Home Inspection Business Plan [Sample Template]

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Are you about starting a home inspection business? If YES, here is a complete sample home inspection business plan template & feasibility report you can use for FREE. The real estate industry is a very vast industry that has loads of businesses opening up very frequently in it; and as such, there is a wide range of businesses with good turnover that an aspiring entrepreneur who is looking towards starting a business in the real estate industry can successfully start.

One of such businesses is a home inspection company. This business requires minimal startup capital and manpower and can be started from a home office.

A Sample Home Inspection Business Plan Template

1. Industry Overview

The home inspection business is a niche idea in the Building Inspection industry and firms in this industry basically perform inspections on buildings. When home inspection representatives inspect a building, they evaluate all aspects of its structure and component systems, and they prepare a report on the physical condition of the property.

These reports are written for buyers or others involved in real estate transactions. Please not that aside from home inspection companies, building inspection services is also included in this industry. If you are a close observer of the building inspection industry, you will agree that the demand for building inspection services will get a boost from the economic recovery over the next five years.

Despite the fact the weak housing market has hit industry businesses hard, the reinforcement of housing starts and rising number of existing home sales will contribute to growth.

Mortgage lending rates will continue to remain tight and hamper revenue; however, the industry is poised for recovery. Experts projected that the building inspection industry recovery will be driven by improvements in employment and per capita disposable income.

The Bureau of Labor Statistics (united states of America) projects an 11.1 percent job growth for the real estate industry between 2012 and 2022, which is about as fast as average. During that time, an additional 38,000 jobs will open up in the industry.

Hence, any home inspection company that is well equipped and positioned will rake in huge revenues from this industry within this period, and of course the future is bright. The Building Inspection industry is indeed a large industry and pretty much active in countries such as united states of America, United Kingdom, Germany, France, Italy, Holland, Switzerland, Australia and Canada et al.

Statistics have it that in the United States of America alone, there are about 24,209 registered and licensed home/building inspection companies scattered all across the United States responsible for employing about 36,989 and the industry rakes in a whooping sum of $3 billion annually.

The industry is projected to grow at 4.4 percent annual growth within 2012 and 2017. It is important to state that there is no establishment in this industry that has a lion market share.

A recent report published by IBISWORLD shows that in 2016, operators in the Building Inspector industry are expected to spend about $0.08 in capital investment for every $1.00 spent on wages, indicating a low level of capital intensity.

Given the industry’s service-based nature, labor makes up the majority of expenses. This is especially true for non – employers who make up the majority of enterprises. In such companies, the inspector pockets all the revenue minus the cost of doing business, thus there is a huge labor expense.

The bulk of work is visual, although inspectors may use equipment such as tape measures, surveying instruments, electrical metering devices and concrete strength testing equipment to complete various stages of an inspection.

Some of the factors that encourage entrepreneurs to start their own home inspection company could be that the business is a highly profitable business and an aspiring entrepreneur can successfully launch the business from the comfort of his or her home.

The building cum home inspection industry is highly regulated in the United States of America and anyone who aspires to start a home inspection company must apply and obtain a license before they can legally operate in the industry.

2. Executive Summary

Packer House© Home Inspection Company, Inc. is a licensed home inspection company. Our head office will be located in a standard and centrally located office facility in the heart of Columbia – South Carolina. Although our Head Office will be located in Columbia – South Carolina, but we will open our branch offices in major cities in all regions of the United States of America.

Within the first two years of operation we would have set up our offices in the following locations; South Carolina, New York City, Los Angeles, Florida, North Dakota, Boston, Dallas and Washington.

Packer House© Home Inspection Company, Inc. is going to be a self-administered and self-managed real estate investment trust (REIT). We will engage in a wide range of home inspection services. We will work towards becoming one of the largest home inspection companies in the United States of America with active presence in major cities.

As part of our plans to make our customers our number one priority and to become one of the leading home inspection companies in the United States of America, we will adopt international best practices that can favorable compete with the best in the industry. Packer House© Home Inspection Company, Inc. has overtime perfected plans that will help us to become a specialist in our area of business.

Packer House© Home Inspection Company, 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.

Packer House© Home Inspection Company, Inc. will be owned majorly by Andrew Lance and his immediate family members. Andrew Lance has a Degree in Estate Management, ICC Building Inspector Certification and Building Inspection and Certification | Construction | SGS.

