So like many I’m begining down the journey of starting my business. While navigating all things “start up” it dawned on me there might be some gems out there from those who have already been down this road. Everyone knows hindsight is ALWAYS 20/20!
Incorporating
Website
Taxes
Insurance
Business Expenses
Payment processing
What did you do, and if you could do it all over again, what would have done differently?
Salute
Incorporating: LLC Have client sign a contract, always, before the start of the inspection.
Website: Yes, although realtor loyalty is your best marketing. Once you have it, realtor loyalty is very cost effective.
Taxes: Put away 40% of your gross income every week.
Insurance: Yes, of course. Make your health insurance a business cost and benefit.
Business Expenses: Keep good books, especially vehicle expenses. Keep a mile log and use it. Knowing your overhead is critical. It’s many times more then you imagine. Your vehicle is an expense. Know your mileage for work. Your phone is an expense, 100% - have a business number.
Payment processing: Cash, check, and credit card (I use paypal). Get paid before or at the start of the inspection, no exceptions. Use the NACHI Fee Calculator for your inspection pricing. You’ll be consistent in your pricing. When busy, up your fees a little to see how the market reacts. Never discount your fees.
Also, write down your hours, all of them. Keep them in a daily log book and spread sheet: Driving time and vehicle miles both ways at $0.70/mile, Preparation for an inspection including preparing your software and packing/unpacking your truck. Time at the inspection. Time walking around with the client. Time spent writing up your report. Time marketing (visiting realtors, web site, anything marketing)
This is a business. Treat it as such. Take a course in business management from your extension agency or community continuing education!
Offer ancillary services; radon is one for me along with energy audits. Out buildings are a separate charge ($50 > $100+ each) in addition to the inspection. Sewer scope, water test, radon mitigation are others, although I don’t do those.
I see you’re a veteran. Emphasize your home inspection and construction knowledge first. That’s what clients are looking for. Veteran and family are about your values and are important, but not top priority to your clients. If you have construction background, emphasize that. Clients are looking for that expertise. It’s a major selling point.
Your first concerns should be: Knowledge and Skills to perform inspections!
If you don’t have any, or can’t become proficient in them, then there is no point in anything else!
Lots of great advice Michael!
I agree, thanks Micheal for the input. I have been doing commerical inspections for 15+ years, but this is my first time working for myself and operating my own company. Appreciate the feedback as I venture into waters I’m not familiar with . . . so thanks again.
A few business continuing education classes at the community college are never a bad idea.
Biggest mistake. Incorporating: While incorporating can/may offer advantages, like limited liability, access to capital, and potential tax savings, it also comes with additional administrative burdens and costs.
I would not repeat that mistake. Additional administrative burdens like taxes and costs were not worth it. $2000.00 annually to do taxes. As well consider a book keeper.
Website: Yes. Keep it simple at first. You want calls.
Taxes: Put away 50% per cent of your gross income. Pay quarterly. Watch your dividends if incorporated.
Insurance: E&O. Expect over $5,000 in Quebec Canada.
Business Expenses. Gas, Tools, Advertising, Clothes.
Payment processing. Bank Interact in Canada. I also used Square.
Hope that helps.
Gotten a cushy government job with benefits 
Yeah, being your own boss really sucks 
I’m looking forward to that day 
Guessing you’re not married?
Yeah, good point… it is easy to look at the greener grass at times.
To OP, everyone is making good points. The basic business operation stuff is probably one of the things I underestimated. Filing quarterly taxes, gathering info for year end taxes, dealing with day-to-day business stuff. I often feel the easiest part of my day is getting out of the house to go do an inspection. No one thing running the biz is that difficult… there are just a lot of things to keep an eye on.
Two+ decades ago when I bought the multi-inspector company I was working for I had this idea that I just had to updated/change a few things and then I’d be done. You’re never done… there’s always something to deal with whether it be an immediate problem or something more subtle.
Or just want to enjoy life!?!? LOL! 
Not married? Well, not in the traditional sense but I do have a fantastic Partner in Crime and she also runs a 30 year business but with occasional drawbacks. I do miss MANY advantages of being an employee but wouldn’t trade that for the lowly existence of making it on my own in my HI business no matter how long it takes me…I’m on year 4 and things are looking up 
i’ve been in business for myself this time for over 12 years now and would not trade a minute of it to go back to work for someone else. third venture working for myself, but this one stuck. one thing i would recommend is researching the business type thoroughly. i read one comment about how an llc is not the way to go. that prompted this comment when i was just gonna scroll on by. that is one thing i would not do differently, due to the protection it affords you regarding protection of your personal assets in case of problems. but don’t take my word for it, hire a lawyer to discuss it with. i was lucky to have one in the family for that part. another thing i would change if i could is to have enough marketing money when i started. that would have made us profitable in the second year instead of the fourth. it was touch and go for a bit but if you can hold on through the first lean years you’ll do fine. at least you have lots of experience to build on and probably some contacts. good luck with it.
Same here. There are other reasons to form an LLC besides the corporate shield as you already know. There are a few tax benefits as well. I do not know what the Canadian tax structure is compared to America, but here it worked to my advantage.
However, I would not jump straight into an LLC if it is a part time gig. The efficiencies in an LLC begin around $30K. Another cool thing about an LLC is that you can operate many businesses under one company, just have a different DBA for each if you want. My LLC name is not my company name, nor will it ever be.
What I’m looking at now is business banking. Debating whether I should go with a mainstream bank like US Bank or something virual like Navy Federal Credit Union. I’d go USAA but they don’t offer business banking. Not sure if there are others things I should be considering . . . like ease of use for accepting/ processing payments? I know US Bank offers a free card swip/ reader. But I’d prefer to have payments done online through my website.
As for the rest, for better or worse, this is what I’ve done/ accomplished this week:
I have alot of moving parts going on right now. Appreciate everyones feedback.
I set aside a certain amount for living expenses until the business got going and a smaller amount for marketing.
I wish I had reversed those numbers. It took much longer than expected to gain enough business, and that ate through the living expenses.
Where as if I had spent more on marketing, I could have covered my living expenses quicker.
Thank you for your service Sir
Also don’t assume you’ll be busy. *(yes it can happen) but it does take time to build your name, and build credibility with realtors who will recommend you.
Commercial Inspections on my day job have keeping me extremely busy. Been working with alot of Engineers lately on as-built modifications to existing structures. Was hoping to take some time off to get my own business stuff squared away- but its been challenging as of late.
Are you good at reports from your commercial work? The process of documenting findings while on the property to publishing a report that effectively communicates the condition of the property is probably the most difficult skill to master. It includes choosing the right software that is efficient to use. Choosing software that produces a report that will be easy for the client and realtor to understand. You want simplicity in your report format, not complicated to navigate “computer fluff.” If you have not done so, read through the many threads here about “choosing software”.
Bank: Choose a bank that will work with you in the future as a lending partner. Hone inspecting does not require much capitol, but you want a full service bank that also serves businesses.