Setting up your own chartered surveying practice
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There are so many things to consider when setting up a chartered surveying practice, from how to find the right market and set fees at the correct level – to developing a business plan for future growth and considering what makes the practice stand out from rivals.
But none of these goals can be achieved without the basic building blocks of a business being in place – whether that is insurance, compliance or procedure-related.
These are the kind of boxes that any bank manager will want ticked before providing a business loan or a business account. And they are also the requirements for membership to an industry body such as RICS, the Royal Institution for Chartered Surveyors, a global professional association promoting and enforcing high standards in the sector.
According to the official RICS website the list of what is expected from businesses which request to be registered includes: [1]
- Fulfilment of its Rules of Conduct for Firms
- Adequate insurance – particularly professional indemnity insurance
- Measures in place to preserve the security of clients’ money
- A complaints handling procedure already in place
- Appropriate processes in place to ensure staff are trained and competent, including opportunities for CPD.
A good insurance broker with in-depth knowledge of the sector can not only provide insurance products to achieve some of these requirements but also support clients in many other ways as they set up a new business.
Key insurance considerations
- Professional Indemnity Insurance – one of the key items, under Rule 9, of the Rules of Conducts for Firms issued by RICS. This type of insurance is a requirement, even if you are self employed. Some insurance brokers, including Howden, can also provide policies which cover voluntary or charity work.[2]
- A number of other insurances one may consider when starting a business, may include :
- Public liability
- Buildings insurance
- Employers’ liability cover
- Directors and officers cover
- Contents insurance
- Business interruption insurance
- Cyber Insurance – the rise of the internet, digital data and social media has been a huge boost for sole traders and those setting up a new business. It allows them to work without an office in some cases, to trade globally without leaving home and to reach clients and markets which only industry giants could touch in the past. But it also brings an ever-increasing threat of data breaches, hacking and online crime. So cyber insurance has never been more important.
- Advice on compliance and new legislation - the EU General Data Protection Regulation, in place from May 25 2018, puts onus on businesses to protect their clients’ data. Surveyors often hold valuable client data which makes them a target for cyber criminals. Howden offers full cyber cover with policies that cover any liability to a third party and also, crucially, provides access to a team of experts to help manage the breach or incident.
- Advice on legal, tax and HR issues - Howden provides exclusive benefits to clients, (beyond just arranging the insurances that help in the smooth running of a firm), at no extra cost, to include:
- Legal Advice Helpline
- Tax Advice Helpline
- Legal Services Website
- Counselling and Medical Helpline
- HR and Health & Safety Advice
- Cost savings/Procurement Review
Other considerations
- How to fund the business – for instance whether it will be self-funding, financed through friends and family, financed through a bank or through third party investors. Government grants may also be available. The government’s business website, https://www.gov.uk/business-support-helpline, can provide support.
- How to build the business – including producing a business plan and processes for business development and people management. Factsheets on all these areas can be found at: http://www.rics.org/uk/knowledge/small-business-hub/small-business-toolkit/practice-management-factsheets-for-smes/
With those building blocks in place, sole traders, directors and partners can begin to think about the process of taking a new business to market and how to make it successful – safe in the knowledge that all risks and compliance issues have been taken into consideration.
So, the final advice comes from successful practice owner Dayle Bayliss, whose tips in an article for RICS are more wide-ranging.[3]
They include:
- Don’t be afraid to ask for help and seek out mentors.
- Find your niche in the market and shout about it, be on top of social media and network as much as possible.
- Get your pricing right and competitive. Don’t undersell yourself – but over-selling yourself is an even bigger no-no.
- Don’t be afraid to delegate – being a chartered surveyor doesn’t mean you are also an expert in accounting, marketing and web design as well. Employing the right team which provides different skills could be crucial.
[1] https://www.professionspracticefinance.co.uk/news/setting-up-your-own-chartered-surveying-practice/
[2] http://www.rics.org/uk/regulation1/firm-and-individual-guidance/professional-indemnity-insurance-pii/sole-practitioner--small-firms-pii-advice/
[3] http://www.daylebayliss.co.uk/2014/06/setting-practice-tips-surveyors/