How to Start a Live Scan Business: A Comprehensive Guide

Introduction

Live scan businesses provide digital fingerprinting services to individuals and organizations in need of background checks or criminal records. This type of business has become increasingly popular as more and more employers and organizations require such services. Starting a live scan business can be a lucrative venture, but it requires careful research and planning to ensure success.

Overview of Live Scan Businesses

Live scan businesses use specialized equipment to capture fingerprints digitally and submit them to state and federal databases for processing. The process is often used for employment screening and other purposes such as immigration applications and background checks for volunteer positions. Live scan businesses are typically located in convenient locations such as shopping centers and office buildings, making them easily accessible to customers.

Benefits of Starting a Live Scan Business

Starting a live scan business offers many benefits, including the potential for high profits. According to a recent survey by the National Insurance Crime Bureau, the average cost for a single live scan transaction is $50. With that in mind, entrepreneurs looking to capitalize on this growing industry could potentially earn a substantial income. Additionally, live scan businesses provide a much-needed service to their local communities, allowing customers to quickly and conveniently obtain the results they need.

Research Requirements for Starting a Live Scan Business

Before starting a live scan business, there are several important steps that must be taken to ensure success. Entrepreneurs should do their research to understand the regulations and security requirements associated with this type of business.

Identify Local Regulations

The first step in starting a live scan business is to identify any local regulations or laws that may apply. Each state, county, and city may have its own laws regarding the operation of a live scan business, so it is important to familiarize yourself with these laws before you begin. Additionally, you will need to determine if there are any special requirements for obtaining a business license in your area.

Understand Security Requirements

Due to the sensitive nature of the information collected by live scan businesses, it is essential to understand the security requirements associated with this type of business. The Federal Bureau of Investigation (FBI) and the Department of Justice (DOJ) both have strict guidelines regarding the storage and transmission of digital fingerprints. Understanding these guidelines is critical to ensuring the security of your customers’ data.

Research Equipment Needs

In order to successfully operate a live scan business, you will need to invest in the right equipment. You will need to research the various types of equipment available and decide which type best suits your needs. The most common type of equipment used in live scan businesses is a Livescan device, which is a specialized scanner that captures fingerprints digitally. Additionally, you will need to purchase a computer and software to store and transmit the data.

Outline a Business Plan for Your Live Scan Business

Once you have done your research and identified the necessary equipment, it is time to create a business plan. A business plan is an essential tool for any entrepreneur and provides a roadmap for achieving your goals. It should include an outline of your goals and objectives, an estimation of costs and revenue, and a detailed description of operational procedures. Additionally, it should include a marketing plan that outlines how you will promote and advertise your business.

Set Goals and Objectives

The first step in creating a business plan is to set clear goals and objectives. These should include short-term goals such as increasing customer base or reducing operating costs, as well as long-term goals such as expanding into new markets. Setting goals and objectives will help you stay focused and motivated throughout the process of starting your business.

Estimate Costs and Revenue

Once you have established your goals and objectives, it is important to estimate your costs and revenue. This will help you determine whether or not your business is financially viable. You should include all of your expected expenses, such as rent, payroll, and equipment costs, as well as potential revenue sources, such as fees for services rendered.

Develop Operational Procedures

The next step in creating a business plan is to develop operational procedures. These procedures should outline how you will handle customer requests, process payments, manage employee schedules, and maintain records. Establishing operational procedures will help ensure that your business runs smoothly and efficiently.

Secure Necessary Licenses and Permits

Once you have created a business plan, the next step is to secure the necessary licenses and permits. Depending on your location, you may need to obtain a business license, a vendor’s license, or a permit to operate a live scan business. Additionally, you may need to register with the FBI and DOJ, as well as your local law enforcement agency.

Determine Licensing Requirements

The first step in securing the necessary licenses and permits is to determine the specific requirements in your area. You should contact your local government offices to learn about the specific licenses and permits required in your area. Additionally, you should check with state and federal agencies to make sure you are in compliance with any applicable laws or regulations.

