The bare minimum needed to start your foreclosure cleaning business
One of the fastest ways to start a foreclosure cleanup business is to 1) decide you want it, 2) do some planning, 3) and get started right away. If you think about it too long, you’ll scare yourself to death and get stuck in the thinking phase. But with a business like foreclosure cleanup, the industry is wide open. All the numbers point to a booming company for 2010 and beyond.
Predictions from leading economists
With leading economists labeling the rise in foreclosures among major borrowers the “third wave of trouble,” companies offering foreclosure cleanup services are poised for tremendous growth. In 2010 alone, more than four million homeowners will receive foreclosure notices; more than half of them will go through foreclosure.
What’s more, $2.5 trillion in risky loans are expected to be restored in 2010 and 2011. Many of these loans are predicted to have been made to people who couldn’t afford the payments up front, creating a foreclosure market yet to come. more congested.
Foreclosure cleanup is the perfect opportunity to start a business, and with a little planning, your doors can be open in as little as a few weeks, ready to capitalize on while offering a much-needed service. And it’s a business that can be started part-time while still working.
Planning Your Foreclosure Cleaning Business
Decide to take two weeks to plan your foreclosure cleanup business. Write a business plan (outline format is fine with detailed notes) so that you have a direction, a path, for your business as it relates to services, pricing, equipment, and marketing.
Find out what services to offer
During your two-week business planning stage, you’ll figure out which services to start with. Foreclosure cleanup services can run the gamut. They can offer everything from debris removal, cleaning, lawn care, pressure washing, gutter cleaning, interior cleaning, painting, winterizing, window and door lining and replacement, locksmith services, inspections and more. . If you’re not careful, it’s going to be all over the place, so you’ll need to be really focused on choosing the services you want to get started with in your new business.
TIPS: Keep it simple at first. Start by offering only those services that you know you can handle in-house, and only those services that require minimal equipment purchases.
set your price
After creating a list of services, do some research and set your pricing guidelines. These will often change based on various factors as jobs come in, but they already have basic pricing guidelines in place before they open their doors. Call “like” services to see how much they charge, eg lawn maintenance, debris removal, gutter cleaning, etc. Set your prices competitively based on what they are charging, the factors of the job, what you are putting in, and how much you want to clean up from the job.
Obtain Your Foreclosure Cleanup Business License
Be sure to call the county clerk’s office to see what type of license you will need and to formally register your business. Go to the IRS website and sign up for an Employer Identification Number (EIN), also known as a Federal Tax Identification Number, so you’ll be right with Uncle Sam’s reporting requirements once the money starts rolling in.
How to get insurance for your business
Then call and get insurance quotes. You will need basic liability for your business and the right insurance for your vehicle. It’s easier to start as a cleaning/maintenance service. That’s a category where it’s easier to get insurance; but keep in mind that you can only offer services for which that insurance covers.
Setting up your website
Next, set up a quick website. There are several website templates online for little to nothing that will allow you to set up a quick web page. Visit template sites where you can set up a website cheaply or for free.
At a minimum, you’ll want to include information about your business, your services, and your contact information on your new website.
Order your business cards
Next, you’ll want to order your business cards. Try to match your business cards to the theme and/or colors of your website. This is another good reason to use print type websites for your web page. You can easily request cards that match the theme of your website.
Some sites even allow you to order “free” business cards if you keep your company name on the back of your cards. Not a bad trade-off for cutting costs in the early phase of your foreclosure cleanup business. However, you will end up paying for the shipping of the cards. (One such site will send you 100 “free” business cards, and you’ll only pay a few dollars to send the cards. Not bad.)
Create your marketing material
Order some matching postcards online for your foreclosure cleanup business and create some flyers on your computer that you can print. Then take them to a copy shop and have them duplicated, and start papering your surrounding community.
Together Call List Sweater
Next, you’ll want to put together a calling list of real estate agents in your areas (foreclosure realtors!), as well as a list of REO asset managers at banks, a list of larger property maintenance companies, and a list of property owners and investors. . Then you’ll want to call them directly and see how you can serve them with your new business.
Invent a special promotion to look especially at the interests of real estate agents. Also, offer them a discount if they belong, for example, to NAR (National Association of Realtors). Many real estate agents will go out of pocket for foreclosure cleanup costs on their listings and will be waiting for the banks to pay them. They will appreciate a discount on the price of your company.
Create a phone script for your company
Write a phone script so you know what you want to say when you call potential customers.
TIPS: Be sure to include your business name and your business services. If you receive a voicemail when you call, be sure to include the best time a potential customer can reach you, your phone number, and your website address so they can learn more about your business.
The basics!
These are just the basics to get your business off the ground quickly. Do some industry research and start planning today! As your business grows, it will become more formalized and add more policies and procedures that will ultimately benefit you, your business, and the growing stash of foreclosed homes.
Good luck on the front lines of the foreclosure cleanup industry!