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NHWA Official Blog

Stay up to date with the National Home Watch Association and the Home Watch Industry.

Friday, December 16, 2011

Why are some Home Watch businesses failing?

Greetings and Happy Holidays!

The NHWA sent out a mailing to 250 Home Watch businesses last week. They were sent to companies that we have contacted in the past about possible membership. I know that a great number of those who received the mailer visited the site afterwards. I have gotten responses from some, nothing from others and, unfortunately, some "return to sender" (approximately 6%). The return to senders are disappointing for a few reasons. Why did these businesses fail? Poor planning and management? Sub-par marketing? Shoddy service? Sadly, we will never know. Of course the question becomes: "How can these closings affect my company?" Huh? What could this have to do with my company? Think about it:  based on the quality of work they performed and the way the company closed down affects the reputation of Home Watch in general. And that can affect your company big time! If the failed company didn't live up to their clients' expectations and left them in the lurch, you'd better believe that they have lost confidence in our industry. I have received a few communications from folks this has happened to. The problem is that there are no accredited companies in those areas. When we get inquiries from clients looking for an NHWA member and there are none in their area, we always reach out to any local HW company we can find. Some of you may have even heard from us.

Getting back to possible reasons for these companies failing might certainly be:
  • Lack of a support system
  • Failure to be able to get good advice
  • Throwing good money after bad in areas like marketing or products that they thought made sense at the time
  • Not adapting to obvious changes in their market
  • Bad branding
  • Lack of networking
  • Insurance troubles
  • Less than adequate service
The possible reasons are many. The truth is that we won't really ever know about those particular businesses, because they never shared the reasons with us. Bottom line: Sharing information is good. It strengthens your foundation and maybe, just maybe, keeps you from wasting money and time on an idea that has been tried in other areas. Maybe it worked after someone tried this, or we tried this, this and this, and it didn't work. What about learning of cost-saving moves specifically for HW businesses? With the challenges facing all small businesses today, doesn't it make sense to try to increase your chances, rather than decrease them?
I will assure you that becoming an NHWA Member can only help your company. Unless, of course, you wouldn't agree to maintain high ethics and standards. Or choose not to carry proper insurance. In that case, your business would never earn accreditation with the NHWA.

Much success,

Jack

Tuesday, December 6, 2011

Goals for the NHWA

Greetings and salutations to all.

As 2011 winds down, we need to look ahead to the challenges and obstacles facing our industry. Speaking with Members from all over the United States, I am constantly reminded of why the NHWA was formed: To raise standards in the Home Watch industry; to educate the public as to what Home Watch is; and to protect the public from unscrupulous and un- or underinsured companies claiming to be Home Watch professionals. Let's face it ... sooner or later, someone doing Home Watch will mess up and give our industry a black eye. An uninsured service will goof and be liable for damages and not have the means to make things right. As quickly as we (the industry) are growing, we will eventually be scrutinized by some government agency who will look to regulate us.

The NHWA has been researching NAICS codes. These codes are assigned by the U.S. Census Bureau to businesses and industries categorizing what they make or what services they perform. Because our services do not fall into one category, we don't have our own code. Why is this important? Well, for one thing, it explains the disparity in our insurance premiums and, in certain circumstances, in our ability to procure insurance at all. Did you have to jump through hoops when you were starting out? Did you know that a majority of Home Watch services are listed under the government code for "guard, detective and armed car services"? Others are listed under "janitorial services," "farms," "real estate and managers," and the old standby, "non-classified services." I would bet the ranch that there are a lot of Home Watch companies who are paying a lot more for insurance than they should be. I had a long and informative conversation with the Census Bureau in Washington last week. I found out that if we start lobbying for a classification now, it won't even be up for discussion until 2013 for the 2016 new listings. What do we do until this happens?

And then there is something that is a "no-brainer" to me and all the companies I am in contact with. Why are insurance companies not incentivizing all customers who employ Home Watch? If a legitimate service is checking on an empty home, how can that not reduce the chances of an insurance company having to pay out larger and more frequent claims to these homeowners? If there is an issue that can be rectified sooner rather than later, how can this not be worthy of a discount for the homeowner?

These are some of the issues that need to be addressed, issues which if dealt with can not only solidify market share amongst us, but more importantly, add even more credibility and value to what we do. I ask for your help and input in tackling these obstacles, in making things better for all of us. As always, I wish you

Much success,

Jack