, or online resources like forums, etc. Tons that can be learned from there. I really hope you can find a way to make this happen and find success with it. I'd love to hear more too in the future if you care to update.
Rick brings franchising, Mr. Handyman is one I worked for the parent company. Let me say this, those who follow the model and work hard succeed in a franchise business. You will pay 7 percent royalties on labor and 3.5 percent on material. As a company for corp sales Mr. Handyman sales have been going down since 2008. If you go franchise route be sure to talk to owners, and not the ones they give you
Just a thought to try and add a little more to what Hooker started saying about contacts and leads. I have several friends that are real estate agents that need to use home inspectors before the close/sale of a home. If you do decide to do this, it might be a good idea to contact a few local offices to get your foot in the door. Once they start using you as their go-to, and see the work you do, it might start to pay off well for you. Sent from my HTC One X using Tapatalk 2
Is it possible for you to get certified and start inspecting on the side? The guy that inspected our house works full time for the County. Seems like they make a killing for all the more time time they put into it. I think ours was around $400. We had an inspection that was around an hour and then a word document with pictures and captions.
Tough business to get in and stay in. You almost have to be hooked up with a couple large real estate companies and banks. It's your job to find things wrong. If and when you do that, you tick off the realtor. If you cause them a sale, you aren't getting their business so easily next time. My brother has a friend who went to the school and got his license a couple years ago. In this market he wasn't getting enough business to botherr paying for renewel of his license. Big towns like DC, Baltimore etc where the economy hasn't taken such a hit it's better... but still a tough nut to crack and develope.
If you are starting your own business is to talk a lawyer or a CPA. You have to protect you self and your family from the sue happy people. Then look at the market,to see if there is enough house's a month you need to make ends meat. A solid business plan always helps when you are starting off. I've met you a couple of times and think you would be a good at whatever you put your mind to but every home inspector I've met has been the dumbest trade school flunky around, I think the Realtor's want a flunky inspecting so they can't find anything that isn't obvious. Realtor's need to be greased also if they are going to recommend you. Whatever your decision is I wish you the best of luck.
I can relate to this. I have been a home inspector.. and I was a damn good one too. But that is the problem. To be a successful home inspector you need to mingle with realtors since they give you most (90%) of your business.. and quite frankly.. they don't like good inspectors.. because good inspectors find things and they hate that. To do that job (which I did for nearly 6 years).. you gotta be willing to lie and cheat a little.. that's the only way inspectors stay tight with realtors. I didn't succeed because I was too good.. and was honest with my clients.. and it pissed off my realtors until I had none left. Which is why I laugh at tv shows like "Holmes on Homes"... gimme a break.. that dude is so full of crap it's not even funny. The business part is pretty easy.. its the lying through your teeth I couldn't take. I'm too honest. If you're like me.. it's not the business for you.
Thanks for all of the thoughts you guys have passed... Please add more if they come to you. Foreclosures are a big thing in my area and there are a ton of inspections on them... Some with multiple inspections... I know a lot about foreclosures from all of the rehab work I have done on them. I want to get in on that niche as well as regular new builds and used homes. Duke, I completely understand what you are saying... I am a very honest guy myself. I mean really though, if you do let things pass you are asking for lawsuits, no? That's something I want nothing to do with. Did you, or do you do energy audits?
Lawsuits? Ha! Did you ever see the long list of disclaimers the home inspection guys have on their forms? They are not responsible for anything. One thing I would never do is take the home inspector that the realtor recommends. For reasons already mentioned. At least you have a good shot at a fair shake if you bring in someone not affiliated with anyone.
Not sure if there are any groups in you area, but Look into BNI (Business Network International). It's a marketing group I was a part of when I lived in Duluth. I made a ton of great contacts (and friends) through this organization and got a ton of business pushed my way. It also never hurts to get in touch and involved with your local Chamber of Commerce.
Is there something similar but maybe not quite the same? Maybe like a business helping people get their homes "stage" ready before going on the market. I did this to a house we sold a few years back and our realtor was blown away by the changes we made in only a few days. You could partner with some contractors and with home-owners to connect people with people who know how to repair those nagging issues that most houses have. Just a thought...
Scott I wish you the best if you commit!! I imagine its scary at first making a move like that but im sure you will make it work out ok!
