Beyond the Inspection

One of the most important lessons I have learned in business is that being good at your trade and knowing how to run a business are two different things. That was true when I was a general contractor, and it is just as true today as a home inspector.

I started in construction in 1998 and eventually grew a general contracting company that performed commercial and government work. In the early 2000s, our company entered the US Small Business Administration’s 8(a) Business Development Program. We participated for approximately eight years and were awarded several federal projects, including one of our largest opportunities—building an airplane hangar for the Air National Guard.

The value of programs like 8(a) went beyond the contracts themselves. I learned about estimating, government procurement, financial management, recordkeeping, and business planning. More importantly, I learned there are resources available to small-business owners who are willing to look for them and put in the work. When I entered the home inspection industry and started my company in 2012, I brought those lessons with me.

Help Getting Through the Early Years

The first few years of a home inspection business can be difficult. You can be an excellent inspector and still struggle as a business owner because inspecting is only one part of running a company. You also have to understand marketing, accounting, insurance, taxes, cash flow, technology, customer service, and, eventually, hiring and management.

This is where small-business programs can make a difference. The SBA and its partners offer counseling, mentoring, business-development assistance, and access to capital. States and municipalities have programs of their own. Some programs are available broadly to small businesses, while others have specific qualifications based on factors like economic or social disadvantage, veteran status, gender, geographic location, or other eligibility requirements. Not everyone will qualify for every program, but that shouldn’t stop an inspector from finding out what is available.

When we started our inspection company, we pursued certification through Ohio’s Minority Business Enterprise (MBE) and Encouraging Diversity, Growth and Equity (EDGE) programs. We have maintained certification through the State of Ohio for years, and those programs became another resource as we developed the business.

During our earlier years, we were also able to take advantage of very favorable financing, including zero-interest financing available through programs for qualifying businesses. That mattered. A young company may need equipment, vehicles, technology, office space, employees, or simply working capital, yet those are often the years when obtaining a conventional business loan is most difficult. Sometimes access to the right program is what gets a small business over that next hump.

Government Work Isn’t Just for Big Contractors

Certification can also create opportunities for additional lines of business. Our inspection company is currently under contract with the City of Columbus, performing work associated with its Healthy Homes program. That opportunity connects directly with something I learned years ago in government construction: Don’t assume government work has nothing to do with your business.

For home inspectors, opportunities may exist with cities, counties, housing authorities, state agencies, nonprofit organizations, prime contractors, and other organizations involved with housing and property conditions. Depending on an inspector’s qualifications, these opportunities might involve housing programs, property assessments, environmental work, healthy-home initiatives, or other inspection-related services.

That does not mean your home inspector license automatically qualifies you for specialized government work. Every contract has its own requirements. The point is to start looking.

Government work can also involve subcontracting. You don’t necessarily have to win a major federal contract yourself. Larger contractors may need qualified small businesses to perform portions of their projects, and some government contracts include participation goals for certified businesses. Being properly registered and certified can put your company in a position to compete for those opportunities.

Find Out What You Qualify For

Another misconception is that small-business assistance is only for minorities. There are programs with specific requirements for minority-owned, women-owned, veteran-owned, economically disadvantaged, and other qualifying businesses, but that is only part of the picture. Other programs focus on small businesses generally or businesses operating in designated geographic and economically underserved areas.

The SBA, Small Business Development Centers, state development agencies, and government procurement assistance organizations can help business owners understand what programs may apply to them. My advice is simple: Don’t disqualify yourself before you ask. An inspector may discover opportunities for business counseling, mentoring, financing, certification, or government contracting that he or she never knew existed.

Get Your Business Ready

There is an important catch: Certification or financing won’t fix a poorly managed company. Before somebody lends you money or awards you a significant contract, they are going to want to know you have a legitimate business capable of performing the work. That means keeping good financial records, separating business and personal finances, maintaining proper insurance, filing taxes correctly, and understanding your numbers. Work with a good bookkeeper and CPA. Develop a business plan and update it as the company changes.

This is one of the biggest lessons I took from my years in government contracting. Programs can provide an opportunity, but your company still has to be ready for it.

The same applies to everyday inspection work. As owners, we have to spend time working on the business, not just in the business. I still perform inspections, but I also dedicate time to working with our office staff and inspectors, improving processes, reviewing the company’s structure, and developing new opportunities. If all of your time is spent performing inspections, it is easy to create a job for yourself instead of building a business.

Building More Than One Source of Revenue

Real estate markets change. Interest rates change. Referral relationships change. A company that depends entirely on one type of inspection or one source of referrals can become vulnerable very quickly.

Government and institutional work can potentially become another line of business alongside residential inspections, commercial inspections, environmental services, or other services that fit an inspector’s qualifications. The goal isn’t to chase every opportunity. It is to build a company with enough diversity that one slowdown doesn’t stop the entire business.

My own career is an example of how these programs can follow a business owner through different stages. As previously mentioned, years ago, my general contracting company participated in the SBA 8(a) program and eventually built an airplane hangar for the Air National Guard. Today, my home inspection company maintains Ohio MBE and EDGE certification and is performing Healthy Homes-related work under contract with the City of Columbus. Those are very different projects, but the business lesson behind them is the same.

Government programs didn’t build either company for me. We still had to find the opportunities, do the work, manage the company, and perform at a professional level. What those programs provided were resources, education, access to capital, and opportunities that helped us grow.

That’s the message I want to share with other ASHI members, especially inspectors in those difficult first few years of business. Don’t try to figure everything out by yourself. Find your local SBA resources, Small Business Development Center, and state or local business-development programs. Ask about mentoring, financing, certification, and contracting opportunities. Then make sure you’re doing something equally important: Take time away from inspecting houses to work on the company behind those inspections.

Being a good inspector can get you into this profession. Learning how to build a good business can help keep you here.

James Jones III, CEO of Home & Commercial Inspections, is a commercial property inspector and environmental testing specialist with nearly 30 years of broad experience in commercial inspections and environmental assessments, building a trusted track record of delivering results since 1998. Currently on the ASHI Board of Directors, Jones’ extensive skill set within the construction management field allows him to systematically spot potential problems and assess safety compliance, providing a thorough service so clients can make the best commercial real estate decisions for their business.