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Old 06-03-2013, 10:08 PM
 
Location: Metro Detroit, Michigan
29,823 posts, read 24,913,395 times
Reputation: 28520

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Hello. I have noticed Chicago has a growing problem with bedbugs. I have spent hours and weeks studying this problem, and have actually had a great deal of success helping folks get rid of them. I'm looking to take my small operation to the next level. I currently have about $700 invested in my little operation, which has paid for itself more than a few times over. I'm just wondering if anyone could give me some advice on how to grow this operation...

Currently, this is a one man gig and I only deal with bedbugs. Business is booming. I have a full time job, and I turn down work all the time. I could hire someone, but the expenses involved are astronomical. I would have to raise my rates. I'm undercutting the big guys by over 50%, and also guaranteeing up to 3 treatments for the price of one visit.

I'm also seeing a lot of opportunity handling larger scale work, but that would involve much more investment. A van would be very helpful, as well as steam cleaners, heavy duty foggers, things of that nature. There are also dogs which have been trained to sniff these little guys out. I would love to have a dog, but I imagine these guys can run into the thousands. I have been making contraptions to catch the bugs, and this is a time consuming process in of itself. I would greatly benefit from making 50-100 at a time (typical visit requires about 10-12). I can continue making them myself, but that means I have to turn down work.

I guess I'm trying to figure out what I should be focusing on. As a one man op, I'm doing ok, but certainly not getting rich. I see potential for growth, but that involves risk. I'm financially secure enough to take on some risk, but sort of afraid of taking on too much risk.

Just wondering what others think I should do at this point. I would also like to learn about how to eradicate other pests like cockroaches, mice, ants, etc. I used to have ants in the house I rented before moving here, but I was never able to get rid of them. Any helpful resources and tips would be much appreciated. Thanks!
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Old 06-03-2013, 10:54 PM
 
17,874 posts, read 15,952,870 times
Reputation: 11660
Are you already a licensed exterminator? If you can undercut your competitors by that much, you have a real chance at being successful. But are there also many small operations like yourself that can offer the same rates? I have heard the bedbug sniffing dogs are hit or miss.
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Old 06-04-2013, 02:43 AM
 
Location: Copenhagen, Denmark
10,930 posts, read 11,727,236 times
Reputation: 13170
I'm not sure what the dogs cost or how easy they are to train. There are many hits if you google on "bedbug dogs"...etc. Such as:

http://www.nytimes.com/2010/03/11/ga...anted=all&_r=0

It might also be of interest for you to read up on the effects of global warming on the geographic distribution pests. Many are moving north and some are very noxious, like bedbugs. That may help to sharpen your focus.

And one final thought. Some small businessmen tend to average their costs when making investment decisions. Don't do it. You'll over-invest. Use your marginal cost.

Good luck
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Old 06-04-2013, 03:48 PM
 
1,658 posts, read 2,695,105 times
Reputation: 2285
Quote:
Originally Posted by andywire View Post
Just wondering what others think I should do at this point. I would also like to learn about how to eradicate other pests like cockroaches, mice, ants, etc. I used to have ants in the house I rented before moving here, but I was never able to get rid of them. Any helpful resources and tips would be much appreciated. Thanks!

You're in a Catch 22 situation on several levels. You don't have the time to expand your business, and you can't afford to hire anyone without having to raise your rates. It's easy to undercut your competitors when you you don't have expenses like license fees, insurance, vehicle costs, payroll, etc. BTW, you may already be in violation of the Illinois Structural Pest Control Act, Section 3.09 **

Should you decide to follow through with eradicating other pests, you'll need a business license issued by the Illinois Structural Pest Control Board (Catch 22 #2). However, on the application you'll need to identify a licensed technician who will be responsible for the handling and application of the restricted use pesticides. If you apply for a technician's license you will need to identify the firm that employs you. You could purchase an established business, but you probably don't have the necessary funds for that.

