How to Quickly Start A Background Check Business

by Contributor; Updated September 26, 2017

Employee background screening has become the norm in the hiring process and many companies, and especially small businesses, don't have the time or the means to adequately check up on all their job candidates. This leaves an opening for you to start your own background check company. A background check service has relatively low startup costs and low barrier to entry -- you don't need a special degree for this service, but you do need a firm understanding of federal, state and local laws.

Understand state, local and federal requirements for employee background checks. Have a firm grasp of the Federal Fair Credit Reporting Act, especially if you plan to make this a part of your business. Be sure that the company has written permission from candidates to screen their consumer credit reports.

Determine what services you will provide and pick a niche. For example, you may choose to focus on providing services to retailers, mid-size information technology businesses or small financial firms. The niche you target will also determine what types of background checks you'll perform, although the typical background check looks at criminal records, driving records, credit reports, education, past employment and professional licenses.

Market your services. The first thing you should do in getting the word out about your business is creating a website that details what types of services you provide as well as estimates for services. Join organizations for human resource and security professionals -- this is how you network and build trust with the people who will most likely utilize your services. Join the National Association of Professional Background Screeners to learn new information about the business and to get advice on building your services.

Create an office space. When running a background check company, you have two options: Run the business from a home office or set up physical locations.

Tips

  • Be sure to follow local laws regulating small businesses and business licenses.

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