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How to Start an Escort Business Legally

Escort Business

In starting an escort business legally, one needs to live in a tourist area and know the area quite well too. This type of enterprise can usually be started from home, and has the potential of giving one a great source of yearly revenue.

This can happen only if you promote your services aggressively, build contacts with companies and individuals that can help you in succeeding, and also provide clients with a great time during their vacation. You have to know who to build alliances with, especially those that will guarantee referrals for you, such as hotels and hotel employees, limousine companies, travel agents, and business event planners.

Even though most people refer to escorts in this industry as orphans of the travel industry, mainly due to their hidden status, the reason is mostly due to the fact that most are freelancers, while others work for agencies and organizations on a part time basis.

The job of an escort is to inform. There are no fixed rules to being an escort. You can be with a group for several hours or days.

Most escorts or tour guides assume the dual role of guide and tour manager. Apart from showing your clients the usual hunts, as an escort, you can make your work exciting by showing off unusual sights in the community you are taking your clients through.

This will achieve the purpose of providing clients with an unforgettable experience combined with incredible service, and is sure to guarantee you referrals and repeat businesses. You can also market your services to corporations that want to give their executives, out-of-town customers, and employees something special to remember.

This will boost the bottom line of your company while also ensuring that the corporation involved gets something – like enhanced productivity – out of it as well. Another thing is that you have to decide on which of the sectors of the industry you want to focus on as an escort by taking the geographical location into account.

The location depends on the area where you want to start the business in. Some areas will require that you add other services to make the business more viable and sustaining for the healthy growth of your company. Also, the local tourists’ attraction in your area is an indication on whether your business will be successful or not.

Finally, size up your competition by researching thoroughly on the business before venturing into it. You may decide after a thorough investigation to go into an area that is not so congested or you might decide to take your chances in a congested area.

The business also requires a business plan, that will help you in procuring the necessary funds that will be required for you to run the business, and then you are good to start. Also ensure that you obtain the necessary business licenses.

Steps to Starting an Escort Business Legally

1. Understand the Industry

This industry caters for those with a passion to travel and is not a business that will make you rich; rather it offers one the exciting benefits which include learning new languages, receiving advance training, and learning some skills suitable for adventures.

Interesting Statistics About the Industry

Escorts in this industry can earn between $50 and $150 per day with a lot of factors taken into consideration such as experience, training, locations, type of tour and others. Some experienced tour guides earn between $30,000 and $60,000 yearly, and so this means as a business you would probably make more, especially if you aren’t doing the work all by yourself.

Being an escort is one of the world’s oldest professions, with there being early historical accounts referring to pathfinders and cicerones, who were regarded as antecedents of the contemporary guide. Most people as far back as the 5th century depended on guides.

When discussing the trends in tourism, it is always interesting to start with some facts and figures on the situation of European tourism. The general outlook for this dynamic sector is, in relation to other traditional European economic sectors, positive and quite optimistic for the coming years.

Tourism is generally and globally acknowledged as being one of the (very) few economic sectors that has more than significant growth prospects and is characterized as a catalyst for peace and prosperity.

Despite the increasing competition in overall world tourism, Europe is still the number one destination. It has the highest density and diversity of tourist attractions. This is probably due to the fact that Europe as a continent has many interesting sites, places, and history that is usually found to be interesting and informative by travelers.

It is only recently that in the united states that tourism has been recognized as an economic asset, the significance of tourist guides and escorts are now felt very much. Guides and escorts and professionals known with clear understanding of places of interest, having knowledge over the language, routes, facilities available, provide physical security to tourists particularly from Foreign countries

According to the United States Department of Labor, the average hourly wage in the United States is $13 per hour, while the average annual salary is $23,000. Even though the pay is low, the incentives are limitless, and they include paid meals, paid transport and accommodation.

You might get to work long hours though. If you own the business, you definitely would need to pay for these perks out of the company’s purse for yourself or for the employees.

As at 2012, the industry had at least 32,000 employees. With employment growth tagged at 14.4%, the least educational requirement is a high school diploma. The salary of escorts depended on their locality and experienced, as some earned more than others.

2. Conduct Market Research and Feasibility Studies

  • Demographics and Psychographics

The demographic and psychographics composition of those that need the services of an escort includes; corporate organizations, schools, foreigners, religious organizations, and such other kinds of groups are those that require the services of an escort/tour guide.

