Thinking about opening a skip tracing business? We tell you what you need to know to get started.
Skip Tracing Business Basics
Many people exclusively associate skip tracing with the rough and tumble world of bounty hunting. But in reality, tracking down skipped bounties is only one aspect of the trade. Today's skip tracers are called to perform a range of tasks, nearly all of which require more brains than brawn.
As you begin to plan you skip tracing startup, you'll need to consider multiple constituencies for your target market, including attorneys, debt collectors, private investigators, journalists and other parties who are desperately trying to locate individuals whose whereabouts are unknown.
Setting Up a Skip Tracing Workplace
Many skip tracing businesses are operated out of a personal residence; others lease a small storefront or commercial office space. Either way, technology will be your most critical business asset. Computers, printers, Internet connections and other technological assets must be in place before you accept your first clients.
Yet technology isn't the only important element in a skip trace startup workplace -- processes and protocols are equally important. Skip tracing is a regulated business activity and your operation may be limited by laws such as the Fair Credit Reporting Act and the Gramm-Leach-Bliley Act.
How to Find Clients for a Skip Trace Startup
After you have executed your startup business plan and are convinced that your skip trace startup is ready to go, securing clients will be the next job on your to-do list. And in skip tracing, you'll need to aggressively pursue targeted prospects.
Skip tracing is a B2B business that requires effective selling strategies. Although you could identify a list of targeted sales prospects on your own, a far more efficient method is to purchase a lead list from a third-party lead list provider.
Tips for Writing a Skip Tracing Company Business Plan
You know that a business plan is important. The only problem is that you don't have any idea how to write one.
The good news is that business plan help may be closer than you think. There are plenty of useful solution designed to assist skip tracing business entrepreneurs in business plan writing.
Our Business Plan Help section discusses some of the business plan resources other entrepreneurs have found useful.
Look Over Competitors
Prior to opening a skip tracing business in your town, it's a smart move to determine how you will fit in the competitive landscape. Use the link below to find competitors in your area. Simply enter your city, state and zip code to get a list of skip tracing businesses in your town.
Is the established competition doing a good job? It's important to understand their strengths and weaknesses and think through how you'll stake up against those established businesses.
Learn from Others Who Are Already In This Space
If you want to open a skip tracing business it's a wise move to talk to somebody who is already in the business. It's very unlikely that the local competition will talk to you. What's in it for them?
On the other hand, an individual who has a skip tracing business in a different city can be a great learning resource for you, as long as they don't view you as a competitive threat. Many business owners are happy to give advice to new entrepreneurs If you are persistent, you can find a business mentor who is willing to help you out.
How do you locate a skip tracing business manager who is willing to talk to you but doesn't live nearby?
Here's one way to do it. Just use our link below, find somebody and call them.
Benefits & Drawbacks of a Skip Tracing Business Acquisition
Although there are significant benefits to buying a skip tracing business (rather than launching a startup), it's important to weigh the pros and cons before you commit to a purchase scenario.
PROs: Acquired skip tracing businesses should be profitable right out of the gate; they should also be capable of demonstrating a loyal customer base, brand identity and operational efficiencies.
CONs: Acquired skip tracing businesses sometimes have entrenched processes and systems that run counter to your business objectives. If an acquisition target appears unmalleable, move on to another prospect.
Franchising May Be a Better Way to Go
Your chances for doing well in business greatly improve if you opt for franchising instead of doing it all on your own.
Before starting a skip tracing business, you ought to determine whether buying a franchise could be worth investigating.
The link below gives you access to our franchise directory so you can see if there's a franchise opportunity for you. You might even find something that points you in a completely different direction.
These additional resources regarding starting a business may be of interest to you.
If you already are in business and came here to learn about growing an existing skip tracing business, these resources will come in handy:
If you came here to learn about selling to skip tracing businesses, this isn't the right place for you. These resources are more appropriate for you:
If you are interested in starting a different kind of business, please browse our directory of guides below.