Since your time for expanding your business is very limited, you are in another Catch 22 situation: continue on with business as usual, or quit your regular job. I think that you should quit your regular job if you are serious about expanding your business. Part-time pest control doesn't work. Your clients may need your services when you are unavailable, and they usually have problems that require immediate solutions.

One method is to enter the industry on the ground floor, working as a technician. Your company will pay for your training and you will acquire invaluable experience. When you're ready to branch out on your own, apply for a business license, listing yourself as the qualifying technician. Of course, without a sufficient advertising budget, you might starve.

You didn't say anything about how you are compensated at your present job, and whether or not you enjoy working there. Perhaps you will continue on with your weekend business and its accompanying rewards. Although you seem to be at a crossroads now, you are not under any pressure to make a quick decision, so take your time and investigate all of the paths open to you.
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Old 06-04-2013, 10:00 PM
 
Location: Metro Detroit, Michigan
29,823 posts, read 24,913,395 times
Reputation: 28520
Quote:
Originally Posted by JustPassinThru View Post
You're in a Catch 22 situation on several levels. You don't have the time to expand your business, and you can't afford to hire anyone without having to raise your rates. It's easy to undercut your competitors when you you don't have expenses like license fees, insurance, vehicle costs, payroll, etc. BTW, you may already be in violation of the Illinois Structural Pest Control Act, Section 3.09 **

Should you decide to follow through with eradicating other pests, you'll need a business license issued by the Illinois Structural Pest Control Board (Catch 22 #2). However, on the application you'll need to identify a licensed technician who will be responsible for the handling and application of the restricted use pesticides. If you apply for a technician's license you will need to identify the firm that employs you. You could purchase an established business, but you probably don't have the necessary funds for that.

Since your time for expanding your business is very limited, you are in another Catch 22 situation: continue on with business as usual, or quit your regular job. I think that you should quit your regular job if you are serious about expanding your business. Part-time pest control doesn't work. Your clients may need your services when you are unavailable, and they usually have problems that require immediate solutions.

One method is to enter the industry on the ground floor, working as a technician. Your company will pay for your training and you will acquire invaluable experience. When you're ready to branch out on your own, apply for a business license, listing yourself as the qualifying technician. Of course, without a sufficient advertising budget, you might starve.

You didn't say anything about how you are compensated at your present job, and whether or not you enjoy working there. Perhaps you will continue on with your weekend business and its accompanying rewards. Although you seem to be at a crossroads now, you are not under any pressure to make a quick decision, so take your time and investigate all of the paths open to you.
Pretty well sums it up. I accept check or money, and pay my taxes diligently. I can undercut my competition because this is just a side gig with very little overhead. Most of my techniques are slower to act, but more thorough and extremely safe (all natural actually). I don't use harsh or potentially dangerous products or techniques. You could actually eat the stuff I use. If the job requires something more, I tell the customer they need to contact a professional who is qualified to use the potentially dangerous stuff.

My full time job is the bulk of my income obviously, and the one I am most proficient with. It pays the bills and would be hard to give up because I enjoy that too. I'm also at a company I really enjoy working for, which is rare in the private sector these days. If I had to start a business though, I would go for pest control. Less competition, less overhead and all local.

I'm not sure what a pest control business would cost. I was planning to buy a house this year, but I could hold off on those plans and look to buy a business. I have about 60K that I could risk, but I'm not sure exactly what that would buy.

The only way I could work as a technician is part time, and I would likely not be able to make up the investment for my employer. Alternatively, I could pay for the certifications myself and work part time.

Would it be possible to hire a part time licensed technician to fit the requirement for the application of the restricted use pesticides? Employees in of themselves are also a PITA. It's not that I can't afford it, it's just an expense I was hoping to avoid if possible. Maybe I could find someone looking to pick up extra hours on the side?