Here are those who need the escort business services;

  • Busy corporate executives
  • young adults of the working class
  • working parents who own children
  • Foreigners
  • young adventure lovers
  • teenagers

3. Decide Which Niche to Concentrate On

The niches within the escort business is quite clear, and even though all escort services borders down to sharing knowledge and providing information, the kind of information and the way it will be shared will differ according to the niche the escort’s services are in.

Some areas and different niches in the escort business are as follows;

  • Recreation
  • cultural,
  • nature,
  • pleasure
  • sports
  • Religious
  • medical or health
  • Adventure

The thing about all these areas of specialization mentioned is that entrepreneurs that are just starting out their escort businesses can choose from one of these areas and specialize in it, but entrepreneurs on a large scale can decide to combine one or more of these areas since they will be more adept at handling more areas due to the number of employees they would have working under them.

The Level of Competition in the Industry

Starting an escort business might be easy or difficult depending on several factors, but the good thing is that this is a service oriented industry, and requires skills and the sales of any product. Also, the escort business isn’t the kind that is technically oriented, or that requires any technical equipment.

It might require the handling of several equipment due to the niches or areas of specialization. If you are serious as a business person, you can start up the business and start making profit in a year. The level of competition in this industry is a bit stiff, but not like some other kinds of businesses.

Most clients seek the services of those that would give them a wonderful experience, and will clearly patronize an escort that is knowledgeable, fun, and has fair rates. So, one has to be careful not to allow your competitors any edge in this field as every customer is important.

4. Know Your Major Competitors in the Industry

The escort business is like any business where top brands overtime become more preferred by customers, this is probably due to the fact that they have had a better success rate than others in the same industry.

Any serious entrepreneur should do well to understudy well known brands, as this could help in avoiding unnecessary pitfalls, while helping his or her business grow and thrive. In the United States, some of the best well known brands are:

  • Artisans of Leisure
  • Accor
  • Aban Offshore
  • AirTran Holdings
  • Crown Resorts
  • Grupo Tampico
  • JetBlue
Economic Analysis

Before venturing into this business, one would have to ensure that they carry out a thorough research or feasibility study, which will help them decide if it is something worth throwing their money at.

The escort business is one that provides service to people, and there are many important factors that you would have to consider when starting up the business, chief among which is location. A business location is important as it might lead to the growth of the business or not.

You can as an escort company, locate your business far from attraction sites, as far as you have an escort close to the site when clients want to visit such places, but this does not mean that you can locate your business just about anywhere.

You cannot for instance, locate your business near an old peoples’ home but you can locate your business in residential or corporate areas, as this is a large target for your market.

This is why as an entrepreneur you must note that, while your location positions your business for growth, the caliber of clients or customers also help to sustain that growth as well. Locating your business in an area where you have your target market is so that your company’s bottom line might be healthy with a possible room for expansion according to the vision and objectives you have for your company.

5. Decide Whether to Buy a Franchise or Start from Scratch

Yes, you can start this business from scratch, as this is highly a fragmented industry, as no particular industry dominates the market share. The entrepreneur that is interested in this business needs to be one who has a passion for places, events and things, and wouldn’t mind sharing the knowledge of these stuffs and their history to interested people continuously.

Buying a franchise might be helpful to entrepreneurs who do not want the hassles of going out to get customers, or carrying out an intensive advertising campaign to get new clients, especially as it is hard to get customers except you are a big company.

Most franchises already have certain mechanics in place, and so getting a franchise might just be what you need without having to worry too much about paperwork. Buying a franchise would ensure you learn the ropes faster than you would have done on your own.

Whatever one decides to go into, should be one that would favor the entrepreneur in the long run. However, one should note that there aren’t any known franchises in this industry.

6. Know the Possible Threats and Challenges You Will Face

Every business person faces threats and challenges, either within the business or outside. The challenges faced by escorts are varied, chief of which is incidents that might occur while on a tour.

Other challenges are in finding customers, since those who go on tours are those that have extra disposable income to spare. Lastly, your competition might not be so favorable towards your business, and might seek to take your business down, by offering stiff competition either through a better service or cheaper prices.

As a business person, there is hardly anything you can do about these challenges or threats, you can only deal with it as they come, and hope they make you better as an individual and as a business person.

