The $99 Sweet Spot

I know a lot of people get into the home inventory business with the promise of GETTING RICH QUICK!!! but the reality is, it takes time to build this business. The general public is pretty much unaware of the availability of providers who offer this service -- and, until they have a claim, they don't understand the need.

So I'm going to buck the conventional wisdom and encourage new (and existing) service providers to see their business development efforts as a longer term strategy.

I live in Omaha, Nebraska -- the home of the college baseball national championships -- the College World Series -- and I'm going to explain this strategy with a baseball analogy.

Instead of trying to hit a "HOME RUN" -- that is, a $400-$500 inventory order -- try hitting a series of "base hits." Your first goal would be to get prospects to allow you to come out and offer a free evaluation of their needs. That will allow you to see what they've got to inventory (home, garage, shed?) and show them your sample inventory book.

Your second goal should get them to buy SOMETHING. That might be an Express Inventory (a concept I outlined in my earlier post on jumpstarting your home inventory service business), or an entry-level package (under $150).

Your third goal should be to sell them an ADDITIONAL service, such as a DVD add-on to their Express Inventory, or maybe some Data Dots labeling, or a home disaster kit or first-aid kit or a home fire extinguisher.

Your fourth goal should be to recontact them after six months and do either an Update Inventory or expand their initial inventory to include further detail (maybe getting them to spend an additional $100 to do a detailed inventory of their garage or basement this time around).

Your fifth goal (and this can come anywhere along the first four steps) should be to get them to refer 2-3 other folks who might be interested in your services -- that could be neighbors, friends, or relatives.

This is a business that will build over time. Build positive momentum by getting some sales (even small ones) under your belt right away ... and then build up to larger ones. It's a strategy for success ... and the sweet spot is easier to achieve than trying to ring up a $500 sale right off the bat.

Keys to Success for Home Inventory Service Business Owners

A recent visitor to the Home Inventory Business Forum asked for advice for someone considering getting into the business. I responded with my opinion of the skills required for success.

In my opinion, these are:

** Your business skills. There is a fairly significant ramp-up period before you'll begin to generate steady income, so your ability to control expenses while increasing your profile (i.e., advertising investment) is critical. Cash flow will be the key in the first six months.

** Your marketing and sales abilities. Simply put: If you're not comfortable selling yourself, this is not the business for you. At least initially, you ARE your business. You are asking strangers to let you into their homes and you'll list every (well, not EVERY) worldly possession they own. If you can't build credibility with prospects, you won't have customers. If you can't build relationships with prospective referral sources, you'll struggle ... because frankly, early on you'll get most of your clients from personal relationships or referrals, not from your website or any advertising you do.

** Persistence. Every business owner on here will tell you that they ran into roadblocks as they worked to launch their home inventory service business. It could be technical things -- computer or software issues, an equipment malfunction -- or cash flow problems (investing in your startup with no promise of immediate revenues) or even overcoming your own hesitations about running your own business (that one usually comes with the filing of your first tax return -- or paying your first estimated tax payment -- if you've never been self-employed before).

Your Business Phone and Yellow Pages Advertising

You might be wondering: What kind of phone number should I set up for my home inventory service business? Should I use my existing home number? My existing cell phone number? Should I get another cell phone number? Or should I get a separate business phone line?

There are pluses and minuses to each. There's no extra cost if you use your existing home or cell phone numbers, but you won't get a tax deduction for using either of them. And you won't be able to answer your phone professionally ("Georgia Home Inventory, this is Louise").

Add a line to your existing cellular contract, and you'll be able to answer with your business name, but you'll be using minutes (unless you're on an "unlimited local calls" contract like Cricket). But, in many markets, you can't get a listing in the local Yellow Pages with a cell phone as your primary number.

Because in the Home Inventory Service business, "all business is local," you should consider at least a line listing in your local Yellow Pages (many areas have more than one book; choose the "major" book for your area, even if the "other" book offers you a better deal). It's probably not worth your while to pay for anything more than a line listing, as (at least in my local books), there isn't a specific Yellow Pages section for "Home Inventory Service." You just want to be listed in the White Pages so that if someone knows your business name, they can find you there.

