Background Check Service Business Plan and SWOT Analysis

Background Check Service Business Plan, Marketing Plan, How To Guide, and Funding Directory

The Background Check Service Business Plan and Business Development toolkit features 18 different documents that you can use for capital raising or general business planning purposes. Our product line also features comprehensive information regarding to how to start a Background Check Service business. All business planning packages come with easy-to-use instructions so that you can reduce the time needed to create a professional business plan and presentation.

Your Business Planning Package will be immediately emailed to you after you make your purchase.

Product Specifications (please see images below):

  • Bank/Investor Ready
  • Complete Industry Research for the Industry
  • 3 Year Excel Financial Model
  • Business Plan (26 to 30 pages)
  • Marketing Plan (24 to 28 pages)
  • 425+ Page Funding Directory
  • PowerPoint Presentation
  • Loan Amortization and ROI Tools
  • Three SWOT Analysis Templates
  • How to Start a Business Guide
  • Easy to Use Instructions
  • All Documents Delivered in Word, Excel, and PowerPoint Format
  • Meets SBA Requirements

Given the increased number of online profiles that people maintain these days as well as having a tremendous amount of information now stored electronically, background check services have become a very useful tool among prospective employers to understand the lives of their employees. While background check services have been around for many decades, the demand among employers to have comprehensive background checks completed has grown substantially over the past 10 years. This is especially true given that the influx of information about individuals has increased significantly given the power of the Internet. Most background check service companies work specifically with law firms, private investigation companies, as well as directly for large employers. Many of these businesses also maintain an online platform that allows the general public to do a comprehensive background check on a specific individual. The barriers to entry for this type of business are considered to be moderately high even though this is a relatively small industry. This is due to the fact that many background check services must have owners that have private investigation licenses in certain jurisdictions. Given the fact that these companies search for sensitive information – is important that an entrepreneur looking to get into this field ensure that they have all the proper licenses in place in order to develop this type of company. Generally, the startup costs for this type of business range anywhere from $100,000 to $200,000 in order to get the licensure and platform online so that background checks can be completed on behalf of customers.

Most of these businesses are usually started capital provided by the owner or a third-party investor. Given that these companies do not usually have a substantial amount of tangible assets are being purchased, most financial institutions will only provide a working capital line of credit once the business is off the ground. However, there are specialized programs available through the small business administration that allow for an entrepreneur to receive a startup business loan specific for a specialized service business. A background check service business plan is going to be required as well. This business plan should include a three-year profit and loss statement, cash flow analysis, balance sheet, breakeven analysis, and business ratios page with industry statistics that are in line with other background check services and private investigation firms. As it relates to the demographic analysis needed for this type of business plan a special focus on the companies that will be targeted as ongoing customers should be thoroughly discussed. This includes over viewing annual revenues, industry type, number of background checks needed to be process each month, and the type of sensitive information that a prospective employee will be handling if they are approved for a job. Again, the most common users of background check services or large-scale employers, banks, financial service companies, law firms, and private investigation firms. As such, these companies do to develop a laser focused marketing campaign that will allow ongoing purchase order relationships to be developed.

As it relates to the background check service marketing plan, this can be somewhat on a minimal side given that ongoing relationships with individual companies must be developed. Most importantly, a background check services going to need to develop an expansive online platform that allows individuals to see the entire scope of the services also being able to conduct these transactions online. Most background check services do have websites that feature e-commerce functionality so that the general public can run a check on any individual within the United States. A presence on social media platforms such as FaceBook, Twitter, and Google+ is not really required in order to ensure that these businesses are successful. However, many entrepreneurs will develop social media pages in order to further boost the brand-name visibility of the business. One of the other ways that these businesses are able to generate revenues from the onset of operations is by developing ongoing relationships with third-party private investigation firms. Given that these companies typically do not want to invest in the substantial cost associated with the building this type of service – they will work with companies in order to have this outsourced. As such, this can be one of the ways of the business immediately generates revenue from the onset of operations.

A background check service SWOT analysis should be created as well. As it relates the strengths, once established the background check service will enjoy moderately high barriers to entry given the high startup costs as well as the ongoing licensure needed to operate this type of business. For weaknesses, there are always going to be considerations that need to be taken into account as it relates to operating this business within the letter of the law. An attorney that is familiar with information law should be kept on retainer to make sure that the business is operating within legal parameters at all times. As it relates to opportunities, many background check services will hire independent sales agents that will seek to develop ongoing relationships with the aforementioned entities. For threats, this is one of the areas where there can be a significant change as the way these businesses operate given the number of hacks among large consumer databases over the past two years. As such, a qualified attorney assist a background check service with ensuring that the business complies with all regulatory changes that may occur.