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Here is the complete text of the interview with business owner and author Shari Joseph.

1.  How much would it cost to set up a mystery shopping company?

A. If you currently have a computer with internet access, a printer, and a fax machine, then you already have the equipment necessary.  There are some other costs, such as a DBA (Doing Business As) license, but these costs are incidental.
However, living expenses need to be considered.  If you currently
depend on a full time job to meet your financial needs, and want to
replace that income by starting your own mystery shopping company,
then start up money would be needed; the amount of course determined
by your specific situation.
I recommend starting a company part time, around your other obligations, and work your way towards replacing other income.  With any new venture, I believe itıs better to take one step at a time.

2. Will I need a special license? Such as an investigator?

A. At this time, the Private Investigator industry is trying to infringe on the mystery shopping industry via governmental intervention that forces mystery shopping companies and shoppers themselves to have a Private Investigator license.

This has been successfully defeated in many, if not most, states. Nevada is one current exception I am aware of. However, at this time, one legislator in that state is trying to overturn this law.

As far as the other states, The Business of Mystery Shopping 2003 gives a reference on how to find out if your state requires such a license at this time. Due to the fact that this situation is constantly changing, I donıt want to give specific state information here. However, you should be okay in most states.


3. Is it better to start off in the local market?

A. Yes!! We always suggest (and our book goes into detail on this) that you start off in your local market. There are several reasons for this:

- You can easily use the primary promotional method we suggest (we call our method the ³Golden Nugget of Promotions²) in your local vicinity.

- You probably wonıt be competing with large companies this way.

- Itıs much easier to get your foot in the door in your own local market.


4. How do you approach a company if you have no experience?

A. Itıs very difficult to approach a company and in essence say, ³Hi there! I have a brand new mystery shopping company and no experience. But, if you pay me, I can perform mystery shops for your company"
The only question here is how many seconds it will take this company owner to show you to the door!

However, our book suggests a specific path to get your first client. That entails getting involved with your local Chamber of Commerce and over several months, getting to know both the heads of the Chamber and your local business community.

Then, you can approach 3 business owners, who might need your service and make them a limited time "special offer".

Offer to shop for them for FREE in exchange for a one page letter of recommendation that you can use for your future promotional package. This is a win win situation. The company owner gets a free report that he can use to objectively look at how his customers are being treated, and you get a letter that you can use to get clients.

Then, with 3 letters (and the experience that goes with that), you can start to promote.

Thatıs when the "Golden Nugget of Promotions" can be used to really get going.


5. Can a mystery shopping business be started without immediately having a web site for the company?

Yes! The best way to start a business is in your local area.  Using the 'Golden Nugget of Promotions', as described in "The Business of Mystery Shopping", there is initially no need for an online presence.
However, when you start to grow your company beyond your local area, then you really do need a web site.  This will put you more on equal footing with the big boys.
An online presence may be far less costly and less hassle than you may think.  You can register your dot com name and get hosting for a full year, all for less than a $100/year.
At no extra cost, you can use "pre fab" templates to build a professional looking web site, no experience required!  These templates are very easy to learn and use.

6. How does your book compare to other similar books out there?

Since I purchased the competing books, I can say with confidence that there are a number of features which distinguishes our book from the rest.  We have information on how to successfully promote, how to put your questionnaires online without being a computer genius, and how to easily get money out of any late paying client.

We also have an exclusive listing of 44 different associations and 5 ways to use them to get clients. This is only a small portion of distinguishing features.



7. Can this be started on a part time basis and bring in a full time income?

A. At first, I would say probably no. Initially, part time work will most likely bring in part time income. However, as time progresses, that will change. Most of the work time is spent securing and getting a new client going; setting up their questionnaire, getting shoppers ready in their area, etc. Once a client is rolling along, the time you need to take with them significantly lessens. And, the more ³automated² your systems are, even less time is required.

Then, when you have several ongoing clients, part time work CAN yield full time income! And, this can happen sooner than you think!


8. What are the distinguishing factors between your book and all the others out there?

A. Since I bought the competing books, I can say with confidence that there are a number of features which distinguishes our book from the rest. We have information on how to successfully promote, despite the presence of competing companies, how to put your questionnaires online without being a computer genius and without spending a fortune, and how to easily get money out of any late paying client.
Additionally, we have an exclusive listing of 44 different associations and 5 ways to use them to get clients.
Very soon, we will have a book links web page where book owners can link to the many hundreds of resources in the book from one single web page.
This is only a small portion of distinguishing features.


9. What is the worst aspect of owning a mystery shopping company?

A. The worst aspect is the same as the worst aspect of any new venture. That is getting yourself to take that very first step towards company ownership. (I remember this one all too well!)


10. What is the most rewarding aspect of owning a company?

I'd say it's the knowledge that you accomplished your goal.  That will make the accomplishment of all your other goals easier.  Why?  Because YOU KNOW YOU SUCCEEDED, and therefore, you can succeed again -- at anything you choose!  Personally,  maintaining a successful mystery shopping company for 19 years has given me strength in many other areas of my life.



11. What would you consider to be he most important talent that one would need to start this type of business?


A. Before answering this question, I would like to add to it. Not only would I like to address starting this business, but succeeding with it as well. The talent one needs is persistence! Thatıs simply the ability to keep going on a specific path. Our book clearly lays out the path to success. Those who succeed will be those to stay on that path without veering off in different directions.

