Operating a inspection business is as complex as the components of a high tech property mixed with components of a 100 year old home. 

To be successful, plan on being educated about all aspects of your business ranging from the “roof and attic” to the “foundation” of your company. 

Let’s start with your foundation.

Initial setup for your company

1. If you have partners create a clear and concise written agreement on responsibilities of each partner as well as a financial and profit and loss agreement
2. Obtain an EIN from the Federal Government (IRS) http://www.irs.gov/businesses/small/article/0,,id=102767,00.html
3. Set up your company as an LLC, corporation or sole proprietor whichever is best for your state and situation.  I would recommend seeking professional advice from a licensed CPA and/or financial planner.
4. Open up a bank account using your EIN number and business address even if your business address is based at home.
5. Set up an account to be able to accept credit cards — http://www.totalmerchantservices.com
6. Apply for and obtain a company credit card
7. Have your state inspector license or appropriate designation activated and in good standing
8. Shop for and secure proper Errors and Omissions insurance for at least one million dollars in coverage.  I would also suggest a possible corporate blanket especially if you have other inspectors on your team.
9. A company land phone line and cellular telephone is best.
10. Have a company website created.
11. Order business cards that includes email address and website information.  http://www.overnightprints.com
12. Order company letterhead or just a logo so you can attach it to a word document for correspondence
13. Office copy/fax machine
14. A high speed internet connection is a must
15. Create and order brochures with a current price list. Price list should be an insert and not part of the brochure.  This allows for easy adjustments.
16. Choose your electronic onsite inspection software as well as software to do your scheduling, business reports, data storage, etc.  Being part of the Inspection Support Network™ (ISN) and eInspections™.  I am sure I am biased of our product so to be an “unbiased” contributor to Inspectorchat.com, I will offer that if you want to “test drive” the most diverse reputable, growing inspection software leaders I would recommend you investigate

    A. eInspections™ onsite inspection report.  http://einspections.net
    B. Inspection Support Network™ (your office solution).  Call 800-700-8112
    C. Home Gauge -  http://www.homegauge.com
    D. 3D – http://www.3dinspection.com 

17. Choose or purchase your laptop, tablet or micro pc – http://www.dell.com, http://www.samsung.com, http://www.sony.com – Check out Chris Schuld’s article here on http://www.inspectorchat.com entitled “Time for a New Laptop; Picking the Cherry in a Field of Grapes.”
18. Secure an inexpensive durable digital camera.  If you are going to use it for only work get an inexpensive camera, they work great.
19. Consider company shirts or jackets.
20. Decide what tools you will carry with you on your inspection and in your truck.  Here are some suggestions;
    A. Carry 3 copies of your inspector’s license in case it is requested.
    B. Copy of your automobile insurance showing your inspection company as an additional insured.
    C. Appropriate ladders.
    D. Laser thermometer for checking temperature drops.
    E. Moisture meter.
    F. Water pressure gauges.
    G. Coveralls, disposable booties, safety goggles, mask and a hard hat.
    H. Bucket with a cup and towels for any needed cleanup.
    I. Basic hand tools to include at a minimum are; a volt stick, outlet tester, fireplace gas log keys (long & short), flashlight, Allen wrench, screwdrivers (regular & Phillips), extra batteries (9 volt, AAA & D), hand held lighter, 3 to 2 prong electrical adapter, bolt cutters, razor knife, light bulbs and appropriate fanny pack if you desire.
    J. Road side emergency kit.

    Your tools needed on your truck are certainly dependent on your area, weather, what type of inspections you perform and your personal business views.

21. If you are going to have inspectors who are not partners decide if they are going to be employees or independent contractors.  Check with IRS guidelines to insure what is best for your company while staying within legal guidelines depending on the specific workings of your company.
22. Create an employee and/or sub contractor agreement to be signed by all inspectors, sub contractors and office staff if appropriate. 
23. Choose what your pre inspection agreement will say.  Check with your state and local authorities as well as your Errors and Omission carrier.  Your state and national professional organizations such as

    ASHI (American Society of Home Inspectors)  http://www.ashi.org
    NAHI (National Association of Home Inspectors)  http://www.nahi.org
    CREIA (California Real Estate Inspection Association) http://www.creia.org
    NACHI (National Association of Certified Home Inspectors) http://www.nachi.org
    AII (American Institute of Inspectors)  http://www.inspection.org
    CAHI (Canadian Association of Home Inspectors)  http://www.cahi.ca
    OAHI (Ontario Association of Home Inspectors)  http://www.oahi.com
    
    These and other professional organizations can offer guidance as well as top notch education and networking.

24. Contact your vehicle insurance carrier about proper commercial coverage for you and your other inspectors if applicable. 

Now you have the foundation poured for your company.  Let’s talk about your business and detailed marketing plan in the future.  Look for my next article on http://Inspectorchat.com in the very near future. 

May you have success and good health as you pursue your dreams!

Dan Huber, CRS, GRI