A business line will get you a free listing in your local Yellow Pages (generally, it's a free listing in the white pages, and a "line" listing in the Yellow Pages). As your business grows, you will want prospective customers to be able to find you ... and if they've heard the name of your business, they will want to find you in the phone book. (Yes, I know it's hard to believe that people still use phone books in this day and age!)

You might also look into a "Market Expansion Line" with your current (landline) service provider. This is a service that provides a new phone number, but the calls ring in on your existing phone line, with a different ring tone. (That way, you can know to answer it with your business name.) When I set up mine in the early days of my business, you paid a small monthly fee, and then only paid for the calls that you received. I believe it was also eligible for the free Yellow Pages listing, and you can convert it to a "traditional" phone line at any time in the future. I think you can also have it "forwarded" to any phone -- so technically, you could have it forwarded to a cell phone.

There are a TON of options out there nowadays, so check with your local phone company and see what they offer.

Here's a link to Qwest's Market Expansion Line info:
http://www.qwest.com/pcat/large_business/product/1,1016,117_4_25,00.html

You can find out about your local Yellow Pages directory options through the national association:
http://www.buyyellow.com/index_flash.html

Or by using the contact information in the directories you likely have laying around your house

If you ARE using a non-business phone, we recommend a service like Innuity's LeadConnect to get your business listed in *online* search directories (like Google and YellowPages.com). Click on the link below to find out more (the service is just $39.95/month or $199.95/year). Click here and "Help your customers find you!""

Get Free Help for Your New Home Inventory Service Business

Most people who start a home inventory service business are not "serial entrepreneurs" -- instead, this is likely your first business. Because the statistics for start-up businesses overall aren't that great (it's estimated that fewer than 50% of business make it to the five-year point), you can increase your likelihood of long-term success by getting help with your new company.

One excellent source of help is SCORE, which stands for "Service Corps of Retired Executives." Their new Online Training programs are FREE, and can help you with your business start-up:
http://www.score.org/online_courses.html

With courses on business planning, financial management, tax compliance, advertising, and technology, you'll get ideas for establishng a solid foundation for your business. You can also take advantage of their free network of business advisors/mentors -- available in communities across the nation and now online!

There are also dozens of "how-to" articles online.

They also have a section on disaster preparedness (targeted towards business owners, but it has a lot of useful information for home inventory service business providers too!):
http://www.score.org/disaster_preparedness.html

Your New Business Startup Checklist

Here's some items to add to your "to do" list for starting your home inventory service business:

• Secure startup funds ($1000) – for initial marketing materials (business cards, website) and equipment (home inventory service software, camera, props, etc.). This presumes you already have a home computer and printer.
• Name your business (be sure to check availability of registering your name with the state, and finding a good, compatible website domain).
• Apply for a federal tax identification number.
• License your business (if required for your state).
• Obtain business insurance (including liability insurance).
• Develop your business plan and marketing plan.
• Set up your business phone number (or at least a separate phone number; for example, a second line on your cellular phone account)
• Join NAHIP.
• Conduct two sample inventories (minimum) and obtain testimonials.
  

Who's In Your Network?

Wondering how to get your first dozen clients or so under your belt? Here's a list of potential prospects. Offer them a 50% discount for being one of the first 10 inventories you complete as part of your new business launch! But they must also agree to serve as testimonials and referrals for you if they are satisfied with your services (and they should be!) Then you'll be able to feature them on your website and in your marketing materials. (Be sure to get a signed release form giving permission to feature them in your advertising, without revealing details about their specific inventory -- and be sure to take pictures of them -- and you -- while the inventory is in progress. You might bring along a friend or family member to take these "extra" posed photos of you "in action" with clients.)

You can make up little business-card sized "Grand Opening Certificates" which offer the discount, either to a specific number of people or with a time limitation (valid on inventories scheduled by Aug. 31, 2007; subject to availability). Staple those to your brochures and include them in the letters you send to your network (see below).

