(+1) 9784800910, (+44) 020 3097 1639 [email protected]
Select Page

Nearly every US business now runs a background check on every serious applicant for any available positions. How many background checks are there? Also excluded are other background checks, such those to confirm employment or for potential love partners. 

Because of this, the background check sector has been expanding consistently for years and is predicted to do so in the next years. Starting a background check company now will allow you to contribute to increased security and take advantage of a rising industry. It is something you can manage on your own time from home and yet make a reliable living. 

You’ll need some business expertise, of course, in order to succeed. You’re in luck because this step-by-step manual sets out all you need to know to create, launch, and begin checking your way to success in your business. 

Step 1: Find Out if this is the Right Business for You?

Despite being simple to start and manage, a background check business is not for everyone. Make certain that the day-to-day operations and the sector fit your needs before beginning a new firm.

Positives Vs Negatives

Steady demand — Employers must do background checks
Flexibility — Work from home and choose your own hours 
Low startup costs — just requires a little amount of tools and expertise
Small prospect for profit
The monotony of repetitive labour
Rising levels of competition
  • Industry size and past growth – The US background check services industry is currently valued at slightly under $3 billion, having expanded consistently at 1% over the previous five years.
  • Growth forecast – From now through 2028, the background screening market is expected to increase by at least 9% yearly.
  • Number of businesses – There are around 2,500 companies in the US that do background checks.
  • Number of people employed – Approximately 26,000 people are employed in the sector.

Cost of Starting Background Check Business

Depending on the business model you select, starting a background check company has a range of costs. The start-up cost of a home-based business is as little as $2,000, whereas the cost of opening an office is around $10,000. 

Both times, the majority of the startup money will go into purchasing office supplies and specialized computer software as well as other equipment. A significant percentage of the first budget will also go on marketing, including a website, as well as regular company expenses like insurance, licensing, and permits.

If you want to learn how to do background checks, Udemy’s online platform has a bootcamp that costs $130, whereas ESR Check has a more comprehensive course offering. 

Is Background Check Business Profitable?

The following are standards for industry revenue per firm and revenue per employee:

  • 1,104,972 dollars in revenue per company
  • $111,701 in revenue per worker
  • Employee count per company: 10

The income potential of your background check company may be predicted using these numbers in the manner listed below. 

Aim for 50% of the per employee standard for your sector in the first two years if you’re a home-based solopreneur, which translates to around $55,000 in yearly sales. As a home-based business, you should be able to generate an 80% profit margin by keeping your operational costs low. Your profit under these circumstances is around $45,000 annually. 

As your company grows and you gain a solid reputation, you’ll want to open an office, recruit full-time staff, and lower your profit margin to 35%. However, you might anticipate achieving 75% of the per-employee industry average with just 10 workers, which would result in yearly sales of around $840,000 and profits of almost $295,000. 

Entry Barriers

  • There are several even though there aren’t many entrance requirements for background check businesses.
  • There will be no opportunity for originality or creativity in the services provided by your background check company since they will be industry standards. Being distinct from your rivals is virtually difficult as a result.
  • Additionally, it implies that a consumer who needs background check services has no real incentive to switch businesses, which makes it more challenging to cultivate a network of devoted clients.

Step 2: Create a Strategy

Identify a Gap

Businesses that do background checks have often catered to their local communities and had a small geographic reach. These geographic barriers are dissolving as the globe becomes more and more online, opening up a larger market for businesspeople who can identify an undiscovered niche or find a method to stand out from the competition. 

Market analysis is always a crucial stage in starting your new background check company, regardless of whether your product is local or online. To compare services, costs, and client feedback, look up background check companies in your neighborhood. Finding a market gap to fill is what you’re after. A firm that provides both background checks and real-time criminal surveillance, for instance, could be lacking in the local market.


