Are you about starting a background check company? If YES, here is a detailed sample background check business plan template & FREE feasibility report.

Starting a background check business means that you will be offering tenant and employment background screening to consumers, landlords, corporations and other organizations.

If you are interested in starting background check services business, then you should be ready to conduct thorough feasibility studies and market survey before committing your money and other resources to it. Aside from feasibility studies and market survey, one of the important documents that will aid the success of the business is a good and workable business plan.

Below is a sample background check services business plan template that can help you write your own with little or no stress.

A Sample Background Check Business Plan Template

  • Industry Overview

The Background Check Services industry comprises companies that offer tenant and employment background screening to consumers, landlords, corporations and other organizations. Background Check Services companies may specialize in reference check services, credit check services and criminal record check services.

A recent report released by IBISWorld shows that over the five years to 2019, the industry has performed well, rising at an annualized rate of 4.8 percent to $3.2 billion, with a growth of 3.4 percent expected in 2019 alone. Improvements in the labor market and a decline in rental vacancy rates over the past five years have boosted demand for background check services, as more people were offered jobs and the rental market became more competitive.

Vacancy rates are expected to decrease in 2019, which is expected to contribute to further growth in the industry. The Background Check Services industry experienced encouraging growth over the period. The Background Check Services Industry is indeed a large industry and pretty much active in most developed countries of the world.

Statistics has it that in the United States of America alone, there are about 2,119 registered and licensed background check services companies scattered all across the United States responsible for directly employing about 20,115 people and the industry rakes in a whooping sum of $3 billion annually.

The industry is projected to grow at a 4.8 percent annual growth within 2014 and 2019. It is important to state that no company can boast of having available market share in the industry.

One thing is certain, the background check services industry is an evolving one and new technology and approaches are being employed when it comes to delivering standard and safer background checking services. The industry can’t be said to be oversaturated because there are different niches in the background check industry.

The bottom line is that starting a background check services company requires professionalism and good grasp of how the industry works. Besides, you would need to get the required certifications and licenses and also meet the standard security expected for players in the industry in the United States.

Background Check Business Plan – Executive Summary

Shannon Parker® Background Check Services, Inc. is a first – class background check services company that will be headquartered in New York City – New York. We have been able to secure all the required security clearance and office facility to run a background check services company in the United States.

Shannon Parker® Background Check Services, Inc. is a client-focused and result driven background check services outfit that provides broad-based background check services at an affordable fee that won’t in any way put a hole in the pocket of our clients.

We will offer professional background check services such as tenant and employment background screenings to consumers, landlords, corporations and other organizations. We will also specialize in reference check services, credit check services and criminal record check services et al. We will ensure that we work hard to meet and surpass our clients’ expectations whenever they contract their background check services to our organization.

At Shannon Parker® Background Check Services, Inc., our client’s best interest would always come first, and everything we do is guided by our values and professional ethics. We will ensure that we hire professionals who are experienced in a wide variety of background check services.

Shannon Parker® Background Check Services, Inc. will at all times demonstrate her commitment to sustainability, both individually and as a firm, by actively participating in our communities and integrating sustainable business practices wherever possible. We will ensure that we hold ourselves accountable to the highest standards by meeting our client’s needs precisely and completely.

Our plan is to position Shannon Parker® Background Check Services, Inc. to become one of the leading brands in the industry, and also to be amongst the top 5 background check outfits in the United States of America within the first 10 years of operation.

This might look too tall a dream but we are optimistic that this will surely come to pass because we have done our research and feasibility studies and we are confident that New York City – New York is the right place to launch our business before spreading to other parts of the United States.

Shannon Parker® Background Check Services, Inc. is private – partnership business that is owned by Shannon Parker and his friend and business partner Allen Mark Peters. The organization will be managed by both of them. Mr. Shannon Parker and Allen Mark Peters graduated from both The University of New York (First Degree), and University of Harvard (MBA).

Shannon Parker is a Certified Security Project Manager (CSPM), Cisco Certified Security Professional (CCSP), Certified Security Compliance Specialist (CSCS), and Certified Information System Security Professional (CISSP), while Allen Mark Peters is a certified and licensed private investigator.

  • Our Services Offerings

Shannon Parker® Background Check Services, Inc. is going to offer varieties of services within the scope of the industry in the United States of America. Our intention of starting our background check services outfit is to make profits from the industry and we will do all that is permitted by the law in the US to achieve our aim and ambition.