7. Choose the Most Suitable Legal Entity (LLC, C Corp, S Corp)

Starting your business means you will have to select an organizational type from all of the different business structures. The choice will then determine how your business will be set up. Most times, new businesses usually choose between a partnership, sole proprietorship, and Limited Liability Company (LLCs) or a corporation.

Choosing is always difficult, and you should always ensure that you research on each business structure, knowing the pros and cons before deciding on what will be used by your business eventually.

The choice not only depends on the type of business but also on how you would want the business to run, how many owners the business will have, and the financial situation of the business. There is no perfect fit for any business but there are criteria to check what eventually will work for your business.

If you are worried about getting the right business structure or about something going wrong, you shouldn’t. Most businesses start out as sole proprietorships or even partnerships and then grow and convert to LLCs and corporations. The good thing is your business’ legal entity can change as your plan changes.

8. Choose a Catchy Business Name

If you are looking to start the escort business, and you do not have an idea about the type of name to use, you can take a cue from the names that is supplied below;

  • Guided Escort Inc.
  • Adventures Only
  • Educational Tours
  • Escorts and You
  • Professional Escorts

9. Discuss with an Agent to Know the Best Insurance Policies for You

All businesses need the protective cover that an insurance policy gives. If you are confused about a policy, it’s best you talk to your insurance broker so as to be guided on the best policy that will suit your escort business. Some of the basic insurance policies that you should consider if you are looking to start your business in the United States of America include:

10. Protect your Intellectual Property With Trademark, Copyrights, Patents

Anyone that is considering starting this escort business will surely not need to apply for intellectual property protection. However, intellectual property protection might be gotten for the logo of the company or the slogan, it is not considered an utmost priority and most people in this field do not bother with getting one.

11. Get the Necessary Professional Certification

If you decide to start an escort business in the United States, you would not be required to own a professional certificate, however some states and municipalities might require that you own a certificate of sorts. Also, a first aid certification might be required, in case the escort encounters situations that would require the use of first aid before an expert medical professional comes along.

It is essential for an entrepreneur going into this field in the United States of America to check what will be required of him or her in the state or municipality where they want to operate their business from.

12. Get the Necessary Legal Documents You Need to Operate

Some of the basic legal documents that you would need to successfully run your escort business in the United States of America are as follows:

  • Business License
  • Certificate of Incorporation
  • Insurance Policy
  • Business Plan
  • Employment Agreement
  • Operating Agreement

13. Write a Business Plan

Every business requires a business plan, it doesn’t matter if love being an escort for fun. As an entrepreneur going into the business and not intending to escort just for fun, you would need a business plan, as the business has to be undertaken as you would any other business.

Any serious entrepreneur with aim of starting a business and intends to make profit, compete and grow, knows the importance of a detailed business plan. A business plan lets you know if you will be wasting your time in the business you intend going into.

The business plan might not be comprehensive, but it should act as a guide for you and give you a clear vision of what you intend achieving with the business.

A business plan is a blueprint that influences the decisions and actions a business takes. It contains strategies that can effectively help in administering and managing your escort business, strategies on how to generate capital, attract clients and expand the business; these key components are vital to your business plan.

The whole idea of writing a business plan is not just to draft strategies that will help you effectively administer and manage your escort business, it is also so that a financial strategy can be created that will show how you intend getting your revenue. The strategy gives you an insight of what will be needed in the first year, and when it will be needed.

The key components that should be included in your business plan are as follows;

To begin with, every business plan needs an executive summary, this is the section where you are expected to clearly state the aim of your escort business, your company’s corporate culture, your sales and marketing strategies, your marketing goals, your target market and perhaps what stands you out from your competitors.

You are also expected to state your company’s vision statement, mission statement and the areas where you want to cover.

The other section is that of your plan, which will detail why your escort business will be needed by customers. You would need to analyze the market size and shares, saturation of the market and room for growth. Other things that would need to be included are the number of escorts that would be employed, and if they will be regular or contract staff.

You may need to engage the services of a business consultant to help you write a business plan for your escort business, especially if you are not cut out for writing a business plan. However, you can also with the aid of a business plan template online come up with a good business plan for your escort business as there are good templates that can be downloaded online, and used.

14. Prepare a Detailed Cost Analysis

From research, it can be deduced that starting an escort business isn’t something that is difficult. The start-up cost depends on the requirements of the state one would be operating in. and so it would be best if you know what the requirements of your state would be before venturing into the escort business.

