Protect Your Business When evaluating the above options, it is advisable to also protect your background- screening cmpany with the appropriate business insurance coverages that can address your most pressing risks. Tis may require adding or expanding your existing coverages in the following areas: • General Liability Insurance • Property Insurance • Business Owner’s Policy • Workers’ Compensation Insurance • Errors & Omissions Insurance • Cyber Liability Insurance • Umbrella Insurance
Legal Compliance For anyone considering adding background- screening solutions, first consider how you intend to keep abreast of the complex and ever-changing legal landscape. Te number of laws governing the
background-screening industry are numerous and constantly growing. Te central federal law that governs background-screening providers is the Fair Credit Reporting Act, which all background-screening firms should know and understand. According to Wikipedia:
Te Fair Credit Reporting Act (FCR), 15 U.S.C. § 1681, is U.S. Federal Government legislation enacted to promote the accuracy, fairness, and privacy of consumer information contained in the files of consumer reporting agencies. It was intended to protect consumers from the willful and/or negligent inclusion of inaccurate information in their credit reports. To that end, the FCR regulates the collection, dissemination, and use of consumer information, including consumer credit information. . . . It was originally passed in 1970 and is enforced by the U.S. Federal Trade Commission, the Consumer Financial Protection Bureau, and private litigants.
16 datia focus
Running a successful venture requires
knowledge of federal, state, and local laws in all the jurisdictions you operate. Te number of state and local laws continues to grow and multiply and requires background-screening firms to stay abreast and informed to properly steer clients in the right direction.
National Association of Professional Background Screeners (NAPBS)
Like many industries, a national association was formed many years ago, called the National Association of Professional Background Screeners. Te organization offers a wide range of information and benefits to its members. Te association provides access to
background-screening resources, legislative updates, webinars, conferences, and a host of other essential items to its members.
Other Considerations Some other factors that one should consider before entering this industry include, but are not limited to: • Looking at the existing competitors to understand the market
• Determining the investment (financial, personnel, time, etc.) you wish to commit
• Considering the growth prospects available with your current client base
• Examining the growth and expansion possibilities this will open up to your business
• Determining a scope of services to launch with, versus those to add later
• Understanding the industries you wish to serve, and learning regulatory requirements based on positions being screened for
Marketing Strategies Creating a solid marketing strategy can be the difference between success and failure. Creating a differentiation strategy, while understanding the pricing, quality, and timeliness requirements of the industry, are key factors to also consider.
Your best marketing will be word-of- mouth referrals from satisfied customers. As you build your brand and business, some tips to help accelerate growth are: • Set and meet/exceed customer expectations
• Nail the first impression • Add value to your customers • Build and keep customer loyalty • Communicate and listen to your customers • Keep your eyes and ears open to external factors and, when appropriate, pivot to stay ahead
• Know your strengths, and put solutions into place for your weaknesses • Create an online presence
Final Note Tere is a lot of competition in the background-screening space, but for those that are taking care of their customers, staying abreast of regulatory changes and impacts, and delivering on the promises it makes, the opportunities are endless. If you decide to expand your services, be
careful to know those you are partnering with or sharing your plans with as background-screening firms are like any other business, with their own share of good and bad players. Do your homework upfront so that you can Do It Right. ❚
Scott G. Galing is the CEO of Executive Improvement Group, LLC, and works with business owners and entrepreneurs in taking their companies to the next level.
He is an expert in ISO 9001 implementations and holds his Six Sigma certification. He is a 20+ year expert in the background screen- ing, occupational health screening, and human resources areas. He has extensive experience helping businesses expand their product and service lines and improving their bottom line. He also is involved in Do It Right Screening, LLC. He invites you to connect with him through LinkedIn, or you can email him at
scott@doitrightscreening.com.
spring 2019
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