Submit Applications

Once you have determined the licensing requirements, you can begin the application process. You will need to submit all of the necessary paperwork and documents to the appropriate agencies. Additionally, you may need to pay certain fees, such as registration fees or application fees. After you have submitted your applications, it is important to follow up to ensure that your application is being processed.

Invest in Necessary Equipment

Once you have secured the necessary licenses and permits, it is time to invest in the equipment you need to run your business. You will need to research the different types of equipment available and decide which type best suits your needs. Additionally, you should consider factors such as cost, durability, and ease of use when selecting your equipment.

Review Equipment Options

The first step in investing in equipment is to review the different options available. You should compare the features and benefits of each option to determine which type of equipment best meets your needs. Additionally, you should consider factors such as price, warranty coverage, and customer support when making your decision.

Purchase Recommended Equipment

After you have reviewed the available equipment, you can purchase the recommended items. When purchasing equipment, it is important to buy from reputable vendors who offer quality products at competitive prices. Additionally, you should purchase any necessary accessories, such as cables, adapters, and software.

Establish Partnerships with Local Law Enforcement Agencies

Once you have invested in the necessary equipment, the next step is to establish partnerships with local law enforcement agencies. These agencies often require the services of live scan businesses and can provide a steady source of customers. Additionally, partnering with local law enforcement agencies can help build credibility for your business.

Seek Out Agencies Requiring Live Scan Services

The first step in establishing partnerships with local law enforcement agencies is to seek out agencies that require live scan services. You can find these agencies by researching online or contacting your local government offices. Additionally, you should attend networking events to introduce yourself and your business to potential partners.

Contact Agencies to Discuss Potential Partnerships

Once you have identified potential partners, you should contact them to discuss potential partnerships. You should explain the services you offer and discuss the terms of the partnership. Additionally, you should inquire about any additional requirements that may be necessary for the partnership to be successful.

Develop Pricing Model for Your Services

Once you have established partnerships with local law enforcement agencies, you should develop a pricing model for your services. This will allow you to set competitive rates and maximize your profits. Additionally, it will give potential customers a better understanding of your services and what they can expect to pay.

Analyze Market Rates

The first step in developing a pricing model is to analyze the market rates for similar services. You should research the rates of your competitors and use this information to determine a fair price for your services. Additionally, you should consider any discounts or incentives you may offer to attract customers.

Set Competitive Prices

Once you have determined a fair price for your services, you should set competitive prices. You should consider factors such as the quality of your services, the level of customer service you provide, and the convenience of your location when setting your prices. Additionally, you should keep track of the rates offered by your competitors to ensure that your prices remain competitive.

Market Live Scan Business to Potential Customers

The final step in starting a live scan business is to market your services to potential customers. You should create an online presence, utilize social media platforms, and take advantage of networking opportunities. Additionally, you should create promotional materials such as brochures, flyers, and business cards to help spread the word about your business.

Create an Online Presence

The first step in marketing your live scan business is to create an online presence. You should create a website that showcases your services and allows potential customers to easily contact you. Additionally, you should create social media accounts to help spread the word about your business.

Utilize Social Media Platforms

Once you have created an online presence, you should utilize social media platforms to market your business. You should post regularly about your services and share content related to the industry. Additionally, you should engage with potential customers to build relationships and increase brand awareness.

Take Advantage of Networking Opportunities

In addition to utilizing social media platforms, you should also take advantage of networking opportunities. You should attend industry events and join professional associations to meet potential customers and build relationships. Additionally, you should participate in local business expos and trade shows to showcase your services to a larger audience.

Conclusion

Starting a live scan business can be a lucrative venture and a great way to provide a valuable service to your community. However, it is important to do your research and create a comprehensive business plan before getting started. Additionally, you should secure the necessary licenses and permits, invest in the right equipment, establish partnerships with local law enforcement agencies, develop a pricing model, and market your business to potential customers. By following these steps, you can ensure the success of your live scan business.