Private Investigator Business Plan, Marketing Plan, How To Guide, and Funding Directory
The Private Investigator 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 Private Investigator 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 available for download after your purchase.
Product Specifications (please see images below):
- Bank/Investor Ready!
- Complete Industry Research
- 3 Year Excel Financial Model
- Business Plan (26 to 30 pages)
- Loan Amortization and ROI Tools
- Three SWOT Analysis Templates
- Easy to Use Instructions
- All Documents Delivered in Word, Excel, and PDF Format
- Meets SBA Requirements
In every economic climate there is an ongoing need for outsourced private investigation services. These individuals and companies are able to generate substantial revenues by rendering background checks, surveillance, and other legal services to corporations as well as attorneys. From time to time, private individuals will also retain the services of a private investigator especially when they suspect something is going on with a family member. As such, display any negative change in the economy or an economic recession – private investigators will always have a source of employment. The barriers to entry for a new private investigation firm are relatively low and most states to require that a private investigator is duly licensed in order to provide services within the state.
Many private investigation firms and their employees are typically former members of law enforcement agencies. Although it is very easy for anyone to become a private investigator or hold them out as such, it is typically people that have had substantial experience within the law enforcement field that enter into this private industry. The startup cost associated with the new private investigation firm are relatively low in most of these businesses can be started for as little as $20,000.
Typically, the biggest upfront expense for a new private investigation firm revolves around the acquisition of a small office as well as a vehicle in order to commence operations. However, some individuals choose to store a larger scale private investigation firm from the onset of operations by hiring several staff investigators. In this case, the startup costs associated with this type of business can range anywhere from $50,000 to $100,000. The gross margins generated from private investigation services is typically very high and most firms have a 90% or higher gross profit. If outsourced labor is used, this may be considered part of the cost of goods sold expense and may decrease the overall gross profits of the business.
Given that this is a service based business, most financial institutions are willing to provide a working capital one credit to assist the entrepreneur with launching their initial operations. Of course, a private investigation firm business plan is going to be developed. This business plan should feature a three year profit and loss statement, cash analysis, balance sheet, breakeven analysis, and business ratios page. Within the United States, there are approximately 27,000 companies that render private investigation and background search services to the general public. Each of these firms generate $6 billion in revenue and provide jobs to about 70,000 people directly. It should be noted that there are a number of independent contractors and individuals that operate on a freelance basis as it relates to private investigation services.
Within any given market there is usually modest amount of competition from people that render private investigation services. It is important that the business plan feature a section of the analysis that showcases the competition within the market concurrently showcasing the demographics of individuals, corporations, and law firms that the firm will target in order to generate revenues at the onset of operations.
A private investigator SWOT analysis is typically produced as well in conjunction with the business plan, marketing plan, and startup checkout list. As it relates to strengths, these businesses are always able to remain cash flow positive and they have moderate barriers to entry given the fact that a background in law enforcement is a necessity in order to do wellness business. These companies are able to generate highly predictable streams of revenue provided they have ongoing relationships with attorneys within the target market. The startup costs are considered to be very low.
For weaknesses, there is a substantial amount of liability that comes with being a private investigator. As such, an entrepreneur that is looking to enter this industry should have a significant amount of experience as a law enforcement officer for a complete understanding of the laws that pertain to private investigation. It is important that these businesses retain a qualified attorney that will guide them on what is appropriate and what is not as it relates to rendering the services to the general public.
For opportunities, these businesses can rapidly expand by hiring additional staff investigators that can aggressively boost the revenues of the business. Additionally, ongoing relationships with attorneys as well as law firms allows these companies to develop service contracts will produce highly predictable streams revenue. Although it is not often done, some private investigators will acquire firms that are already in operation and of establish a strong brand name.
For threats, minor changes in regulation can potentially impact the way that a private investigation firm conducts operations. However, this is one of the mainstay industries as it relates to legal support services. As such, only a major overhaul of federal law would have an impact on the way to a private investigator conduct their business.
A private investigator marketing plan is typically developed as well in conjunction with the business plan and SWOT analysis. Foremost, the quickest way for a private investigator to develop relationships with attorneys is with these businesses are able to become profitable very quickly. This is probably the most important aspect of operations given the fact that it is mostly attorneys – especially divorce attorneys – they retain the services of a private investigator for high profit surveillance services.
Local employers as well as employment agencies are also good places to develop ongoing relationships with given the fact that many of these firms will outsource the background check necessary when hiring a potential applicant. Background check services can provide an ancillary stream of smaller secondary revenue that the business can depend on for an ongoing period of time. Background check services often act as a very strong and highly predictable revenue center for most private investigation firms.
As with any business, a substantial presence on the Internet should also be planned on when developing the private company. This website should showcase the biographies of the staff investigators, hours of operation, previous client testimonials of applicable, preliminary pricing information, and the scope of the private investigators services. This website can be with them all major search engines. Although a presence on popular social networking platforms such as FaceBook, Twitter, Instagram, and Google+ helpful for most businesses – most private investigation firms do not typically maintain pages on these platforms. A review webpage on Yelp is sometimes developed as well in conjunction with boosting the initial visibility of the business. One of the reasons why most private investigation firms do not have a substantial online presence outside of a standalone website that most clients are looking for a strong degree of discretion when hiring a private investigator.
Private investigation firms will always be very important businesses to most companies that require ongoing legal support services. Attorneys, law firms, financial companies, as well as other businesses that handle sensitive information was always conduct thorough background checks as well as private investigations on potential employees and applicants. Divorce attorneys and related legal practitioners legally call on private investigation firms to gather evidence for family disputes. As such, these firms are almost always able to remain profitable and will be in continued demand for the foreseeable future.