Starting a Private Investigation Service

Starting a Private Investigation Service - Background Info:

Private investigators work for attorneys, insurance companies, businesses and the general public; they may be on staff at a large corporation or be self-employed.

Their duties include gathering information for clients, locating missing persons, conducting surveillance, and doing background investigations for court cases.

You see a lot of TV drama time dedicated to private investigators. In the real world, private investigation services are a small but active part of most cities and towns. Let's say you have talent with finding information and dealing with confrontation. Then, this business might be for you.

Many people who begin a private investigation service have spent time in the military. Most PIs are, at least, very familiar with the legal system and how to handle conflict. You do need to have a very good idea of just what laws and rules you're bound to follow.

You'll also need to look the part so you can blend in with the background. Much of this business is involved in research, but just as much time is spent simply observing a subject and monitoring a subject's movements.

About 30% of those working as private investigators are working for themselves. Other gumshoes are part of a franchise chain. Franchise startups usually require a larger upfront investment, but the results can be faster.

Anytime someone needs information, a private investigation service can provide a valuable service.

People hire a private investigator for many different reasons. In economic down times, the business of repossessing cars and other items can become a significant part of some PI businesses. Some other specialties include:

Finding lost persons

Landlord and renter relations

Cheating spouses

Runaway children

Employee theft

Surveillance

Vital data collection

Starting a Private Investigation Service - Tasks And Skills Needed:

Business Specific Tasks:

If you are planning to do all the business tasks or hiring or subcontracting tasks, here's a list of tasks that need to be attended to when it comes to the business side of running a private investigation business:

Bookkeeping

Record keeping

Good interpersonal skills

General office

Industry Specific Tasks:

Same as above if you plan to do everything yourself or get help, here are some of the tasks necessary to operate a private investigation business:

Consult with clients about the work they want done

Decide if they should carry out the work

Refer clients on to other professionals such as the police

Investigate shoplifting, theft or dishonesty

Recover unpaid debts

Repossess items from debtors

Carry out credit checks

Follow and observe people under investigation

Work undercover when required to gather information for clients

Find witnesses and missing people

Write reports about investigation findings

Serve court summonses to witnesses

Attend court hearings to present evidence.

Starting a Private Investigation Service - Approximate Daily Hours Needed:

General Hours of Operation: - When your business is open - This business is open 24/7 as you determine your availability.

Hours Needed to Prepare - Before Opening and After Hours Activities - You need time to pack needed equipment, check all messages, schedule interviews with subjects and clients, keep good records; written, recorded, photographed.

Number of Employees Needed To Run This Business:

Minimum Number of Employees -During the Start Up Phase: You can start this business yourself on a full-time basis.

Number of Employees - Once Your Business is Up and Running Successfully:

Website maintenance

Record/Bookkeeping

General office

Customer Service

Junior Investigators or Partners

Researchers

Analysts

Information verification

Skill Requirements for This Business:

To be a self-employed private investigator, you must have a strong work ethic and not mind working alone most of the time.
You need to be mature, assertive, persistent, aggressive and logical.
Willing to work flexible, long, and odd hours throughout the year.
Be able to protect information and confidentiality.
High ethical values and morals, strong sense of service to others.
Professional undercover work

Licenses:

It's almost always best to start a private investigation service business small. Most PI services begin as a sole proprietorship or a limited partnership. You'll need to check and see which with your local government.

Private investigating requires a license in order for you to be recognized as a private investigator. Specifically some states require a person to present a duly accomplished license when he is under the employ of a third party to do things like surveillance, background checking and shadowing; things that a private investigator is expected to do in the line of duty.

Like all other requirements for the PI business, there are differences in the requirements being sought out by the individual states for people who are seeking to start a career in private investigating. If you wish to start a career in PI, then you should start inquiring with your state's agency in charge of registering private investigators about the requirements. Once you have been walked through the requirements, you should then start complying with them and start your career in the private investigation business.

Apply for your private investigator's license if one is required in your state. Your local police department or a local detective agency can tell you which government division handles this.

Approximate Minimum Start up Cost:

Bare essential: - The average startup cost is $1,000-10,000

Minimal exposure - The most common way to really get a private investigation service business going is to get an ad in the yellow phone directory. This is surprisingly expensive to manage. Even a small ad can cost you a few thousand dollars per month. You need to carefully figure out how much you can make each month before going to the next level with growing your business.

Obviously, it makes sense to start small and make the most of your advertising dollars. You should certainly give your card out to everyone you meet. Don't be shy about introducing yourself and the specific investigation services you offer. You never know who will need some help with a problem.

Joining an association or a chamber of commerce can help. It might expose the agency to advertising and/or publicity sponsored by that group, such as trade magazines.