He is a property guru that has worked with top Real Estate Companies in the United States of America for many years prior to starting his own business. Other investors with same investment ideology whose name cannot be mentioned here for obvious reasons are going to be part of the business.

3. Our Products and Services

Packer House© Home Inspection Company, Inc. is going to offer varieties of services within the scope of the home inspection industry in the United States of America. Our intention of starting our home inspection company is to favorably compete with leading players in the home inspection cum real estate industry both in the United States of America and in the world at large.

We are well prepared to make profits from the industry and we will do all that is permitted by the law in the United States to achieve our business goals and objectives. Our business offerings are listed below;

Inspecting and reporting on the structural attributes of a building
Reporting on and evaluating the component systems of a building (electrical, fire, roofing and plumbing)
Assessing compliance with building, electrical, plumbing and fire codes
Evaluating building plans and permits
Studying and assessing the soil composition and attributes of where the building is located
Reviewing and approving plans that meet building codes, local ordinances and zoning regulations
Issuing violation notices and stop-work orders until building in violation is compliant
Keeping daily logs, including photographs taken during inspection
Real estate consultancy and advisory services

4. Our Mission and Vision Statement

Our vision is to become one of the top 5 home inspection services companies in the United States of America within the first 10 years of starting Packer House© Home Inspection Company, Inc.
Our mission of starting a home inspection business is to grow the business beyond the city where we are going to be operating from to become a national and international brand by opening offices all across key cities in the United States and franchising.

Our Business Structure

Our company’s structure is not entirely different from what is obtainable in the real estate industry. As a matter of priority, we have decided to create a structure that will allow for easy growth for all our employees and also, we have created platforms that will enable us attract some of the best hands in the industry.

We are quite aware that the success of any business lies in the foundation on which the business is built on, which is why we have decided to build our home inspection company on the right business foundation. We will ensure that we only hire people that are qualified, honest, hardworking, customer centric and are ready to work to help us build a prosperous business that will benefit all our stakeholders.

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 depending how fast we meet our set target.

Packer House© Home Inspection Company, Inc. is fully aware of the modus operandi in the home inspection line of business, hence adequate provision and competitive packages has been prepared for independent sales agents. Our marketing department will be responsible for managing this aspect of our business structure.

Below is the business structure we will build at Packer House© Home Inspection Company, Inc. on;

Chief Executive Officer
Company’s Lawyer/Secretary
Admin and HR Manager
Home Inspection Officers
Business Developer/Sales and Marketing
Accountant
Customer Service Executive/Front Desk Officer

5. Job Roles and Responsibilities

Chief Executive Officer – CEO (President):

grows 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; developing incentives; developing a climate for offering information and opinions; providing educational opportunities.
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.
Accountable 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

Company’s Lawyer/Secretary/Legal Counsel

Accountable for drawing up contracts and other legal documents for the company
Consult and handle all corporate legal processes (e.g. intellectual property, mergers & acquisitions, financial/securities offerings, compliance issues, transactions, agreements, lawsuits and patents et al)
Develop company policy and position on legal issues
Research, anticipate and guard company against legal risks
Represent company in legal proceedings (administrative boards, court trials et al)
Play a part in business deals negotiation and take minutes of meetings
Responsible for analyzing legal documents on behalf of the company

Admin and HR Manager

Responsible for overseeing the smooth running of HR and administrative tasks for the organization
Designs job descriptions with KPI to drive performance management for clients
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.

Home Inspection Officer

In charge of inspecting and reporting on the structural attributes of a building
Responsible for evaluating the component systems of a building (electrical, fire, roofing and plumbing)
Assesses compliance with building, electrical, plumbing and fire codes
Evaluating building plans and permits
Studies and assesses the soil composition and attributes of where the building is located
Reviews and approves plans that meet building codes, local ordinances and zoning regulations
Issues violation notices and stop-work orders until building in violation is compliant
Keeps daily logs, including photographs taken during inspection
Handles real estate consultancy and advisory services