  • Nowadays, there are many other reasons to perform background checks, while employment-related inquiries remain the most popular ones. In order to perform a background check on a candidate, you will look into their possible criminal records, credit history, professional licenses and certifications, academic credentials, and employment history.
  • Additionally, you might provide background checks for potential partners, tenants, franchises, and childcare providers. In addition to background checks, you may charge extra for a social media screening. 


The cost of a background check service varies according to the investigation done and the processes necessary, but you should be able to charge $100 for a reasonably in-depth, nationwide investigation. For less money, maybe $40, you might provide additional state-specific, local background checks. 

The Step By Step Profit Margin Calculator may be used to calculate your markup and final price points once you have an understanding of your expenditures. Do not forget that the prices you employ at launch should be flexible if the market requires it.

Target Market

Businesses of all sizes, from the largest to the smallest, will make up your target market. Look for businesses that employ regularly; you can locate them on LinkedIn, Google, and Yelp. 


You could choose to work remotely in the beginning to reduce expenses. But if your company expands, you could need to rent an office and you’ll probably need to recruit people for a variety of jobs. On websites like Craigslist, Crexi, and Instant Offices, you may locate business space for rent in your neighborhood.

You might wish to abide by these general guidelines while selecting a commercial space:

  • Accessible by public transportation in a central location
  • With plenty of natural light and ventilation
  • As your firm expands, your lease might be made more accommodating.
  • A facility that is ready to use and doesn’t require any substantial upgrades or repairs

Step 3: Write a Business Plan

Every company need a plan. This will serve as a manual to help you through the launch process for your firm while staying focused on your major objectives. An investor’s and partner’s ability to comprehend your firm and its goals is also enhanced by a business plan:

  • Executive Summary: Produced once the plan is finished, provides a concise summary of the whole document.
  • Business Overview: Including ownership, vision, purpose, and corporate goals.
  • Product and Services: Give a thorough description
  • Market Analysis: Analyze the market by doing a SWOT analysis and evaluating trends like changes in demand and development potential.
  • Competitive Analysis: List of the benefits of your services and compare them to those of your top rivals after doing a competitive analysis of each.
  • Management Team: Overview including a corporate structure, information on each member’s responsibilities and educational background.
  • Operational Plan: The operational plan for your firm outlines logistics, office location, essential assets, and other purchasing decisions.
  • Financial Plan: Three years of financial planning, which includes startup expenses, break-even analyses, profit and loss projections, cash flow, and a balance sheet.
  • Appendix: Added financial or commercial documentation.

Step 3: Create a Marketing Plan

Digital marketing should still be a priority even when some of your business will originate from online visitors. It’s crucial for new firms to spread the word since it will increase brand and client recognition. 

Establish links between your social media accounts and your website once it is up. The ability to generate interesting posts that promote your items on social media makes it an excellent tool for company promotion: 

  • Facebook is a fantastic tool for paid advertising since it enables you to target particular demographics, such males under 50 in the Cleveland region. 
  • Instagram is a Facebook-like advantages with a different audience.
  • Website: SEO will make your website more visible at the top of relevant search results, which is essential for boosting sales. Make sure to optimize your website’s calls to action. Test different text, color, size, and positioning options for calls to action like “Call Now.” The number of clients may rise significantly as a result.
  • Google and Yelp: For companies that depend on local clients, listing on Google My Business and Yelp might be essential to attracting attention and clients. 
  • Signage – Put up enticing signs at both your store and website.
  • Flyering – Hand out fliers throughout your area and at professional gatherings. 
  • Post a video – Create a video and post it describing your screening services. If you use comedy, it could gain popularity.
  • Email marketing/newsletter – Send consumers and prospects regular emails as part of your email marketing and newsletter strategy. Personalize them. 
  • Paid social media advertisements- Use sites that can help you contact your target audience and run focused advertising.
  • Pay–per-click marketing –  Use Google AdWords for pay-per-click marketing to rank higher in search results. Do some keyword research beforehand.
  • Do a webinar – Create a webinar and use a video lecture to share your knowledge about background checks with other people.
  • Testimonials –  Customer reviews on the value of your security checks are welcome.