Necessary Equipment to Run this Business:

Necessary Start-Up Equipment & Supplies:

Computer

Printer

Cell phone

Website

Reliable transportation

High-quality digital camera

Supplementary Equipment: - Equipment or helpful products that you can acquire to once your business is off and running:

Special telephoto lenses

GPS

Infrared equipment

Mobile internet-capable device

Tape recorder

Monthly Expenses To Consider:

Wages
Phone/cell phone
Internet access
Permits
Advertising/Marketing
Electricity
Water
Courses

Special Requirements and Considerations For This Business:

Find out all you can about the trends in the industry. Know your competition, in particular, their strengths and weaknesses. This will help you identify your competitive advantage. In other words, this will help you figure out what you can give your customers that they're not getting from the other businesses. And keep from emulating the competition's strategy. Instead, make the most of your own advantage points.
You'll need to decide what sort of jobs you'll focus on. This can be large or small jobs, but you should get a good idea for what sort of surveillance you'll be able to provide given your labor force. If it's just you, you'll have a hard time pulling off 24-hour coverage.
Get your licensing and fees taken care of, so you can show anyone who asks that you're the real deal. While you many need to make sure you can defend yourself in a serious situation, most often you need to be capable of great restraint. Defusing a situation and getting out with a minimum of confrontation is a strength in the private investigation service business.
Advertise your services as freely as possible. You can save on your startup costs by being content with a slow expansion. Decide the exact types of private investigation service work you'll be looking for.
Tailor your services to your most likely clients. Choose rates that are competitive and accurately reflect your actual expenses. This will require doing a bit of math.
Targeting your marketing is always a good approach to success with private investigation services.
Private investigation service businesses can be profitable if you really keep up with the constant marketing. Having a constant supply of business by focusing on an investigation niche is the most important part of standing out in a crowd.
There are laws in most states that forbid a person from representing themselves as the following: law enforcement, any government official or employee, and legal counsel.
Realize that many people in this field have a military or law enforcement background. Others have college degrees in business, criminal justice or political science. They are your competition for jobs.
Enroll in a detective school if you don't have any of the experience. You'll be taught the skills that a private investigator needs to have, including how to fingerprint, take samples of evidence, write reports and use firearms.
Being on good terms with the local police is not just friendly. It's also essential in making a good business relationships. Such relationships can also prevent misunderstandings.
Establish yourself in the field. If you're an absolute beginner, it may make sense to partner up with somebody more experienced or to work as an apprentice for another firm before opening your own. This will give you a better outlook of the opportunities available and will teach you insider secrets regarding searches, investigations and increasing your profits.

Pros And Cons of Opening A Private Investigation Business:

The Pros of Running a Private Investigation Business:

The work is challenging and exciting.

A specialized private investigator business can make a lot of money.

You can hire investigators to do the actual work for your business.

There are many areas of investigation you can specialize in.

You can be your own boss.

Private detectives work independently, although they may collaborate with local law enforcement in small towns or if sensitive information becomes available.

The Cons of Running a Private Investigation Business:

You'll need to write reports frequently and they must be of professional quality.

You may often have to work long, irregular, and solitary hours while you are doing surveillance work.

Some areas of private investigation can potentially be dangerous.

Keen competition is expected for most jobs.

Being taken seriously can be hard when just starting.

Type of Customers You Need to Attract:

Your customers will depend on which type or area of private investigation you choose to specialize your private investigation business in. Generally speaking however, your customers will be people or organizations who want information on either specific people or things, or who want information gathered for a specific purpose.

Private Investigation Business Statistics:

Job prospects for private investigators is expected to grow 18% in the years from 2006 to 2016. However, competition from retired police and military officers means private detectives will have to keep abreast of new technologies and investigative techniques.

See Bureau of Labor Statistics for current private investigation business stats.

Revenue:

Median annual wages of salaried private detectives and investigators were $41,760 in May 2008. The middle 50 percent earned between $30,870 and $59,060. The lowest 10 percent earned less than $23,500, and the highest 10 percent earned more than $76,640. Wages of private detectives and investigators vary greatly by employer, specialty, and geographic area.

Private investigation is hard work but this type of business is recession proof. For example, in tough economic times when people default on loans and banks can't find the people the money was loaned to, the services of a PI will be used. A private investigation business will thrive if the owner can see new business opportunities and capitalize on existing ones.

Private Investigation Business Resources:

Industry-Specific Websites:

FAQs About How to Become a Private Investigator

PI Portal

Courses:

PI Training Info

Penn Foster Career School

Secrets of Top Private Eyes Private Investigator Training Course

Equipment and Supplies:

Espionage Unlimited Spy Shop and Spy Store

PI Gear

Metro Spy Supply

Forums:

Private Investigator Forums

Private Investigator Discussion Group

USA Trace

Franchises:

PI Franchise

Blue Moon Agencies

Priority Investigations

Associations:

National Council of Investigation and Security Services

Private Investigators Association of America

National Association of Legal Investigators

Private Investigators Union

Books:

Private Investigator Booklet

Amazon

Software:

Cell Snoop

PI Detective Software

EZ Case Manager

eDetective

Spectorsoft

Other:

Search Pointers

Occupational Outlook Handbook

The Rominger Legal Private Investigator Directory

Businesses To Related to a Private Investigation Business:

Bill and account collectors
Claims adjusters, appraisers, examiners, and investigators
Police and detectives
Security guards and gaming surveillance officers