Who's In Your Network?
* Friends
* Relatives
* Parents of children's friends
* Parents of your friends
* Relatives of your friends
* Club members (country club, swim club, town club, collecting club, sports club)
* Common interest associations/affiliations
* Military service people
* Your holiday card list / personal address list (send a letter, brochure, and business card to each and every one of them announcing your new venture)
* Sorority/fraternity
* Cousins
* Neighbors, block-party attendees
* Sports team members

Professional / Third-Party Contacts
* Real Estate Brokers
* Financial Advisors (especially for estates)
* Attorneys (especially real estate attorneys)
* Bankers (again, look for ones who work with estates)
* Insurance Agents

Business Contacts
* Current and previous associates and managers
* Consultants
* Vendors, Suppliers, Salespeople
* Professional associations
* Seminar, conference, and workshop attendees
* Business owners (a wholly separate market to target)
* Insurance and financial industry associations (NAIFA, IIA, SFSP, FPA -- all of these have local chapters and usually newsletters that you can advertise in -- good for "name recognition" before you send your letter and make the follow-up call -- remember, it takes 9 impressions before you become memorable!)

Educational Contacts:
* Elementary, middle, and high schools friends and teachers
* College friends, alumni associations (they will often put in a notice about your new business in their "Alumni Update" newsletter -- great if you're still "local")
* Professors, coaches, advisors
* Adults education teachers and/or classmates

Community Contacts:
* Civic and political leaders
* Clergy/congregation (You should DEFINITELY put an ad in your church bulletin if you're active in the church)
* Volunteer affiliations, PTA
* Health club members
* Local organizations; boards, scouts

Most of these (in contrast to insurance agents) will be "warm" referrals already -- that is, you can reference a personal association in your correspondence or conversations. They should "know" you or be at least 2 degrees of separation from you (in the whole 6 degrees of separation world). That is, if they don't know *YOU*, they know someone who DOES know you.

The idea of reaching out to collector's clubs is a wholly separate one -- find them (check your local library for the Gale "Encyclopedia of Associations" and see which ones meet locally -- or find some of this information online) and offer to speak to their group about home inventories. These are individuals who have a LOT of money invested in their items. They might (or might not) have catalogued their collections, but they also need home inventories, because a lot of them have custom display cases and specially designed rooms that would probably not be valued appropriately if they had a claim. You could also offer a special, time-limited savings offer for inventories booked within 30 days of your talk, and you could write an article for their newsletter (trade out for an ad in a couple of issues), if they have one.

Also, while you're cultivating referrals, consider contacting the manager of any local extended-stay apartment complexes (these often offer fully-furnished units). Offer a "group rate" to inventory all of them.

Does your town/city have a "small business suite" complex? Approach the manager and ask if you can bring in breakfast (preferred, it's cheaper -- donuts and bagels and juice) or lunch one day in exchange for being able to hang out in the common area and pass out your business cards and information to the business owners who rent space there. (Do it on your lunch break, or take the day off work to focus on business development.) We have units like this in Omaha ranging from 10 small suites up to buildings with 40-50 offices. If you charged $100 per room (most of these are small offices with rooms that are 8x10), you could easily make $1000 or more from one contact -- well worth the $30 in food and paper plates! Bring your schedule along to book direct appointments, but also *collect* business cards from people you meet, and add them to your mailing list. If the common area is slow, walk around and see which doors are open and just take a minute to introduce yourself and drop off a brochure. (In the first years of my business, we leased space at two of these kinds of buildings, and would have people come around a couple of times a month.)

Check and see if there are any "business inventory" specialists in your town -- you know, the kind that count widgets and stuff. Contact them and exchange information -- you're likely to get some calls for *that* type of inventory service, and you'd appreciate *their* referrals for home inventory services or small businesses looking for "non-sale" inventories.

