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The Reasons Why Home Inspection Businesses Fail
Nobody likes to see a business fail. Sadly, this is the reality many business owners will face one day.
From young start-ups that barely got off the ground to established brands that have been around for decades, nobody is invulnerable.
This same logic is applicable when it comes to the home inspection sector.
In fact, many home inspection start-ups shut up shop within their first few years of operation.
The reason is simple: business is hard.
Even though the challenge is steep, it’s also entirely possible to succeed in the home inspection sector.
Although to do so, it is important to view the downfalls of other businesses.
Below are the reasons why home inspection businesses fail.
The Failure to Adapt
Did you know there is specialist home inspection software available?
This software can store and share any home inspection report instantly, automate various time-consuming processes, produce business reports, and so much more.
It’s a fantastic bit of kit which can transform all areas of a home inspection company.
And yet, some outlets opt against using this software.
That’s right. The more traditionalist home inspection business owner will often stick with what they know.
That means the trusty pen and paper. However, it’s not all that trustworthy.
The pen and paper route is susceptible to human errors, which can cost a business a large sum of money down the road.
This method of tracking sales and managing the day-to-day functions of the company also takes up precious time, which in turn, takes up their precious money.
Due to this, it’s vital that anyone running a home inspection business adapts and uses applicable software.
You’re always looking for ways to save time, resources, or money, and this manages to cover all three.
A Lack of Insurance
If a company fails to get insurance, it deserves to go out of business, right?
This viewpoint might seem harsh, but it’s also incredibly lackadaisical for an owner to overlook such an important part of their home inspection business.
Yet, it still happens. Time and time again.
Most of the time, insurance is not actually overlooked. Rather it is disregarded due to a shoestring budget — and an unhealthy dose of self-confidence.
Concerning the latter, it’s important to remember that even the best inspector on the planet can do nothing wrong and still face a huge liability at some point.
However, there’s really no excuse to not have some form of insurance coverage.
Errors and Omissions (E&O) insurance is an affordable option these days, and the fees can be covered by even the most restricted budgets.
If someone ends up missing a structural roof problem or foundation issue, they will be glad the insurance is there to cover for their mistake.
Expecting Automatic Footfall
Someone could be the greatest inspector in the world, yet this counts for zilch if nobody knows who they are.
Although for some businesses, they believe it is their right to have customers. If they provide excellent service, they feel this is enough to generate footfall.
However, the business doesn’t work that way. It needs to be marketed effectively before people start turning up and requesting home inspections.
As for marketing itself, this is another area where businesses can fall short.
A quick Tweet here and a business card there might seem like appropriate promotion, but this will fail to generate results.
An effective promotional strategy needs to be focused, consistent, and based around quality content.
Home Inspection Businesses: The Failure to Temper Expectations
When a new owner of a home inspection business jumps headfirst into their role, they might feel it’s possible to take on the world.
They might have previous experiences in a technical role — such as being an electrician or carpenter — and this will only further stroke their ego.
With that said, it’s vital to temper expectations and set realistic goals.
Before someone can think of expanding beyond their local market, they must take on the competition in this area.
The competition also isn’t going to simply roll over and let the new guy take over, either.
Then there’s the task of building a sustainable company, becoming established, acquiring a healthy number of clients, and so on.
Although statistics and previous track records suggest otherwise, you shouldn’t let all the doom and gloom of this article stop you from creating a home inspection business.
It’s a role that can deliver job satisfaction and financial rewards in spades.
Just remember to keep a mental checklist of this article and you will avoid going down the same avenues that have seen other businesses fall by the wayside.