Marketing and Sales Executive/Business Developer

Identifies, prioritizes, and reaches out to new partners, and business opportunities et al
Identifies development opportunities; follows up on development leads and contacts; participates in the structuring and financing of projects; assures the completion of development projects.
Responsible for supervising implementation, advocate for the customer’s need s, and communicate with clients
Finds and qualifies land for development based on company’s land requirements; maintains a land search database; initiates discussions with property owners about the possible sale of property
Develops, executes and evaluates new plans for increasing sales
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 managers with financial analyses, development budgets, and accounting reports; analyzes financial feasibility for the most complex proposed projects; conducts market research to forecast trends and business conditions.
Answerable for financial forecasting and risks analysis.
Performs cash management, general ledger accounting, and financial reporting for one or more properties.
Accountable for developing and managing financial systems and policies
In charge of administering payrolls
Ensures compliance with taxation legislation
Handles all financial transactions for the company
Serves as internal auditor for the company

Front Desk/Customer’s Service Officer

Receives Visitors/clients on behalf of the organization.
Receives parcels/documents for the company.
Handles inquiries via e-mail and phone calls for the organization.
Distributes mails in the organization.
Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provide the client with a customer service experience of the highest level.
Consistently stays abreast of any new information on the company’s properties that are put up for sale, promotional campaigns etc. to ensure that accurate and helpful information are supplied to clients when they make enquiries.

6. SWOT Analysis

The fact that home inspection business is a very rewarding business does not mean that there are no challenges in the industry. Starting a home inspection business in the United States of America comes with its own fair share of challenges, you would have to abide by the law and also compete with loads of other entrepreneurs in the real estate business value chain who also are interested in making a living and building a business in the US.

In order to compete favorably in the real estate industry as a home inspection company, we have been able to hire the services of tested and trusted business consultants to help us conduct critical SWOT analysis for us. Here is a summary from the result of the SWOT analysis that was conducted on behalf of Packer House© Home Inspection Company, Inc.

Strength:

Some of our strengths that we will be bringing to the table in the home inspection industry is our robust relations with home owners and property investment moguls in the whole of the United States of America, our access to a pool of tenants and our team of experts who have cut their teeth in the cum home inspection line of business.

Our commission structure and relationship with freelance real estate agents in Columbia – South Carolina will also count towards our advantage.

Weakness:

As a newbie in the home inspection line of business, we might have some challenges competing with big time realtors and home inspection companies that have been in the industry for many years; that perhaps is part of our weakness.

Opportunities:

The opportunities in the home inspection industry is massive considering the number of tenants who would want to change apartments or relocate to another city and would need professional home inspection officers. We are well – positioned and ready to take advantage of any opportunity that comes our way.

Threat:

Some of the threats that we are likely going to face as a home inspection company are unfavorable government policies, and global economic downturn; global economic downturn usually affects spending power and the home inspection line of business is known to encounter decline in sales and profits during this period. There is hardly anything we can do as regards these threats other than to be optimistic that things will continue to work for our good.

7. MARKET ANALYSIS

Market Trends

The trend in the home inspection industry is that there are no fixed profit projections when engaging in a home inspection deal. The profit you stand to gain depends on loads of factors amongst which are your attention to details, ability to cut cost for your clients and knowing exactly when to seal a home inspection deal.

So also, with the high rate of people migrating to the United States, it is the norm for them to contract home inspection companies to help them inspect proposed properties that they intend leasing or buying. In essence, most home inspection companies are targeting migrants who are likely going to contract home inspection services to professionals.

Another obvious trend that is common with home inspection companies in the United States of America is that most of them are improvising on more means of making money in the real estate industry and as such, they are also acting as property developers and home staging agents amongst many other functions.

One thing is certain for every home inspection company; if you are hardworking, creative and proactive, you will always generate enough income to meet all your overhead and operational cost.

8. Our Target Market

As a home inspection company, our target market cuts across people (tenants) of different class and from all walks of life. We are coming into the home inspection industry with a business concept that will enable us work with the rich as well as the poor who are interested in renting homes or offices at an affordable price.

As a matter of fact, our target market is the whole of the United States of America and we have put plans in place to recruit freelance agents to represent our business interest wherever they are located in the United States of America. Below is a list of the people and organizations that we have specifically designed our services for;

Families who are interested in acquiring/renting a decent and well renovated home.
Corporate organizations who are interested in acquiring their own property/properties.
Foreign investors who are interested in owning properties in the United States of America.

