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  1. #1
    kd2120's Avatar
    kd2120 Guest

    Default actual costs and income of starting a new business?

    Not sure how many people read and reply to the business part of the forum... A relative of mine wants to start up a business specializing in termite/pest inspections. How many inspections does a business generally do per month, how much do you really take home after expenses. What are the major expenses that a family fun business might have after education/training- insurance, business licensing, tools, transpiration (how much did it cost you to get started?)

    we're trying to get an idea of what true wages are after total costs of start up. Neither one of us has any experience and we're aware we aren't going to get rich like some of these schools claim...but owning your own business and making 20k is different than working for someone else and getting similar wages. I know its a lot of hard work and luck involved but is it likely we'd be living paycheck to paycheck or go under within the first few years?

    Are there long term health risks and illnesses that are common among people who work in this industry? any help and advice is appreciated. We were both thinking of doing our training and continuing to work in our unrelated fields and hoping to get experience through part time apprenticeship (more than likely unpaid..) and when we were experienced and ready to start the business after a few yrs trying to make a go at it.

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  2. #2
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    Rockwall Texas
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    Default Re: actual costs and income of starting a new business?

    I've been in the pest / termite business for over 20 yrs. and I can tell you honestly there is no way in hell that you could be in this business and just being doing inspections. If your not doing the actual treatments, your not going to get the inspection business.

    Also take in consideration that most home inspectors are doing the WDI inspections now which makes it even harder for someone who only wants to do pest / termite inspections.

    If I was in New York, where termites are not as severe as other places throughout the nation, I would consider another field. Just having the desire and knowledge (school and training) does not guarantee you any type of income to count on. You have to be willing to bust your arse in any field you choose to work in.

    Just my opinion.

    rick


  3. #3
    Ted Menelly's Avatar
    Ted Menelly Guest

    Default Re: actual costs and income of starting a new business?

    Quote Originally Posted by Rick Hurst View Post
    I've been in the pest / termite business for over 20 yrs. and I can tell you honestly there is no way in hell that you could be in this business and just being doing inspections. If your not doing the actual treatments, your not going to get the inspection business.

    Also take in consideration that most home inspectors are doing the WDI inspections now which makes it even harder for someone who only wants to do pest / termite inspections.

    If I was in New York, where termites are not as severe as other places throughout the nation, I would consider another field. Just having the desire and knowledge (school and training) does not guarantee you any type of income to count on. You have to be willing to bust your arse in any field you choose to work in.

    Just my opinion.

    rick
    To the highlight above

    Which they all have their termite tech license under another company and the inspectors are only inspecting. Most got phony hours to become a termite tech by paying someone else as well as that someone else doing the inspection for a period of time that they got paid for. I would say that almost all the inspectors never actually worked for the termite/pest control company for those hours. When I took my test there were hundreds in there taking the termite tech license. I won't mention that the inspectors just about give awy the termite inspection end just to get the home inspection. Oh, wait, I did just mention it.

    I do not do the termite inspection. I still pay to have it done. I believe it is the right thing for the client and to reduce liability.


  4. #4
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    Default Re: actual costs and income of starting a new business?

    I'm licensed to do the WDI and it is part of my home inspection fee. It is not something I call someone else out to do.

    My opinon is if your not licensed to do the WDI inspection, let the client call the termite company. Why do you want their liabililty on your back for referrring them. When they miss something one day and they will, you'll be dragged into the lawsuit right along with them "cause" you referred them and the client took your good judgement to let you call them out.

    Been down that hallway to the courtroom before to testify against another inspector and it wasn't good for him either.

    rick


  5. #5
    Ted Menelly's Avatar
    Ted Menelly Guest

    Default Re: actual costs and income of starting a new business?

    Quote Originally Posted by Rick Hurst View Post
    I'm licensed to do the WDI and it is part of my home inspection fee. It is not something I call someone else out to do.

    My opinon is if your not licensed to do the WDI inspection, let the client call the termite company. Why do you want their liabililty on your back for referrring them. When they miss something one day and they will, you'll be dragged into the lawsuit right along with them "cause" you referred them and the client took your good judgement to let you call them out.

    Been down that hallway to the courtroom before to testify against another inspector and it wasn't good for him either.

    rick
    No liability in referring a termite inspection company at all. It is all in the presentation. You present it like a fool and you will be defending a fool (yourself) in court. Everything in this business is in the presentation.

    I guess the liability thing goes the same as to why so many companies have home inspectors under them with termite Tech licenses. Talk about liability. Now I would not want to go down that liability road. No matter how you present that one the licensed applicator holds all the liability and they may just have to do a treatment here and there with that liability....if not a lot more than that. Big liability for such a small fee the home inspectors are charged.

    This whole liability thing for this and that is in general blown out of proportion. Again, it is all in the presentation. All I do is make the appointment for the termite inspection as I make the appointment for the home inspection and every client is fully aware that it is just a convenience for them and I do not make 2 cents on that referral or inspection.

