Feasible as a part-time biz?

Originally Posted By: Joe Skaggs
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Hi to all the inspectors out there!


I'm thinking about HI as a part-time side business for myself, and I'm curious about others' experience. Has anybody on this board built their business starting from part-time? Here's how I see the pros and cons shaping up.



PROS


1) I keep my current job.
2) I can weather a slow start-up period.



CONS


1) More evening and weekend time spent starting the business.
2) Limited availability (evenings and weekends)
3) Being perceived as a "dabbler" (although I don't have to tell people I have a day job...)
4) Less available time to MARKET the new business.

I've got some experience managing a small business, and I've learned about the importance of good marketing. I think #2 can be turned into a bonus, but #4 is a bit sticky.

I'm hoping that somebody who started his (or her, for that matter) business on a part-time basis will be willing to speak up about their experiences, and maybe even be a sounding board.

Thanks in advance!
-Joe Skaggs


Originally Posted By: ismetaniuk
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This membership was a big waste of my time!



Igor


Top To Bottom Inspections


Glen Spey, NY

Originally Posted By: Joe Skaggs
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ismetaniuk:


As a forensic engineer, I've investigated numerous failures and problems in homes, from water intrusion & mold damage, to pipe failures, structural failures, HVAC failures, and gas / electrical fire origin & cause. I've also got some experience in residential construction. Home inspections are a natural extension of what I do, except that I'm looking at broad areas for potential problems, rather than specific causes for a given problem.

The idea of helping locate potential problems is attractive to me -- I've seen a lot of burned-out homes, rotted walls, flooded basements & crawl spaces, and nightmare electrical distribution panels. Frankly, I'd like to be able to help some people AVOID those problems, rather than help their insurance companies recover damages (ie sue somebody).

I'm curious about other people's experiences during the start-up phase of their businesses. What unforseen start-up expenses did you run into? What marketing tools gave you the best results? What would you do differently, if you were starting over?

Thanks for your input.

-Joe Skaggs


Originally Posted By: John Davidson
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I would check out all the costs (like insurance, advertising, tools, ect) before you get into the business to fast. I work part time and I don’t think I would be able to support the big costs without a partner to share them with. Maybe you can call some inspectors in you area and work for them. You could learn the ropes and make some contacts. Then you can go out on your own when you?re ready. Just a thought icon_smile.gif



John Davidson


Morton, IL

Originally Posted By: gbeaumont
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Hi Joe


It would certainly appear that you would have a good background from which to enter the Home Inspection business, but a lot will depend on your states requirements (if any) for licensing and insurance. as these as previously stated will have a major influence on your start up costs and break even point. I think most self employed inspectors would agree that in the first year 100 inspections would be a very good start, and I know of many who only did 50. Given the average invoiced cost of an inspection at around $300 not including water, radon et al. could you survive at this level ??

Regards

Gerry


--
Gerry Beaumont
NACHI Education Committee
e-mail : education@nachi.org
NACHI phone 484-429-5466

Inspection Depot Education
gbeaumont@inspectiondepot.com

"Education is a journey, not a destination"

Originally Posted By: Joe Skaggs
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Gerry, John: Thanks for the feedback.


My state doesn't license or regulate the HI profession, so there's not too much for me to do there. I guess I'm not really considering a total jump from what I do now to doing HI's only, but more of a supplement. Even if I only do one or two inspections a month, I think I can still make a decent ROI, provided that I keep overhead as low as possible. I'm working on my "what I will need" list now, then I'll put costs to it once I think I have a decent list. Here's my first shot at a list:

Start-Up Expenses:

LLC Incorporation
NACHI Dues icon_smile.gif
FAX machine
Dedicated cell phone
Domain Registration / Website hosting
Marketing materials (flyers, biz cards, etc etc)
Extra Gas for Driving Around (marketing materials drops)
Little Giant Ladder

I already have most of the tools I will need, with the exception of the folding ladder. I'm really waffling on the E&O insurance -- I know some people use it, others don't. In an LLC company, with minimal capital, I'm not sure there's all that much risk. If capital investment in the company is high, then you may need E&O to help protect it.

Anyhow, these are just some of the ideas I'm kicking around, so please take some potshots at it. Thanks again for your input.

-Joe Skaggs


Originally Posted By: Blaine Wiley
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Joe,


In this litigous society, I would not even consider working without E & O insurance. It is required here for my license, but you can get sued for anything. Realtors here and in Virginia (where I used to live) won't even hand out your card or brochure unless you are insured. E&O is my most expensive overhead item, and I hope I never have to use it, but I'm glad it is there!

Blaine


Originally Posted By: ismetaniuk
This post was automatically imported from our archived forum.



This membership was a big waste of my time!



Igor


Top To Bottom Inspections


Glen Spey, NY

Originally Posted By: Gregg Rafalsky
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I am also thinking about starting part-time to break into the business. I also share some of the concerns that you have brought up. My plan is to partner with some other guys to insure we are able to service the clients during the week. It sounds good on paper, but we will see.


Originally Posted By: jhagarty
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icon_question.gif



Joseph Hagarty


HouseMaster / Main Line, PA
joseph.hagarty@housemaster.com
www.householdinspector.com

Phone: 610-399-9864
Fax : 610-399-9865

HouseMaster. Home inspections. Done right.

Originally Posted By: ekartal
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If you do not have E&O Insurance your personal assets are up for grabs. It does not matter how you set up your company. icon_eek.gif icon_biggrin.gif



Erol Kartal
ProInspect


Originally Posted By: jhagarty
This post was automatically imported from our archived forum.



icon_question.gif



Joseph Hagarty


HouseMaster / Main Line, PA
joseph.hagarty@housemaster.com
www.householdinspector.com

Phone: 610-399-9864
Fax : 610-399-9865

HouseMaster. Home inspections. Done right.

Originally Posted By: kluce
This post was automatically imported from our archived forum.



ekartal wrote:
If you do not have E&O Insurance your personal assets are up for grabs. It does not matter how you set up your company. icon_eek.gif icon_biggrin.gif


Erol Kartal
ProInspect


In Indiana, if you run your business right, that wouldn't be a true statement. Separating your business and your personal life is the key. They cannot take my house or my child's college fund. Why spend all that money to a lawyer for LLC or inc?

E&O is not there for the client. It's there for the companies protection so the company doesn't have to file for bankruptcy or go into financial difficulty.


Originally Posted By: kluce
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jhagarty wrote:
Kevin:

You may be correct in Indiana. I do not know nor am I aware of Indiana law.

I still go with Erol as to what I know of PA.


I think that's just silly in PA. To run a company and go after you personally. Why become LLC or inc? Just wondering.

To get back on the subject. When I moved to Indiana from Kentucky, I started up my own HI business. I worked for a heating company 3 days a week for 18 months and found it hard to do both jobs at the same time. Big difference since I went HI full time. Looking back, it gave me the safety net but would never tell somebody to do HI and work a full time job also. If it can be done right, they are a better worker than I am. icon_neutral.gif