One of the quickest ways to start a foreclosure hoarder help business is to 1) decide you want it, 2) do a little planning, 3) and jump right in. If you think about it too long, you’ll scare yourself to death and will get stuck in the thinking phase. But with a business like foreclosure cleanup, the industry is wide open. All the numbers point to a booming enterprise for 2010 and beyond.
Top Economists’ Predictions
With top economists labeling the rise of foreclosures among prime borrowers the “third wave of trouble,” businesses offering foreclosure cleanup services are poised for tremendous growth. In 2010 alone, well over four million homeowners will receive foreclosure notices; over half of those will go through foreclosure.
Further still, $2.5 trillion in risky loans are expected to reset in 2010 and 2011. It’s predicted that many of these loans were given to people who couldn’t afford the payments from the outset, which will make for an even more congested foreclosure market.
Foreclosure cleanup is the perfect opportunity to start a business, and, with a little planning, your doors can be open in a few weeks, ready to capitalize while offering a much-needed service. And, it’s a business that can be started part-time while still working a job.
Planning Your Foreclosure Cleanup Business
Decide to take two weeks to plan your foreclosure cleanup business. Write a business plan (outline format is fine with detailed notes) so you have a direction, a path, for your business as it relates to services, pricing, equipment and marketing.
Figure Out Which Services to Offer
During your two week business planning stage, you will figure out which services you will start out with. Foreclosure cleanup services can run the gamut. You can offer everything from debris removal, cleaning, lawn care, pressure washing, gutter cleaning, interior cleaning, painting, winterization, window and door boarding and replacement, locksmith services, inspections, and more. If you’re not careful, you’ll be all over the place, so you’ll need to be really focused in choosing the services you want to start out with in your new business.
TIP: Keep it simple in the beginning. Start by offering only those services you know you can handle in-house — and only those services for which minimum equipment purchases are needed.
Setting Your Pricing
After you create a services list, do a little research and set up your pricing guidelines. These will change often based on various factors as jobs come in, but have basic pricing guidelines already setup before you open your doors. Call “like” services to see what they are charging for, for example, lawn maintenance, debris removal, gutter cleaning, etc. Set your prices competitively based on what they are charging, the job factors, what you are putting out, and how much you want to clear off the job.
Getting Your Foreclosure Cleanup Business License
Make sure you call your County Clerk’s office to see what kind of licensing you will need and register your business formally. Go to the IRS’ website and sign up for an Employer Identification Number (EIN), also known as a Federal Tax Identification Number, so you are right with Uncle Sam’s reporting requirements once the money starts to roll in.