    I actually lose inspections making that appointment as so many techs are giving away the termite inspection to get the home inspection.....talk about liability for not making a dime doing on the inspection and they are still under the applicators license...ouch.


  6. #6
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    Default Re: actual costs and income of starting a new business?

    Quote Originally Posted by Ted Menelly View Post
    Which they all have their termite tech license under another company and the inspectors are only inspecting.
    I disagree with that statement.

    If you had said "which most have", you probably would be correct in most markets.

    When I was doing home inspection *I* WAS a Certified Pest Control Operator and HAD my own pest control company, and ALL I did were my own inspections, AND there was nothing phony about the hours or years I had, or the continuing education I had to take.

    In my market, in South Florida, MOST home inspectors WERE Certified Pest Control Operators - SOME just carried cards from other pest control companies, but there was a reason for that ... IN FLORIDA you had to work for a Certified Pest Control Operator for 3 YEARS before you would be approved to even be allowed to take the Pest Control Operators test for licensing. I was a pest control operator for probably 15 years before I decided I no longer needed the license and did not renew it (cost too much to keep it active when I was no longer going to be using it).

    Jerry Peck, Construction / Litigation Consultant
    Construction Litigation Consultants, LLC ( www.ConstructionLitigationConsultants.com )
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  7. #7
    Ted Menelly's Avatar
    Ted Menelly Guest

    Default Re: actual costs and income of starting a new business?

    Quote Originally Posted by Jerry Peck View Post
    I disagree with that statement.

    If you had said "which most have", you probably would be correct in most markets.

    When I was doing home inspection *I* WAS a Certified Pest Control Operator and HAD my own pest control company, and ALL I did were my own inspections, AND there was nothing phony about the hours or years I had, or the continuing education I had to take.

    In my market, in South Florida, MOST home inspectors WERE Certified Pest Control Operators - SOME just carried cards from other pest control companies, but there was a reason for that ... IN FLORIDA you had to work for a Certified Pest Control Operator for 3 YEARS before you would be approved to even be allowed to take the Pest Control Operators test for licensing. I was a pest control operator for probably 15 years before I decided I no longer needed the license and did not renew it (cost too much to keep it active when I was no longer going to be using it).
    OK, OK

    In my area the big majority of termite inspectors that are home inspectors just have a tech license and they are under other companies that are certified applicators. Many either darn near give the termite inspection away or literally give the termite inspection away and say so in writing.

    Another disclaimer for you. This may vary from area to area in each state and from state to state

    Any better?


  8. #8
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    Default Re: actual costs and income of starting a new business?

    Quote Originally Posted by kd2120 View Post
    Not sure how many people read and reply to the business part of the forum... A relative of mine wants to start up a business specializing in termite/pest inspections. How many inspections does a business generally do per month, how much do you really take home after expenses. What are the major expenses that a family fun business might have after education/training- insurance, business licensing, tools, transpiration (how much did it cost you to get started?)

    we're trying to get an idea of what true wages are after total costs of start up. Neither one of us has any experience and we're aware we aren't going to get rich like some of these schools claim...but owning your own business and making 20k is different than working for someone else and getting similar wages. I know its a lot of hard work and luck involved but is it likely we'd be living paycheck to paycheck or go under within the first few years?

    Are there long term health risks and illnesses that are common among people who work in this industry? any help and advice is appreciated. We were both thinking of doing our training and continuing to work in our unrelated fields and hoping to get experience through part time apprenticeship (more than likely unpaid..) and when we were experienced and ready to start the business after a few yrs trying to make a go at it.
    On the average and depending on the amount of homes that are sold in the area you live and work in you should expect a 3 year time frame before you see a substantial profit from your business.

    I would say that if you can perform 300 inspections a year (with an average price of $300 per) you should expect to clear around $40,000 when it is all said and done. 300 inspections is a good number to shoot for. As for the price of the inspections, that is up to you and what the market will allow. My average inspection fee this year has been around $375, I have had an increase in larger homes and a decrease in the smaller starter homes.

    The profit on a HI business is all dependent on your overhead. Inspections are dependent on how well the homes are selling.

    Start up cost I would estimate about $12,000 and this is assuming that you have a vehicle to use. Training and basic equipment will cost about $8,000; Proper insurance about $3,000 per year. Professional fees and licenses about $1,000 to $1,500; Inspection reporting program and dedicated computer for the business around $2,000; Advertising (website, business cards, vehicle signs) around $1,500. Also you should budget another $2,000 a year for CE and advanced training. Then you will need money to live on untill you make money.

    Go to this site and subscribe to the service if you are really interested in what it will cost you to do business as a home inspector. It is the best tool I have seen www.costofbusiness.com

    Last edited by Scott Patterson; 01-14-2011 at 06:45 AM.
    Scott Patterson, ACI
    Spring Hill, TN
    www.traceinspections.com

  9. #9
    Alfred's Avatar
    Alfred Guest

    Default Re: actual costs and income of starting a new business?

    Starting a business was never a good experience for me .
    As business needs money and only money for more than a year , and profits will come after one year .


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