Our Competitive Advantage

The availability of competent and reliable home inspectors under our payroll, our business process and of course our pricing model are part of our competitive advantage.

Another possible strategy for winning our competitors in this particular industry is to build a robust clientele base, and ensure that our inspection reports are top notch. Our organization is well positioned, key members of our team are highly reliable and competent and can favorably compete with the some of the best in the home inspection industry.

Lastly, our employees will be well taken care of, and their welfare package will be among the best within our category in the industry. It will enable them to be more than willing to build the business with us and help deliver our set goals and objectives. We will also engage freelance marketing agents on a commission level to help us market our services.

9. SALES AND MARKETING STRATEGY

Sources of Income

Packer House© Home Inspection Company, Inc. is established with the aim of maximizing profits in the home inspection industry. Although we are a home inspection company, but part of our work force are also licensed real estate agents hence we intend generating additional income from diverse means in the real estate agency.

We have successfully built a vibrant real estate network that covers the whole of the United States of America so as to help us build a profitable business. Below are the sources we intend exploring to generate income for Packer House© Home Inspection Company, Inc.;

Inspecting and reporting on the structural attributes of a building
Reporting on and evaluating the component systems of a building (electrical, fire, roofing and plumbing)
Assessing compliance with building, electrical, plumbing and fire codes
Evaluating building plans and permits
Studying and assessing the soil composition and attributes of where the building is located
Reviewing and approving plans that meet building codes, local ordinances and zoning regulations
Issuing violation notices and stop-work orders until building in violation is compliant
Keeping daily logs, including photographs taken during inspection
Real estate consultancy and advisory services

10. Sales Forecast

It is a known fact that as long as there are tenants in the United States of America, there will always be need to for them to hire the services of home inspection companies from time to time.

We are well positioned to take on the challenges that are synonymous to home inspection businesses in the United States, and we are quite optimistic that we will meet out set target of generating enough profits from our first month of operation and grow the business beyond Columbia – South Dakota to other states in the United States of America within record time.

We have been able to critically examine the home inspection line of business, 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 peculiar to similar start – ups in Columbia – South Dakota;

First Fiscal Year: $200,000
Second Fiscal Year: $500,000
Third Fiscal Year: $800,000

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 and any major competitor offering same services as we do within the locations where we have a strong business presence. Please note that the above projection might be lower and at the same time it might be higher since some factors are beyond our control.

Marketing Strategy and Sales Strategy

We quite mindful of the fact that there are stiff competitions in the home inspection market 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.

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 equipped to meet their targets and the overall goal of the organization. The training is not restricted to only our full – time employees but would also extend our freelance brokers.

Our goal is to become one of the leading home inspection 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 in the industry.

Introduce our home inspection company by sending introductory letters alongside your brochure to households, corporate organizations, businesses and other key stakeholders throughout the city where our home inspection company is located.
Advertise on the internet on blogs and forums, and also on social media like Twitter, Facebook, LinkedIn to get our message across, so that those on the social media will know who to call when they need the services of home inspection companies within our location
Create a basic website for our business so as to give the business an online presence
Directly market our services
Engage in road shows in targeted business communities from time to time to promote our home inspection business
Join local home inspection business associations for industry trends and tips
Join local chambers of commerce and industry with the aim of marketing our services
Advertise our business in community based newspapers, local TV and radio stations
List our business on yellow pages’ ads (local directories)
Encourage the use of Word of mouth marketing (referrals)

11. Publicity and Advertising Strategy

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

Below are the platforms we intend to leverage on to promote and advertise our home inspection business;

Place adverts on both print and electronic media platforms
Sponsor relevant TV shows so as to be able to communicate our brand and what we do
Maximize our company’s website to promote our business
Leverage on the internet and social media platforms like Instagram, Facebook, Twitter, LinkedIn, Google+ and other platforms (real estate online forums) to promote our business and list our properties for sale and for lease.
Install our billboards at strategic locations in and around Columbia – South Carolina
Distribute our fliers and handbills in targeted areas from time to time
Attend landlord and residents association meetings with the aim of networking and introducing our business.

Ensure that all our workers wear our branded shirts and all our vehicles and ambulances are well branded with our company’s logo et al.

