How to Start Up a Background Check Company

A background check company investigates and provides reports for companies and individuals, such as pre-employment backgrounds for businesses, pre-marital (or relationship) backgrounds for individuals and tenant backgrounds for landlords. To start a background check business, you need to learn how to research backgrounds and gain experience conducting background checks. Because background checks are background investigations, you must also fulfill the investigative licensing or certification requirements for your state.

Instructions

1. Learn about the profession. To become familiar with the different types of background checks, their legal issues and investigative resources, consider different avenues of study. For example, read a book by an expert in the field, such as "Sleuthing 101: Background Checks and the Law" by Barry Nadell, president of InfoLink Screening Services Inc., a national background screening company. Go to a National Association of Professional Background Screeners conference, where you can network, attend workshops, and learn about background check products.

2. Intern with a background check company. The best way to learn a profession is to practice it in the real world. Contact background check companies, or private investigators who offer background check services, and request an internship. To find a local member of the National Association of Professional Background Screeners, go to napbs.com, press the "Directories" link in the top blue bar, fill out the "Directory Search Form" and press the "Submit" button. To find a local private investigator, contact your state professional private investigator association and request an investigator who specializes in background checks.

3. Specialize in one or more background investigations. Think about which areas you'd like to specialize in for background checks. Maybe you want to cater to large businesses that require ongoing pre-employment background checks, or to landlords and property managers who need regular tenant background checks, or to the public who request different individual checks (relationship checks, criminal background checks, driver history records).

4. Review the licensing requirements for your state. Because background checks are background investigations, check the licensing requirements in your state for private investigations. Private Investigator Magazine lists each state and its licensing or certification requirements. As of February 2010, five states have no licensing requirements to practice investigations (Colorado, Idaho, Mississippi, South Dakota and Wyoming).

5. Set your prices. Check your competitors (their websites or print ads) and see what they charge for packaged and individual background checks. Especially when you're starting a business, it's smart to charge less than the competition. As you build your reputation and client base, increase your rates accordingly.

6. Build a website. After you've trained, interned and fulfilled the licensing requirements, it's time to bring in clients. Because many people search the Internet for services, it's business-savvy to launch a website. Although there are companies that offer free web development tools, consider hiring a professional web designer who can help you brand your business and market a professional, user-friendly website.

7. Market your business. There are free ways to market your background check business. Attract potential customers by offering background check tips and articles on a blog (WordPress and Blogger are two free blog services). Set up an e-newsletter. Offer to speak to local groups about background checks. Make cold calls to businesses that use background services (be sure to leave a business card).

References

• National Association of Professional Background Screeners
• Private Investigator Magazine: Private Investigator License Requirements by State