How to Open a Bail Bond Business
Opening a bail bond business is a dream for many law buffs. It can be very lucrative for retired policemen and others with experience in the law. It is an expensive venture and one that should be taken on with caution.
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Instructions
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Research. Simply put, the first step to opening a bail bonding company is research. State laws vary so the most important bit of research to begin with is to find out if your state allows for inmates to use the services of a bondsman. Call your sheriff's department or jail. If your state does allow bondsman services, you're ready for more research. Look in the phone book for bondsman in your area. Make a list of all the information you need to know before calling each bonding company. Ask questions like "How long have you been in business?" and "How many bondsmen do you employ?" These questions help you to put together your business plan.
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Write a business plan. You might also call it a business model. You need this to get a loan to start your business and if you should need a business loan in later years. Any lender will need to see a detailed business plan before loaning you any money. It also serves to keep your business on track. When you write your plan, you will have a section dedicated to how your business will progress over the years. This will help to keep you on track and meeting your goals.
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Contact the state department of insurance and commerce to find out how many hours of classroom instruction you are required to take before obtaining your license. You will need to complete the class with at least the minimum required grade point average before you will be issued a license.
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Obtain all permits and licenses. This is an important step in the bail bond business. This industry has very stringent rules. The punishment for any infraction is severe and can cause your entire business to be shut down. Call your states department of insurance and commerce to find out what permits you are required to have and make sure that you meet all prerequisites such as age, criminal history and fingerprint requirements. You will also need a business license and you can get that by visiting your town's business administrative office. You will also need to become bonded and insured before you will be given a license. This will all be included in your classroom instruction.
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Scout out the perfect location for your bonding company. Most bonding businesses do well in the near a jail. Choose a building that is in a central location to the most traffic and that has enough room for an office and a waiting room. Make sure you have adequate lighting and alarm devices if you will be storing cash inside.
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Decide if you will be hiring employees or running the business alone. If you choose to hire employees, you must vigorously check their backgrounds and criminal history. Make sure they have all the required identification and hold their own permits, licenses and bonds. A mistake here can cost you your business.
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Open your doors for business. Your business plan contained a marketing section for obtaining customers who should be rolling in the door at this point or perhaps calling from behind locked doors.
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Tips & Warnings
Remember that for your business to grow and change, so must you. Don't be afraid to try new advertising techniques or industry standards. Grow with your community.
If you carry a weapon, make sure that you have all the necessary permits.
