Learn how to succeed as a private investigator, creating a sustainable business that will provide well for you and your family far into the future. Success is loosely defined by most people as being directly related to finance. Of course, you may define it differently, but for the purposes of this post, we define success as the ability to make a living as a PI and build your business year over year until it reaches an optimal level of income, as well as work/life balance.
This post provides some important guidance on how to succeed as a private detective. If you want to build your business as a lasting asset, then this post is perfectly suited for your research needs.
How to Succeed as Private Investigator by Niche
There are so many investigative niches to specialize in, but one thing remains true of all of them… Finding a focus is one of the best ways of achieving your initial success as an investigator. Gain niche expertise in particular case assignments and become the “go-to” person for clients who require these specific services.
Of course, you will want to find a niche that suits your training, skills and circumstances. You will also want to make sure that there is a steady need for investigative services in the niche and that clients will be willing to pay enough to make your work worthwhile. Some niches are far more profitable than others, so be sure to choose your niche carefully.
Of course, you may be able to offer general investigation services right from day 1 and still become successful, but this path is more difficult, features more competition and might take longer to become established than choosing to focus on specific case profiles. For reference, I only offered services to defense counsel as a trial preparation investigator. This was ALL I did for more than 12 years. I became known for my fine work in this capacity and became an in-demand asset for many great attorneys when preparing cases for trial or when seeking judgments, mostly on insurance claims related to vehicular, industrial and general workplace accidents.
How to Succeed as Private Detective in Business Ventures
Being a good investigator with a niche focus is just part of your success equation. You must also understand general business principles and the specific business principles that relate to your niche focus. Before you even go into business, be absolutely sure to be fully licensed, bonded and carry full business insurance, as required by law in your area.
Now that you are ready to go, what can you do to ensure your success? Here are some tips to get you started:
Carefully consider budget for “unnecessary expenses”. Most investigators can set up a home office, since an actual office space is largely unnecessary, especially for new businesses. You do not need to entertain clients at an office, so if you can save money and work from home, then you are off to a great start! I ran my business this way from day 1 until the day I retired.
Be sure to understand the tax code at federal and state levels. There are countless business deductions that are available to you. Hire a great tax pro and set them to work finding all of these loopholes to keep more of the money you earn. Once you are confident in understanding how these deductions work, you can even take over the tax preparation burden yourself if you like in the years to come.
Make tons of great networking connections! Always serve your clients to the best of your ability. Referrals and recommendations will get you the majority of your work and earn you the majority of your income. This is so important that I wrote a dedicated essay on the subject of marketing your investigation business.
How to Succeed as Private Investigator and Cash Out
Building a legitimate business with proper record keeping, assets and a client list will give you the option of selling the company once you decide to retire or move on to something new. The better you can grow your business, the more money you will be able to sell it for when the time is right. If you do it well, your business will become the perfect retirement plan, providing money for you for the rest of your life.
To this end, learn how to document your income and expenses (if you have been doing your taxes correctly, this is already done!). If you can show year over year growth, your business will be worth more than if the income trails off. Therefore, you might want to sell it while it is still a top earner, rather than winding down and working part time for the last 5 years or so of your involvement. This can really lower the sale value of your company.
Best of luck and be sure to read all of our posts covering the private investigation business! Everything you need is right here!