Our business offerings are listed below;

  • Reference check services
  • Credit check services
  • Criminal record check services
  • Pre-employment services, including background checks
  • Other background check related services

Our Vision Statement

Our vision is to build a background check services company that will become the number one choice for clients in the whole of New York City – New York, throughout the United States and other countries of the world.

  • Our Mission Statement

Our mission is to provide professional and trusted background check services that assist individuals, businesses and non-profit organizations. We are to position the business to become the leading brand in the background check industry in the whole of New York, and also to be amongst the top 5 background check services outfits in the United States of America within the first 10 years of operation.

  • Our Business Structure

Shannon Parker® Background Check Services, Inc. is a standard background check services outfit that intends to start small in New York City, but looks to grow big in order to compete favorably with leading background check outfits both in the United States and on a global stage.

We are aware of the importance of building a solid business structure that can support the kind of world class business we want to own. This is why we are committed to only hiring the best hands within our area of operation.

At Shannon Parker® Background Check Services, Inc., we will ensure that we hire people that are qualified, hardworking, creative, customer centric and are ready to work to help us build a prosperous business that will benefit all the stake holders.

As a matter of fact, profit-sharing arrangement will be made available to all our senior management staff and it will be based on their performance for a period of five years or more as agreed by the board of trustees of the company. In view of the above, we have decided to hire qualified and competent hands to occupy the following positions;

  • Chief Executive Officer
  • Chief Investigator/Manager
  • Background Checking Executives
  • Admin and HR Manager
  • Marketing and Sales Executive
  • Accountant
  • Customer Services Executive

Roles and Responsibilities

Chief Executive Office:

  • Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results
  • Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
  • Responsible for fixing prices and signing business deals
  • Responsible for providing direction for the business
  • Responsible for signing checks and documents on behalf of the company
  • Evaluates the success of the organization

Manager

  • Manages the overall activities of detective staff members and equipment
  • Achieves maximum profitability and over-all success by controlling costs and quality of service.
  • Completes weekly schedules. Schedule employees as necessary to ensure adequate and consistent levels of investigative service.
  • Supervises weekly schedules. Schedule staff as necessary to ensure adequate and consistent levels of service
  • Responsible for security control policies and completion of necessary forms.
  • Co-ordinates the general execution of background check services as requested by clients.
  • Summit background check reports on a regular basis to the management of the organization and give professional advice as at when due.

Background Check Executives

  • Responsible for carrying out standard and professional background check services such as tenant and employment background screenings.
  • Perform undercover operations such as evaluating the performance and honesty of employees by posing as customers or employees.
  • Question persons to obtain information about individuals’ character or financial status.
  • Search computer databases, credit reports, public records, tax and legal filings, and other resources in order to locate persons or to compile information for investigations.
  • Expose fraudulent insurance claims or stolen funds.
  • Confer with establishment officials, security departments, police, or postal officials to identify problems, provide information, and receive instructions.
  • Obtain and analyze information on suspects, crimes, and disturbances in order to solve cases, to identify criminal activity, and to gather information for court cases.

Admin and HR Manager

  • Responsible for overseeing the smooth running of HR and administrative tasks for the organization
  • Regularly hold meetings with key stakeholders to review the effectiveness of HR Policies, Procedures and Processes
  • Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
  • Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
  • Defines job positions for recruitment and managing interviewing process
  • Carries out induction of new team members
  • Responsible for training, evaluation and assessment of employees
  • Responsible for arranging travel, meetings and appointments
  • Oversees the smooth running of the daily office activities.

Marketing and Sales Executive

  • Identifies, prioritizes, and reaches out to new partners, and business opportunities et al
  • Identifies development opportunities; follows up on development leads and contacts
  • Writes winning proposal documents, negotiate fees and rates in line with company policy
  • Responsible for handling business research, market surveys and feasibility studies for clients
  • Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
  • Documents all customer contact and information
  • Represents the company in strategic meetings
  • Helps to increase sales and growth for the company

Accountant

  • Responsible for preparing financial reports, budgets, and financial statements for the organization
  • Provides managements with financial analyses, development budgets, and accounting reports
  • Responsible for financial forecasting and risks analysis.
  • Performs cash management, general ledger accounting, and financial reporting for one or more properties.
  • Responsible for developing and managing financial systems and policies
  • Responsible for administering payrolls
  • Ensures compliance with taxation legislation
  • Handles all financial transactions for the company
  • Serves as internal auditor for the company