As for advertising, word of mouth has been the best route. I'm thinking of posting fliers if I decide to grow. I don't know what an advertising budget should look like, but I have a fair bit saved up that I wouldn't mind investing in a legitimate business. I also have excellent credit which may help to secure a loan. I do love working for myself, so it would be worth it in the long run. I also love satisfied customers This just seems like an opportunity worth investing in. Bugs don't gross me out, and there seems to be a booming market for the service around here.
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Old 06-05-2013, 04:00 AM
 
Location: Pennsylvania
5,725 posts, read 11,717,779 times
Reputation: 9829
Any chance you could 'sell' your idea to other individuals who would pay you a fee to use your system. They wouldn't be employees, but rather individual contractors, almost like franchisees. Then you could still do as much or little direct work as you want but pull in extra income.
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Old 06-05-2013, 03:17 PM
 
1,658 posts, read 2,695,105 times
Reputation: 2285
Quote:
Originally Posted by andywire View Post
Pretty well sums it up. I accept check or money, and pay my taxes diligently.
Since you mentioned taxes, check with your tax preparer to make sure that you are taking advantage of all the deductions that you are entitled to use. Be sure to maintain a separate file for your business-related expenses. You should keep a daily log of your vehicle use, just in case that deduction is questioned. It's easier when you have a work vehicle and a vehicle for personal use.

I'm a long way from Chicago, but you may be required to have a city business license. However, a lot of folks are able to remain under the radar until they advertise in the YP or put signage on a vehicle. You should contact the Ill. SPCB and explain the type of work that you are thinking about performing and learn if that would fall under its jurisdiction.

Quote:
I was planning to buy a house this year, but I could hold off on those plans and look to buy a business. I have about 60K that I could risk, but I'm not sure exactly what that would buy.
It might be a good idea to stick with your plan of buying a house, as the market has turned around and interest rates are rising. Determine your break-even point to see how long you may have to live in it/rent it out. You could purchase a small PC business for that amount, but you're not ready yet to operate one, your current successful enterprise notwithstanding.
Quote:
The only way I could work as a technician is part time, and I would likely not be able to make up the investment for my employer. Alternatively, I could pay for the certifications myself and work part time.
This might work for you. Contact the large PC companies that have night routes (for servicing restaurants and businesses) and see if they provide in-house training or would pay for your training. Perhaps you could work part time as sick/vacation relief. Since your weekends are set aside for your bedbug work, you would have to work nights, hopefully for short periods. It would be very difficult to maintain two full-time jobs, but I know two people that started out that way and they are muti-millionares now.
Quote:
Would it be possible to hire a part time licensed technician to fit the requirement for the application of the restricted use pesticides? Employees in of themselves are also a PITA. It's not that I can't afford it, it's just an expense I was hoping to avoid if possible. Maybe I could find someone looking to pick up extra hours on the side?
An excellent idea, except for the part-time part. You could hire an individual to work part-time in your BB business, thereby growing your business. Sure, it can be a PITA to have employees, but how are you to expand otherwise? But, hiring a licensed tech part-time gets you into deeper waters. Although dual employment is probably allowed, the state may require insurance, an indemnity bond, office registration fees, and more.

Quote:
This just seems like an opportunity worth investing in. Bugs don't gross me out, and there seems to be a booming market for the service around here.
You will be best served by sticking with what you know - BBs - and expanding in that area. Later you can add more services when you are better prepared financially and have gained more knowledge.
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Old 06-05-2013, 10:14 PM
 
Location: Metro Detroit, Michigan
29,823 posts, read 24,913,395 times
Reputation: 28520
Quote:
Originally Posted by JustPassinThru View Post
This might work for you. Contact the large PC companies that have night routes (for servicing restaurants and businesses) and see if they provide in-house training or would pay for your training. Perhaps you could work part time as sick/vacation relief. Since your weekends are set aside for your bedbug work, you would have to work nights, hopefully for short periods. It would be very difficult to maintain two full-time jobs, but I know two people that started out that way and they are muti-millionares now.
Actually, it looks like I'm in luck with the schedule. I work for a job shop and we scored a big ticket item that will run well into next year. The boss wants someone to work in the afternoon and through the night, and I might be able to talk them into letting me come in later. This means I will have the mornings and some of the afternoon to work on my business.

Strange luck indeed
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