Any advice for a new company trying to get started?

Larkpropertyimprovements said:

Hello!

My name is LeAnna and I’m trying to start a property preservation business with my partner Brandon who has done this work for over 10 years for his parents company. I’d really like to get my LLC this week, but I had a business mentor meeting with someone from the SBA and it didn’t go well. I don’t know all the lingo exactly yet… I’m looking to take some online courses to help me there. I have done some of the processing work for his parents company but I would appreciate any advice and resources you may be able to share!

I’m open to any and all advice but my main questions pertain to:

1.) Insurance needs and recommendations

2.) Educational or certification opportunities and recommended companies (I’ve looked at the inspection course through mortgage field services and the inspections+ contractor course through NAMFS academy). I have done some work order processing but only for Resipro so any courses that could help me with that would be amazing.

3.) Regional and national companies to work for? I am looking to start regionally to start, with Brandon being the contractor in NY. Any companies yall liked? What do you look for when looking for new clients?

I know these are a lot of questions!! Any tips on any part of them would be super helpful and appreciated.

Thanks so much,
LeAnna

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Hi LeAnna - Welcome to Preservation Talk!

First and foremost - You've chosen a very risky industry to be starting a new business in. The players in this industry are well known for taking advantage of and exploiting noobs who don't know any better. One of the smartest things you can do is what you're doing here - Asking questions & learning all you can rather than thinking you know it all already.

I have been in property preservation for 16 years. I have a lot of experience, but I'm definitely still learning. Here's some quick answers, hope they can help you out:

1. Insurance needs are best discussed with your insurance agent. I carry a general liability policy with riders that cover all the classes of work I might perform at any given property, and I make sure my minimums meet or exceed my clients expectations. Some clients use to require Errors & Omissions insurance and I paid for that policy for multiple years. My suggestion to you is simply steer clear of any companies that require E&O, working for them is not worth the other hassles that come with a company like that.

2. There are zero educational or certification programs that are going to prepare you for this industry. Your best bet is to go to work for someone in the business and learn from them, or find a mentor that can advise you on a day to day basis.

3. There are no regional or national companies that I can recommend to you in good conscience. I have completed work for a vast majority of them over the years and have had some good, some not so good, and some terribly bad experiences. I will say that most of my good experiences were a result of getting to know and solely dealing with only 1 or 2 people within a company that have the ability to negotiate and power to then sign my contracts based on those negotiations.

Larkpropertyimprovements said:

Hello!

My name is LeAnna and I’m trying to start a property preservation business with my partner Brandon who has done this work for over 10 years for his parents company. I’d really like to get my LLC this week, but I had a business mentor meeting with someone from the SBA and it didn’t go well. I don’t know all the lingo exactly yet… I’m looking to take some online courses to help me there. I have done some of the processing work for his parents company but I would appreciate any advice and resources you may be able to share!

I’m open to any and all advice but my main questions pertain to:

1.) Insurance needs and recommendations

2.) Educational or certification opportunities and recommended companies (I’ve looked at the inspection course through mortgage field services and the inspections+ contractor course through NAMFS academy). I have done some work order processing but only for Resipro so any courses that could help me with that would be amazing.

3.) Regional and national companies to work for? I am looking to start regionally to start, with Brandon being the contractor in NY. Any companies yall liked? What do you look for when looking for new clients?

I know these are a lot of questions!! Any tips on any part of them would be super helpful and appreciated.

Thanks so much,
LeAnna

Click to expand...

Hello LeAnna! Congratulations on your plan to start a property preservation business. It's great that you're seeking advice and resources to help you along the way. While I can provide some general guidance, it's important to consult with a lawyer or legal professional who specializes in business law for specific advice tailored to your situation. With that said, here are some suggestions regarding your main questions:

1. Insurance needs and recommendations: Insurance is crucial for protecting your business from potential risks and liabilities. Consult with an insurance agent or broker who specializes in commercial insurance to discuss your specific business needs. They can guide you on the types of insurance policies you may require, such as general liability insurance, professional liability insurance, property insurance, and workers' compensation insurance.
2. Educational or certification opportunities: Since you mentioned wanting to familiarize yourself with the lingo and enhance your skills, taking online courses is a great idea. The inspection course through mortgage field services and the inspections+ contractor course through NAMFS academy seem like good options. Additionally, consider looking for courses or certifications related to business management, small business entrepreneurship, and property preservation. Websites like Coursera, Udemy, and LinkedIn Learning offer a variety of online courses on these topics.
3. Regional and national companies to work for: Starting regionally is a sensible approach, and having Brandon as the contractor in NY can help establish a local presence. Research property preservation companies in your region and reach out to them to explore potential partnerships or subcontracting opportunities. Some national property preservation companies you may want to consider in the future include Safeguard Properties, MCS Mortgage Contracting Services, and Five Brothers.

When looking for new clients, consider factors such as their reputation, payment terms, volume of work, and communication practices. You'll want to ensure they align with your business values and can provide a steady stream of work.
Remember, it's essential to consult with a lawyer or legal professional to ensure compliance with local regulations, contracts, and any specific legal requirements related to property preservation businesses in your area. They can guide you through the process of forming an LLC and provide advice tailored to your circumstances. Best of luck with your property preservation business!