How to Start a Third Party Verification Business v2

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					How to Start a Third-Party Verification Business

Third-party verification companies offer an important service to employers. Verification
companies complete extensive background checks on employment candidates to make sure that
each candidate fits the company’s requirements for the position. The more sensitive the job
expectations, the more carefully the company needs to verify the potential employee’s
background. Background checks typically include such elements as driving history and a
criminal background search, as well as credit and job history and even fingerprinting.

Supplies Needed:

Business license
Computer
Secure internet access

Instructions:

Step 1: Familiarize yourself with your state’s regulations for third-party verification companies.
Contact the state insurance regulation office for more information. All states must comply with
the federal Fair Credit Reporting Act for reviewing employee credit history. Individual states
might also have separate rules regarding the types of verification that you can do for certain
industries. Overstepping these regulations can be a violation of individual privacy and can result
in a lawsuit against you and the employer.

Step 2: Purchase the verification software that you will need to run your company. Verification
software compiles data from a variety of sources, including public records and credit history
reports. Available verification software includes Accio Data and Personnel Automated Screening
Software, or PASS. Expect to pay for the initial software – around $1500 – and then to pay for a
monthly usage fee, anywhere from $200 to $500 or more.

Step 3: Focus your business on a specific area. In other words, advertise your services to certain
types of employers: day care agencies, health care agencies, nursing homes, banks, and so forth.
By specifying the industry, you can establish yourself as an expert in verification for these types
of businesses and also narrow the searches that you have to do.

Step 4: Join a professional organization, such as the National Association of Professional
Background Screeners. Professional organizations can keep you up to date with changes in
software and legal requirements, and they can also help you in creating a network of contacts for
expanding your business.

Step 5: Advertise your business by marketing your services within your chosen industry. Offer to
provide employers with a free demonstration, or prepare a free seminar to show employers about
the significance of employee verification. Provide free workshops to employers as well as
employees to show them they type of information that verification companies can locate and the
need for everyone to be familiar with what is in his or her records.

Tips and Warnings:

Be sure to have a secure internet line in order to complete your research and verification. An
insecure line can result in confidential information being leaked – a breach of individual privacy
and a risk of a lawsuit.

References:

http://www.entrepreneur.com/startingabusiness/businessideas/article170804.html

				
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posted:9/22/2010
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