12. Our Pricing Strategy

Part of our business strategy is to ensure that we work within the budget of our clients to help them meet their expectations. It is the practice in most parts of the world for properties to be valued by professionals based on the area the facility is located, the type of facility and other factors.

Since we are not directly in control of the pricing system in the real estate industry, we can only abide by what is obtainable when it comes to fixing a price for a home inspection contract. But one thing is certain, we will ensure that we deliver excellent jobs whenever we are contracted to do so.

Lastly, we will ensure that we 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 our clients from time to time especially when they recommend clients to us.

Payment Options

At Packer House© Home Inspection Company, Inc. our payment policy is all inclusive because we are quite aware that different people prefer different payment options as it suits them. Here are the payment options that Packer House© Home Inspection Company, Inc. will make available to her clients;

Payment by via bank transfer
Payment via online bank transfer
Payment via check
Payment via bank draft

In view of the above, we have chosen banking platforms that will help us achieve our plans without any hitches and we will also pay our freelance sales agents with same platforms. Our bank account numbers will be made available on our website and promotional materials to clients who may want to pay for our services.

13. Startup Expenditure (Budget)

From our market survey and feasibility studies, we have been able to come up with a detailed budget on achieving our aim of establishing a standard and highly competitive home inspection company in Columbia – South Carolina and here are the key areas where we will spend our startup capital;

The total fee for incorporating the business in The United States of America – $750.
The budget for permits and license – $2,000.
The cost for hiring a Consultant – $2,500.
The cost for computer software apps (Accounting Software, Payroll Software, CRM Software, Microsoft Office, QuickBooks Pro, drug interaction software, Physician Desk Reference software) – $7,000.
The budget for insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $5,400.
Cost for payment of rent for a suitable Office facility with enough space in Columbia – South Carolina for 12 months at $1.76 per square feet in the total amount of – $105,600.
The cost for office remodeling (construction of racks and shelves) – $20,000.
The cost for equipping the office (computers, printers, fax machines, furniture, telephones, filing cabins, safety gadgets and electronics et al) – $15,000.
Other start-up expenses including stationery ($500) and phone and utility deposits ($2,500).
Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $70,000.
The cost of Launching our official Website – $600.
Additional Expenditure (Business cards, Signage, Adverts and Promotions et al) – $5,000.

Going by the report from the market research and feasibility studies conducted, we will need over two hundred and fifty thousand (250,000) U.S. dollars to successfully set up a small scale but standard home inspection company in the United States of America.

Packer House© Home Inspection Company, Inc. is a business that will be owned and managed by Andrew Lance and other business partners. They are the financiers of the business which is why they decided to restrict the sourcing of the startup capital for the business to just three major sources.

Generate part of the startup capital from personal savings and sale of stocks
Generate part of the startup capital from friends and other extended family members
Generate a larger chunk of the startup capital from the bank.

N.B: We have been able to generate about $100,000 (Personal savings $80,000 and soft loan from family members $20,000) and we are at the final stages of obtaining a loan facility of $150,000 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.

14. Sustainability and Expansion Strategy

The future of a business lies in the number of loyal customers that they have, the capacity and competence of the 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 Packer House© Home Inspection Company, Inc. is to build a business that will survive off its own cash flow without the need for 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 home inspection services a little bit cheaper than what is obtainable in the market and we are well prepared to survive on lower profit margin for a while.

Packer House© Home Inspection Company, 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.

As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of three years or more. 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 various banks in the United States: 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
Renting of Office Facility and remodeling the facility in Columbia – South Carolina: Completed
Conducting Feasibility Studies: Completed
Generating capital from the CEO/President and Business Partners: Completed
Application for Loan from our Bankers: In Progress
Writing of Business Plan: Completed
Drafting of Employees Handbook: Completed
Drafting of Contract Documents and other relevant Legal Documents: In Progress
Design of The Company’s Logo: Completed
Printing of Promotional Materials: Completed
Recruitment of employees: In Progress
Purchase of the needed furniture, office equipment, electronic appliances and facility facelift: In progress
Creating Official Website for the Company: In Progress
Creating Awareness for the business: In Progress
Health and Safety and Fire Safety Arrangement: In Progress
Establishing business relationship with key players in the industry (networking and membership of relevant real estate bodies): In Progress