Most new entrepreneurs might be wary of going into this industry due to the fact that this might not be a money making industry, but in this business you can start off with any amount as you are comfortable with, and still make as much as you should.

You can start off the business by escorting your church members or club members to historical sites and places, and display your skills, using them as a learning curve, and then save what you make before registering your business, after you are sure that you are making the right decision.

This is a business that can be started from home, thereby saving you thousands in rent money. The items listed below are the basics that you would need if you want to start your own escort business in the United States, although costs might vary according to states:

  • The total fee for incorporation would cost $200
  • Liability insurance and business license would cost $500
  • Business cards and other miscellaneous expenses would cost $100
  • For those who would get an office probably due to location, an office facility – for at least 6 months – would cost $1,000
  • Launching of website would cost $100
  • Equipping the office with computer, phone, file cabinet would cost $300
  • Other operating expenses would cost $100

Going by the report from detailed research and feasibility studies, you will need an average of $2,300 to start a small scale escort business in the United States of America.

If you want to start a medium scale escort business in the United States, you would need nothing less than $5,000. And if your intention is to start a large scale escort business in the United States of America, then you should look towards raising well over $10,000 as your start – up capital.

15. Raise the Needed Startup Capital

A service business isn’t like a business where tangible goods are sold for money, so obtaining financing might not be so easy. Approaching an investor for a loan will require a business plan, where your financial projections or statement must be in order.

Without a business plan, no investor would take you seriously, and might feel you are wasting their time. A business plan not only shows how serious you are in having carrying out a feasibility report, it also tells the investor how far the business might likely go.

Applying for a loan is a stressful business, and any serious entrepreneur that knows that his or her business is worth it, will have to go the extra mile in looking for places to source for funds without committing too much in terms of interests and paybacks.

Every entrepreneur has to realize that finance cannot be avoided, and so must be prepared for the task at hand. When it comes to raising finance, every business person is faced with different available options which are:

  • Money can be raised from personal savings, as well as sales of valuable property or even stock.
  • Money can be raised from friends and families
  • Apply for a bank loan
  • The business ideas can be pitched to investors

16. Choose a Suitable Location for your Business

Before one decides on the location for their business, different factors have to be put into consideration. If you plan on opening an office for your escort business, it has to be in a corporate area, close to a school or near a government agency.

If you locate your business in an area, where people live below the poverty line, you would not only get people that may not patronize your business but also those that might pay lower than you charge, as they may not have the disposable income that would be needed to acquire your services.

If your home is far from where business will likely be favorable for you, it is advisable you get an office facility, even if it is a small one, but otherwise run the business from home, so as to keep your operating costs at a minimum.

Another reason why you might have to operate an office is if you are running a medium or large scale escort business, and are likely to employ people that would work with you.

17. Hire Employees for your Technical and Manpower Needs

There is little technicality required for the escort business except for specific niches like sports or adventures. Even though the escort requires no equipment to work, he or she needs a degree of technicality in case of any incident that might occur during the tour.

For those intending to operate from an office facility on whatever scale, here are some of the equipment that would be needed:

  • Computer
  • Phones
  • Emergency first aid kit
  • Files
  • Contract documents

Due to the nature of this business, only one escort is needed for any tour except those that handle little children and might need more than one escort. Also, as an entrepreneur you can work alone and take in as much you can handle but if the business is one that is on a medium or large scale, you would definitely require more employees to help with clients.

Most escorts work from home, or in locations approved for the tour and so anyone starting out would not need an office facility and can work from home. A full medium or large scale office could employ a receptionist/cashier, escorts, and manager.

This could be between 4 to 6 people and above. The office would need minimal and functional equipment such as computers, phones.

The Service Delivery Process of the Business

There is no production process involved in the escort business as this is a service delivery business. The process involved usually range from learning and knowing about different subjects, languages, or being versed in other skills, and any other requirements that will be needed while performing your duties as an escort.

The other process ranges from being fit for adventurous tours to sharing your knowledge with the kids, foreigners, and others that might require it.

18. Write a Marketing Plan Packed with ideas & Strategies

Every business requires income, and the only way to generate income for one’s business is to publicize and promote one’s business so that customers can know about the business and patronize it. Every entrepreneur starting this business should know that they would have to vigorously market their escort business, and should be prepared for it. However, marketing ideas and strategies shouldn’t be one that will break the bank.

