How to Start a Background Check Business
Starting a background check business can well lead you on the path of financial success if done correctly. Background checks are very common these days especially in companies when they are seeking to recruit new employees. Before ...
Starting a background check business can well lead you on the path of financial success if done correctly. Background checks are very common these days especially in companies when they are seeking to recruit new employees.
Before proceeding any further, let us first get to understand what a background check is;
In simple terms, it is the process of verifying whether a person is who they say they are. When conducting a background check, you typically search for a person’s criminal, education, employment and any other records of their past activities. Some examples of scenarios that may warrant a background check include; applying for a job, purchasing a firearm or looking for an apartment.
- Four typical types of background checks include;
- How to start a background check business
- Below is an elaborate step-by-step guide on how to start your background check business
- Why you should start your background check business
- Bottom Line
Four typical types of background checks include;
Employment background check
This is carried out on job applicants to prevent companies from hiring a person who might become a liability to the company. Some companies also make this a part of a regular schedule for all employees. This is done with the aim of creating a safe and secure workplace environment.
Criminal background check
Some industries have a strict policy against hiring someone with a criminal record. A criminal background check helps to determine if one has ever been involved in any criminal offenses such as violence, sexual abuse, fraud or embezzlement.
Universal background check
This is a necessary check especially when someone is seeking to purchase a firearm. A background check is done to determine whether the intending buyer is eligible to purchase a firearm. This seeks to establish if the person has any records that might deem him /her illegible such as a case of domestic violence, open arrest warrants, criminal convictions, misdemeanor and if the person is a fugitive.
Credit background check
This is done to determine one’s credit score. A credit background check is necessary when seeking to apply for any type of loans such as a car or home loan. This is also used by landlords to help determine if a person is likely to be paying their rent on time.
Also, employers are likely to run a credit check on employees who are working in positions that involves handling money on a regular basis.
How to start a background check business
Starting a background check business is in fact quite easy. You can start and run it from home up until your business grows then you can move to much bigger and more professional office space.
Below is an elaborate step-by-step guide on how to start your background check business
Decide on a niche
There are quite a variety of different niches in this business. Depending on your area of expertise or your preference you can decide which is the best niche for you to venture into.
Decide on a business model
This involves deciding if you are going to start your company from scratch, buy an already established business or purchase a franchise.
Starting a business from scratch can be a bit tedious since it will involve a lot of marketing before you are able to land your first client and a lot more time before you build to become a reputable business in the industry.
If you have money, it is advisable that you consider buying an already established company. This increases your chances of running a successful background check business. Another option similar to this is to buy a franchise. A franchise is going to offer you immediate success since you are starting a business that is already quite reputable in the business.
Conduct market research
Look at what others in the business are doing. Identify your competitors, know their strengths and weaknesses. figure out how you can capitalize on their weaknesses to make you stand out from the competition.
While at it, also ensure to learn what others in the same business are doing. If possible, find an entrepreneur in the business who will guide you on how best to go about this business.
Register your business
A background check business is a very sensitive business. So as to gain the trust of people and help you land jobs, you need to register your business and make it legal. This increases the level of trust between you and the corporate companies and individuals you will be working for. While at it, seek to get all the necessary documents and licenses that will allow you to run a background check business.
Market your services
Identify your potential clients such as human resource companies and send out pitches to them. Hand out brochures, fliers and business cards. Encourage endorsements through the word-of-mouth through your friends and family.
Create an online presence
Today, anyone looking for any product or service is likely to first conduct an online search for suggestions. A strong online presence is therefore a great asset for your company. Ensure that on your website you include contact details, the services you offer, email address and a working phone number.
Why you should start your background check business
- For as long as companies are hiring new employees or people are looking for apartments to move into, this business will always be viable and a profitable one at that.
- You do not need to have a special set of skills to do this job. All that you need to be able to do is to carry out an extensive background search and compile a detailed summary of all their activities
- Not expensive to start: there are no expensive costs of running this business. You can even start by working from home which eliminates all overhead costs and later advances as the business grows.
There are certain less desirable aspects that one might want to keep away from public scrutiny for various reasons hence they will not openly share them. However, during a candidate selection process, it is very paramount that the hiring or selecting party gets to verify the identity of their candidates so as to prevent any mishaps in the future.
In order to protect the candidate as well as the hiring company, everyone involved should ensure that they observe the guidelines set by the law. This, therefore, makes a background check a very important business that can turn out to be quite profitable.
6 steps to start a background check business.
- Decide on a niche
- Decide on a business model
- Conduct market research
- Understand the law in your area
- Register your business
- Market your services
- Create an online presence