Client Service Executive

  • Welcomes guests and clients by greeting them in person or on the telephone; answering or directing inquiries.
  • Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
  • Through interaction with clients on the phone, uses every opportunity to build client’s interest in the company’s products and services
  • Manages administrative duties assigned by the manager in an effective and timely manner
  • Consistently stays abreast of any new information on the company’s products, promotional campaigns etc. to ensure accurate and helpful information is supplied to clients when they make enquiries

Background Check Business Plan – SWOT Analysis

Due to our drive for excellence when it comes to running a standard background check business, we were able to engage some of the finest business consultants in New York City to look through our business concept and together we were able to examine the prospects of the business and to access ourselves to be sure we have what it takes to run a standard background check services outfit.

In view of that, we were able to take stock of our strengths, our weakness, our opportunities and also the threats that we are likely going to be exposed to in New York City – New York. Here is a preview of what we got from the critically conducted SWOT Analysis Shannon Parker® Background Check Services, Inc.;

  • Strength:

Aside from the fact that all our background check services company is of world – class standard and the business is well positioned to meet 21st century demand, we have a team that can give our clients value for their money; a team that are trained and equipped to pay attention to details as regard background checking. We are well positioned and we know we will attract loads of clients from the first day we open our doors for business.

  • Weakness:

As a new background check outfit, it might take some time for our organization to break into the market and gain acceptance in the already saturated background check services industry; that is perhaps our major weakness.

  • Opportunities:

As the number of businesses in the United States increases, demand for industry services rises because the pool of potential corporate clients will grow. Corporate clients are the largest market for background check services and are vital to the industry’s success.

Businesses use industry services to protect trademarks, collect information on competitors and perform pre-employment screenings. In 2019, the number of businesses is expected to increase, representing a potential opportunity for the industry. Also, the national unemployment rate is expected to decline in 2019, representing a potential opportunity for the industry.

  • Threat:

Consumer spending measures the total amount spent by Americans on services and new goods and net purchases of used goods, both domestically and abroad. An increasing consumer spending metric indicates a healthy economy, which indicates a strong job market.

Furthermore, higher consumer spending indicates more spending on on-demand services, such as Uber Technologies Inc. or TaskRabbit, which generally require new employees to pass background checks. Consumer spending is expected to rise in 2019, albeit at a slower rate, posing a potential threat to the industry.

Background Check Business Plan – MARKET ANALYSIS

  • Market Trends

Businesses use background checks on job candidates to ensure that they do not have a criminal background. Increased hiring results in an increase in the number of companies requiring background checks. The background check services industry is one of the industries that are highly regulated so as to prevent costly security breaches that endanger the security of a country.

So, if you are looking towards starting a background check company, then you should acquire international detective certifications; it will give you an edge amongst your competitors. The truth is that, the more relevant detective certifications that you and your team have, the easier it is for you to convince people to patronize your services.

Although if you are able to build a successful background check services company brand, you can pitch your business in any part of the world and still make success out of it especially if you intend working for international clients. But if you are just starting out; especially if you are a newbie in the industry, it is important that you locate your business in an area with healthy business activities.

As a matter of fact, social media has now become one of the most important tools background check services leverage to disseminate information about their concerns, solicit feedback, and create year-round engagement with their target audience. Furthermore, new software apps and emerging technology have made it easier for background check outfits to gather data and information that will help them plan and project for the future.

  • Our Target Market

Although Shannon Parker® Background Check Services, Inc. will initially serve small to medium sized business, but that does not in any way stop us from competing with leading background check services companies in the United States. Below is a list of the people and organizations that we have specifically design our services for;

  • Blue Chips Companies
  • Insurance companies
  • Courts
  • Corporate Organizations
  • Religious Organizations
  • Political Parties/Politicians
  • Landlords
  • The Government (Public Sector)
  • Schools (High Schools, Colleges and Universities)
  • Sport Organizations
  • Estate / Facility Managers
  • Entrepreneurs and Startups

Our Competitive Advantage

Surviving in the business world as a background check company requires more than your expertise but also how to network with key people that matters.

No doubt there are loads of investors that have a stake in the industry, but one thing is certain, there is room big enough to accommodate all these companies. What smaller background check services companies need to do to survive in the industry is to concentrate on providing services to startups and landlords et al before bidding for big background check contracts from corporations and government agencies.