An entrepreneur with a good business sense will get started on the path of marketing success. However, it takes more than having a good business sense to achieve market visibility for your escort business; it will require a certain mix of marketing ideas and strategies.

Companies that have grown and existed over the years are ones that have constantly employed a mix of strategies, and chosen that which favors their company more. Below are some marketing tips that you can use for your escort business:

  • Introduce your business by sending brochures and introductory letters to schools, corporate companies, as well as other related institutions.
  • Advertise your business in travel magazines and websites
  • Ensure that your business is listed in local and online directories.
  • Use the internet to promote your business
  • Make use of referrals
  • Launch your website and promote your business there
  • Make use of the social media to market your services

19. Work Out a Reasonable Pricing for your Services & Products

Factors that will help you get the right product pricing for your escort business is one that will ensure that you set the right price that is affordable to you and your client and cut that on operational costs that will drain your pocket and add a dent to that of your clients.

This can be achieved if you decide to operate from home instead of getting an office facility that would increase your operational cost that would have to be passed on to the customers.

20. Develop Iron-clad Competitive Strategies to Help You Win

Even though the escort business might look fairly easy enough, it isn’t that easy especially as you would have to strive to keep your business afloat and stay above competition. Even though most clients would love a business that offers for them to pay something cheap for a great experience, many would not mind coming to you if you offer unique services that your competitors aren’t offering.

Which means you must package your business in a way that regardless of the rates, you would have an advantage over your neighbors.

You could also, as part of your competitive strategy, package your services to suit each class of clients and their pockets, your tour packages should be designed in such a way that regardless of the class your clients are in, they should be able to afford your package. Another competitive strategy that can be deployed is in offering several related escort services.

21. Brainstorm Possible Ways to Retain Clients & Customers

Escorts who intend to increase customer retention for their business so as to get repeat business, as this is the best kind for any escort business, must ensure that they set up and maintain the best profiles for the business both offline and online. Just like in any other business, it is easier and more cost efficient to maintain as well as retain a steady customer base rather than hunt for new customers.

As part of your efforts at retaining your customers, ensure that you treat your customers specially either as individuals or in medium to large groups.

Pay attention to what they say, and exceed their expectations on the tour either by allowing them participate in your presentation, or revealing a piece of information at the right time that would keep them animated. You can also provide incentives for the little customers or those that actively participate so as to give them memories to cherish.

22. Develop Strategies to Boost Brand Awareness and Create a Corporate Identity

The brand of your company is more than your name or logo; it is the experience your customers garner about your company, product or service. The strategies used to promote your escort business should be top notch, and if necessary, you should hire a brand expert or consultant to help out.

Below are the platforms that can be used to boost the brand of your company, while garnering publicity and clients as well:

  • Advertise your business in relevant magazines
  • Encourage your customers to help with referrals especially as you won’t see most of them again, but their referrals will always find you
  • Leverage on the use of social media on the internet, and make use of interactive picture platforms such as Instagram or Pinterest; or other interactive mediums like Twitter and Facebook.
  • Promote your business on your website
  • Make use of yellow pages or online directories
  • Distribute fliers, business cards and handbills in target areas and places
  • Attend associations that will ensure you network with other terrorists

23. Create a Suppliers/Distribution Network

If you run a standard escort business, you will need to source for supplies for items and equipments like ropes, life jackets, canoes, camera, first aid kits that you would need on the activities that would require them such as mountain climbing, or going on rivers.

This is why you need to be in a good relationship with the suppliers of all the needed raw materials, as it will help you carry out your business flawlessly. Even if you eventually go to get these things yourself at the market, you will need to get in good rapport with the person you are getting it from, as they will help you with tips that will ensure that you pick only the best for your business.

24. Tips for Running an Escort Business Successfully

To be truly successful in this field, you would need to have worked in the field, made friends and networked so as to build a relationship with the locals in the areas you will be required to work in, as well as the clients that would eventually be hiring you.

An escort is responsible for anything that a tour entails. This means as an escort, you can assume many roles, manager, operations manager, guide, as well as escort. Your job starts from planning the tours, calling up contacts, visiting sites, as well as putting up the itinerary; and then finding the market to patronize your business.

Finally, starting your escort business has to be in an area that will attract people to come visit. This means that it has to be near attraction sites, historical sites and even places of interests like parks and museums, especially as folks like to visit such places for learning and other purposes. Your presentation and charismatic skills have to be top notch, and you will also need to be creative to stand out.