Finally, I'd second the thought that there are business networking meetings that meet at ALL hours of the day. And if there's not, YOU should start one! (Contact Business Networking International for details). I used to belong to one that met for one hour at 7 a.m. every Friday morning. I did it for about a year, and then I remembered that I'm *not* a morning person! Fortunately, by then, many of my other marketing efforts had kicked in.

("Who's In Your Network" handout compiled by Linsey Levine, MS)

Naming Your Home Inventory Service (HIS) Business

Like looking at your newborn for the first time, you want to make sure that the name you select for your business is a good one. This might actually be the hardest part of starting your Home Inventory Service (HIS) business, so here's some help.

There are some key considerations, of course -- like NOT choosing a name someone else already has, and not choosing a name too close to another business name (because the website you want will likely NOT be available). In fact, I hate to say it, but website name availability should probably be the most important part of your decision. Why? Well, see my other posts about the role your website plays in gaining visibility (and credibility) for your business. It is possible to overcome a good website name, but you'll spend more time and money making that happen than if you plan ahead and pick a really good business name with a really good domain name to match.

What you're ideally looking for is either a) a good "benefit" oriented name ("Accurate Home Inventory Services," or "Complete Home Inventory Services of [City]" or "Absolute Inventory Services") or b) A completely unrelated word that you will then "associate" with "Home Inventory Service" ("Apple Home Inventory Service" or "Dayspring Home Inventory Service") or c) a geographically-oriented name -- presuming you never want to franchise your business -- ("Nebraska Home Inventory Service" or "Tri-City Home Inventory Service" or "River City Home Inventory Service.")

Or, there's the "bandwagon" name -- in my case, that would be "Husker Home Inventory Service" because in Nebraska, there are literally *hundreds* of businesses with "Husker" in them (because of the University of Nebraska football team, the "Cornhuskers"). But I'm pretty sure most, if not all, of them are supposed to be paying royalties.

My best recommendation is [A], a descriptive name. A check of the thesaurus, and a couple of handy books I have called "Words That Sell" (and its companion "MORE Words That Sell" reveals some ideas:
Authentic, Peaceful, Serene, Complete, Comprehensive, Ultimate, Accessible, Distinguished, Acclaimed, Qualified, Ace, Professional, Awesome, Indispensable, Essential, Contemporary, Careful, Trusted, Ease, Shield, Shelter, Defense, Protect, Prevent, Rest Easy, Dependable, Content/Contents, Care/Caring, Compassion, Comfort, Contentment, Aspire, Acquire, Certainty, Documentation, Abiding (lasting), Abode (residence), All, Absolute (perfect), Abundance (plenty), Abundant (plentiful), Acclaim (praise), Accord (mutual understanding), Account (calculate), Accrue (add up), Actuate (put into motion), Acuity (sharpness), Acute (perceptive), Adduce (prove, show), Adroit (skilled), Advance, Advisory (report), Aerie (home), Third-Party Inventory Services, Accurate Home Inventory Services, Asset Inventory Consultants... the list goes on and on.

Normally, you'd also want to pick a name at the beginning of the alphabet, because that will show up early in online, alphabetized search results (say, in an online directory), or at the top of a category in a printed Yellow Pages book.

You decide. Just be sure to make sure the domain is available, and most important, PRACTICE saying your business name -- like you're answering the phone, or introducing yourself to a prospect in line at the grocery store.

A Professional Logo Shows You Are a Professional

Your logo is a visual representation of you and your business. It can signify the type of clients you want to attract, from an upscale, highly abstract logo to a more concrete, representative logo. What kind of logo you decide to go with will depend on your target audience, your geographic service area, and -- of course -- your personal taste. The logo is a graphical representation of you to your clients. For example, your logo should be so unique that when your client sees the logo apart from your business name, he or she should still recognize the design as being your logo. What if your Home Inventory Service is part of another business? You should *still* have a separate logo for the HIS business. It can be *similar* to your other business to help tie it in visually. Logos are designed to be placed on your business cards, letterheads, envelopes, mailing labels, forms, flyers, brochures, and windows and/or doors at your office. You can also have your logo made into window decals, stickers, signs, and press-on tattoos. Once you’ve created a logo that represents you, use it often to help establish your corporate identity.

