Thinking about opening a leak detection services business? We tell you what you need to know to get started.
Detecting leaks is far from intuitive. In fact, consumers are more than happy to shell out big bucks to trained professionals with a proven track record of detecting leaks in hot tubs, swimming pools, and other residential plumbing systems.
Why is leak detection so important to consumers? In a word: Damage. Consumers are acutely concerned with minimizing the amount of collateral damage that is required to locate the source of leaks. Untrained service providers have no qualms about tearing apart walls, pools, and other structures to identify the source of a leak. Leak detection services, on the other hand, employ expertise and non-invasive detection methods to locate the leak and suggest a course of action that minimizes its effect on existing structures.
There are several business models in the leak detection industry, all of which have the potential for substantial profits. The most common business model is one in which the provider specializes in leak detection and consulting, but doesn't directly perform major repairs. The upside of this approach is that it reduces the business's capital requirements and creates a focus on a niche in the marketplace.
The best leak detection services use state-of-the-art equipment to identify leaks through non-invasive methods. This equipment can be expensive, so you will need to secure enough startup capital to cover the expense, even though you should achieve an adequate ROI in the first year or two of operations.
A background in pool & spa maintenance and/or plumbing is an obvious prerequisite for startup leak detection business owners. Although it's possible to compensate for inexperience through hiring, a few years spent working in the industry will provide valuable contacts with qualified repair companies – an essential for when you eventually specialize in leak detection.
Since your customers' priority is fixing the problem with minimal impact, you'll want to build a value proposition around experience, resources, and cleanliness. By assuring potential customers that your company can identify their problem with the lowest possible impact on their property, you create a justification for their investment.
Business Plans 101 for Leak Detection Services Business Startups
Startup entrepreneurs slave over the creation of their business plans, investing countless hours in the details of their startup strategy. Now it's time to address details about your industry.
Industry analyses are standard chapters in leak detection services company business plans and are often required by lenders or investors. Industry analyses are critical for contextualizing your startup within an industry setting.
To succeed, you'll need to be careful to avoid common industry analysis mistakes and to accurately represent your startup in an industry context.
Don't Ignore the Competition
Long before you open a leak detection services business in your area, it's worthwhile to see how strong the competition is. We've provided the link below to help you find competitors near you. Simply enter your city, state and zip code to get a list of leak detection services businesses in your town.
Before you open up shop, make sure you know what you will offer to your customers that provides a significant advantage over your competition's offering.
Learning More About the Industry
If you are seriously contemplating launching a leak detection services business, it's a smart move to have a conversation with someone who is in the business. If you think owners of nearby leak detection services businesses will give you advice, think again. The last thing they want to do is help you to be a better competitor.
On the other hand, an individual who has a leak detection services business in a different city can be a great learning resource for you, once they realize that you are not going to directly compete with them in their community. Many business owners are happy to give advice to new entrepreneurs It can take a while to find an entrepreneur who is willing to talk, but it's well worth the effort.
How do you find somebody who runs a leak detection services business in a different locale who can assist you?
It's not that hard. Just use the handy link below and enter in a random city/state or zipcode.
Gaining Access to Leak Detection Services Business Ownership
Common sense will tell you that to enter the world of leak detection services business, you'll either need to start a new business or acquire a promising company on the business-for-sale marketplace. Although startup leak detection services businesses are common, many new entrepreneurs overlook the benefits of buying a leak detection services business on the business-for-sale marketplace.
If you're on the fence consider this: There has never been a better time to acquire a leak detection services business. The down economy has resulted in a glut of available businesses, many of which can be acquired for bargain prices.
Don't Rule Out Franchising
You should know that your odds of surviving in business go up significantly if you become a franchisee and leverage their successful brand and track record.
Before you consider starting a leak detection services business, a smart move is to determine whether franchising might make your life much easier.
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 getting started as an entrepreneur may be of interest to you.
If you currently own a leak detection services business, these resources will come in handy:
If you sell to leak detection services businesses, you're in the wrong place. 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.