Shannon Parker® Background Check Services, Inc. might be a new entrant into the industry in the United States of America, but the management staff and owners of the business are considered gurus. They are highly qualified background check executives in the United States.

Lastly, our employees will be well taken care of, and their welfare package will be amongst the best within our category in the industry meaning that they will be more than willing to build the business with us and help deliver our set goals and objectives.

Background Check Business Plan – SALES AND MARKETING STRATEGY

We are mindful of the fact that there are stiff competitions amongst background check companies in the United States of America; hence we have been able to hire some of the best business developers to handle our sales and marketing concerns.

Our sales and marketing team will be recruited based on their vast experience in the industry and they will be trained on a regular basis so as to be well equipped to meet their targets and the overall goal of the organization. We will also ensure that our excellent job deliveries speak for us in the market place.

Our goal is to grow our company to become one of the top 20 background check services companies in the United States of America which is why we have mapped out strategies that will help us take advantage of the available market and grow to become a major force to reckon with not only in the New York City – New York but also in other cities in the United States of America.

Shannon Parker® Background Check Services, Inc. is set to make use of the following marketing and sales strategies to attract clients;

  • Introduce our business by sending introductory letters alongside our brochure to corporate organizations, insurance companies, facility managers, religious organizations, schools, landlords and key stake holders in New York City and other cities in – New York
  • Promptness in bidding for background check services contracts from the government and other cooperate organizations
  • Advertise our business in relevant magazines, newspapers, TV and radio stations
  • List our business on yellow pages ads (local directories)
  • Attend relevant international and local expos, seminars, and business fairs et al
  • Create different packages for different category of clients in order to work with their budgets
  • Leverage on the internet to promote our business
  • Engage direct marketing approach
  • Encourage word of mouth marketing from loyal and satisfied clients

Sources of Income

Shannon Parker® Background Check Services, Inc. is established with the aim of maximizing profits in the industry and we are going to ensure that we do all it takes to attract clients on a regular basis. Shannon Parker® Background Check Services, Inc. will generate income by offering the following background check services to individuals and for corporate organizations;

  • Reference check services
  • Credit check services
  • Criminal record check services
  • Pre-employment services, including background checks
  • Other background check related services

Sales Forecast

One thing is certain, there would always be clients who can’t afford to leave their background checking concerns to their own Human Resources department. As a standard background check outfit, we are ready to take advantage of any opportunity that comes our way.

We are well positioned to take on the available market in New York City – New York and we are quite optimistic that we will meet our set target of generating enough income / profits from the first six months of operation and grow the business and our clientele base beyond New York City.

We have been able to examine the background check services market, we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. The sales projections are based on information gathered on the field and some assumptions that are peculiar to startups in New York City – New York.

Below are the sales projections for Shannon Parker® Background Check Services, Inc., it is based on the location of our business and the wide range of background check services that we will be offering;

  • First Fiscal Year (FY1): $350,000
  • Second Fiscal Year (FY2): $750,000
  • Third Fiscal Year (FY3): $1.25 Million

N.B: This projection was done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown within the period stated above. There won’t be any major competitor offering same services as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.

  • Our Pricing Strategy

Just like in services and consulting business, hourly billing for background check services is also a long – time tradition in the industry. However, for some types of contracts or clients, flat fees make more sense because they allow clients to better predict the overall service charges. As a result of this, Shannon Parker will charge clients both flat fee and hourly billing as long as it favors both parties.

At Shannon Parker® Background Check Services, Inc. we will keep our fees below the average market rate for all of our clients by keeping our overhead low and by collecting payment in advance. In addition, we will also offer special discounted rates to startups, nonprofits, cooperatives, and small social enterprises.

  • Payment Options

The payment policy adopted by Shannon Parker® Background Check Services, Inc. is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the United States of America.

Here are the payment options that Shannon Parker® Background Check Services, Inc. will make available to her clients;

  • Payment via bank transfer
  • Payment with cash
  • Payment via POS
  • Payment via online bank transfer
  • Payment via check

In view of the above, we have chosen banking platforms that will enable our client make payment for services rendered without any stress on their part. Our bank account numbers will be made available on our website and promotional materials to clients who may want to deposit cash or make online transfer for our services.

Background Check Business Plan – Publicity and Advertising Strategy

We have been able to work with our brand and publicity consultants to help us map out publicity and advertising strategies that will help us walk our way into the hearts of our target market. We are set to take the background check industry by storm which is why we have made provisions for effective publicity and advertisement of our outfit.