Examples of interesting/unique logos include:
Captured on Camera
Legacy Home Inventory
Security Home Inventory
Pro Home Inventory
Taking Stock Residential Inventory (my personal favorite logo AND website).

Cornering the Market: "All THIS Business is Local"

One of the advantages of The Home Inventory Service (THIS) business is that you can create a local market presence. This offers extraordinary opportunities to grow a small business quickly, because it's a relatively new industry, and your local competitors are limited. Limiting your marketing and promotional efforts to a local area is also more affordable.

That's not the case in a lot of industries.

I come from a segment of the careers industry that is now relatively "mature." That is, the practitioners in it have been at it for 10 years or more, standards of practice have been established (there are four national professional associations, three national conferences annually, multiple codes of ethics, at least a dozen separate certifications one can earn, and a couple of "mega companies" with dozens of subcontractors). That industry has changed since I first joined it 11 years ago, because it used to be primarily local practitioners targeting local clients. But with the advent of the Internet, all business is *global AND local* -- suddenly you're competing with every other practitioner in the world ... at least in theory.

That's not the case with the home inventory service industry. Your physical presence in a customer's home is required to complete an inventory. As a result, you have "geographic dominance" -- with fewer than 500 businesses of this type in the U.S., you're most likely the only game in town. And with literally millions of prospects (likely tens or hundreds of thousands in each business' specific market area), the potential is largely untapped.

Honestly, the two biggest competitors any of us face is OUR CUSTOMERS (they could, in theory, do this inventory themselves) and LACK OF RECOGNITION by the market of OUR VERY EXISTENCE. It would actually be a *good* thing to have a couple of competitors within your town, or even within 50 miles ... because you'd be able to work together to raise the profile of the industry in your market. In a start-up business, you spend a LOT of time on marketing. In this industry, marketing primarily encompasses "prospect education." Why this needs to be done, how it's conducted, what information needs to be gathered, why you should hire someone to do it, what kind of credentials the service provider has to make sure it's done right, etc....

There are HUNDREDS of free and low-cost alternatives to a professional home inventory service out there (just google "Home Inventory Service") ... but there are also dozens (soon to be hundreds!) of successful home inventory service businesses out there. People WILL pay to have this service performed!

Have you ever encountered a prospective client who, upon learning of your service offerings, says, "Wow! That's a great idea!!" This is just one of a LOT of services -- dog walking, car detailing, house cleaning, resume writing, housepainting -- that CAN be performed by your prospective client, but he or she can't/won't/ or would prefer not to. Or they lack the perceived expertise to do it. The more we hone our skills and craft an expectation about what a thorough home inventory encompasses, the more customers we will have.

The best thing that can happen to The Home Inventory Service market is growth. Because with critical mass, the tipping point will be reached -- recognition of the industry AS an industry ... and with it, credibility from prospects and the media. You'll be able to spend less time educating clients, and more time servicing them. (Am I the only one who has noticed that "Home Inventory Service" isn't a Yellow Page category?) "Inventory Service" in the Yellow Pages encompasses not only home inventory service industry companies but also commercial inventory specialists. 10 years ago, there wasn't a listing for "Web Site Hosting Service" either.

Of course, with that comes more potential competition, but even if you conducted 2 inventories a day every week of the year, that's still only 700 inventories -- and I'm guessing that there are more than 10 times that many homes, apartment dwellers, and even small businesses in your area that are likely candidates for your services.

And those that are today's "pioneers" will be able to continue to draw customers over tomorrow's newbies, because they can point to their years of expertise in the business, commitment to continuing education and industry standards, and an extensive client list that is generating referrals and repeat business long into the future.

There is definitely a need for an open discussion about issues facing the industry and specific challenges, especially for start-ups. Nurture fledgling entrepreneurs in THIS industry, and they will help grow the industry ... to the benefit of us all.