Below are the platforms we intend to leverage on to promote and advertise Shannon Parker® Background Check Services, Inc.;

  • Place adverts on both print (community based newspapers and magazines) and electronic media platforms
  • Sponsor relevant community based events/programs
  • Leverage on the internet and social media platforms like; Instagram, Facebook, twitter, YouTube, Google + et al to promote our brand
  • Install our Billboards in strategic locations all around New York City
  • Distribute our fliers and handbills in target areas
  • Ensure that all our workers wear our branded shirts and all our vehicles are well branded with our company’s logo et al.

Background Check Business Plan – Financial Projections and Costing

We have been able to pool cash that will be enough for us to successfully launch a standard background check services company in New York City. These are the key areas where we will spend our startup capital on;

  • The total fee for incorporating the business in the United States of America- $750.
  • The budget for basic insurance policy covers, permits and business license – $2,500
  • The amount needed to acquire a suitable office facility (Re – Construction of the facility inclusive) – $150,000.
  • The Cost for equipping the office (computers, customized software applications, printers, fax machines, furniture, telephones, filing cabins, security and safety gadgets and electronics et al) – $ 5,000
  • The Cost of Launching an official Website – $600
  • The cost for the purchase of 21st century security cum detective gadgets, software and cameras et al – $20,000
  • Budget for paying employees for 2 months plus utility bills – $100,000
  • Additional Expenditure (Business cards, Signage, Adverts and Promotions et al) – $2,500
  • Miscellaneous: $5,000

Going by the report from the market research and feasibility studies conducted, we will need about three hundred and fifty thousand (350,000) U.S. dollars to successfully setup a medium scale but standard background check services company in the United States of America.

Generating Funding/Startup Capital for Shannon Parker® Background Check Services, Inc.

Shannon Parker® Background Check Services, Inc. is a private – partnership business that will be owned by Shannon Parker and his friend and business partner Allen Mark Peters. They are the financier of the firm, but may likely welcome partners later which is why they decided to restrict the sourcing of the startup capital for the business to just three major sources.

These are the areas we intend generating our startup capital;

  • Generate part of the startup capital from personal savings
  • Source for soft loans from family members and friends
  • Apply for loan from the bank

N.B: We have been able to generate about $150,000 (Personal savings $100,000 and soft loan from family members $50,000) and we are at the final stages of obtaining a loan facility of $300,000 from our bank. All the papers and documents have been duly signed and submitted, the loan has been approved and any moment from now our account will be credited.

BACKGROUND CHECK BUSINESS GROWTH: Sustainability and Expansion Strategy

The future of a business lies in the number of loyal customers that they have, the capacity and competence of their employees, their investment strategy and the business structure. If all of these factors are missing from a business, then it won’t be too long before the business closes shop.

One of our major goals of starting Shannon Parker® Background Check Services, Inc. is to build a business that will survive off its own cash flow without injecting finance from external sources once the business is officially running. We know that one of the ways of gaining approval and winning customers over is to offer our background check services a little bit lower than what is obtainable in the market and we are prepared to survive on lower profit margin for a while.

Shannon Parker® Background Check Services, Inc. will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and retraining of our workforce is at the top burner.

We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.

Check List/Milestone

  • Business Name Availability Check: Completed
  • Business Incorporation: Completed
  • Opening of Corporate Bank Accounts: Completed
  • Opening Online Payment Platforms: Completed
  • Application and Obtaining Tax Payer’s ID: In Progress
  • Application for business license and permit: Completed
  • Purchase of Insurance for the Business: Completed
  • Securing a standard office facility and reconstruction inclusive: In Progress
  • Conducting Feasibility Studies: Completed
  • Generating part of the startup capital from the founder: Completed
  • Applications for Loan from our Banks: In Progress
  • Writing of Business Plan: Completed
  • Drafting of Employee’s Handbook: Completed
  • Drafting of Contract Documents: In Progress
  • Design of The Company’s Logo: Completed
  • Printing of Promotional Materials: Completed
  • Recruitment of employees: In Progress
  • Purchase of the needed security cum detective gadgets, background checking software application, furniture, office equipment, electronic appliances and facility facelift: In progress
  • Creating Official Website for the Company: In Progress
  • Creating Awareness for the business (Business PR): In Progress
  • Health and Safety and Fire Safety Arrangement: In Progress
  • Establishing business relationship with vendors and key players in the industry: In Progress
Solomon. O'Chucks