Distraction, to my mind, is the biggest deterrent to success. Persistence and focus are the biggest predictors of success. To help with this, there's an old and simple trick to maintaining that focus. Each morning decide which part of the path you will take that day. Then, make a to do list. My suggestion is to go as far as scheduling each task with a start time and how long it will take.

I would also suggest avoiding one pitfall. Many people I know who do this are overly optimistic and schedule far too many tasks for the same day. Then, what happens? They donıt finish their list and are frustrated by this. Itıs better to bite off just one or two tasks and know at the end of the day you have succeeded with them. That way, you will feel successful each day. If you keep succeeding in small ways each day, then larger success if inevitable!


12. Would you be able to compete with the ³big boys² as a home based operation?


A. At first, I would not even try to compete with the big boys. I always suggest starting small right in your own local area, then working up from there.

At a certain point, you may decide itıs time to go for national accounts (companies who have chain stores or franchisors with many locations). At that point you can still work out of your home if you wish. Your store front would then be your web site.


13. If you plan on expanding out of the local market, will that entail a lot of traveling?


A. I believe traveling is not a necessity to expand. By building your own web site, you can reach your target market right from your own office. Web site building can easily be accomplished now, and, as previously mentioned, can be done for under $100/year. Our book provides more information on this. You can also expand via a mail promotion, which can by costly. However, you can lower this cost by sending out postcards that point potential clients to your website.

The down side of depending on only your web site to expand, is that it directly pits you against your competition. While traveling is not necessary, it can be helpful in overcoming this obstacle. We do suggest getting involved with retail/hospitality associations. Specifics are discussed in our book.

Sometimes associations have lunches or events that are in your area that you can participate in. Example; I joined a state association that had regional groups when I first went into business. My local region sponsored a lunch and I was the guest speaker. This is a great way to go! In fact, one lunch I attended got me one client I had for 14 years (until I got tired of them, and let them go), and another client that used our service for 6 years. One lunch made me a lot of money.


14. How do you go about getting a database of shoppers, and do you need the database before approaching companies to advertise your business?


A. Since there are many ways to attract shoppers, I would not be concerned about getting shoppers ahead of time. Once you are ³courting² a client, and it looks like you might get them, I would begin to look for shoppers.

Since this can be done free over the internet, costs would not be a factor. You can go to mystery shopping job boards, or you can post jobs with services, such as moneyandshopping.com. If you do get a client and are stuck, you can use the services of a scheduling company.


15. What happens if you donıt fulfill the locations asked to shop? Can a company withhold the full amount owed you? Are you legally liable to pay shoppers if a company withholds money?


A. I must admit that in nearly 19 years of business, we have never missed a shop, so this question is difficult to answer. I actually credit our 100% success rate to the systems (and back up systems) we have in place. since we bill a client for each job that is completed, withholding money from a shopper does not apply.

As far as paying shoppers, we always pay our teams when we say we will, no matter what. However, our clients pay us within 15 days and we pay our shoppers in 30 days, so paying on time has never been a problem.

We also have methods to ensure that late paying clients do pay.


16. What legal recourse do you have if a client does not pay you?


A. If you have been diligent about doing a good job for a client, 98% of your clients will pay on time. We actually wonıt start work for a prospective client until we do a trial shop for them. In that trial shop, we do charge for our out of pocket expenses for the shop. We just forgo our regular fee. And, we state in a signed agreement that those expenses are to be paid 15 days after the invoice date.

When a prospective client does not pay for that trial on time (within 15 days), we wonıt work with them. This way, we eliminate most potential problems before they occur.

Then, if we are doing work for the client and they become slow to pay, we "make friends" with the people in their accounting department and "encourage" them - with humor - to get back on the right track.

If it appears they wonıt pay at all, and they are a couple of months overdue in payments (and we have spoken with their accounting staff), we will turn to our final recourse. This involves a letter to them stating that if they donıt pay by a specific date, we will enlist our collection agency. And, our collection agency can do irreparable harm to their line of credit, which will make it difficult to buy the goods they need to stay in business. Watch how fast they pay!! Our book goes into detail on this.

Fortunately, in our 19 years in business, we only had to use this method once and it worked like a charm! $2,000 that was overdue arrived by FedEx within 2 days of our faxing them this letter.


17. Do the clients want all the reports as they come in and a synopsis at the end of the project?

A. Clients generally want reports as fast as they can get them. They are usually eager to see what happens to their ³typical customer² and most want to take corrective action quickly, if they need to.

As far as a synopsis at the end of a monthly series, that depends on the desire of the client. Our clients have always been satisfied with our reports only and have never requested a synopsis.


18. Is there a difference in trying to get clients in the local market as opposed to going national?


A. The process of trying to get clients locally is initially different than national accounts. To try to get local clients, we suggest going to your chamber of commerce and from there, we suggest using ³the golden nugget of promotions². This is a specific process we suggest in our book. After you have enticed a potential client, you need to get a package into their hands with sample reports and offer to do a trial shop (our book goes into detail on this).

To get national clients, instead of getting involved locally, we recommend involvement in large retail associations. Our book lists 44 of them and contact information. Then the process is similar to getting local clients.

The methods thus far are where you initiate contact. If you build a web site, which is necessary for national accounts, then potential clients might contact you. However, realize if they are contacting you, then they are contacting other companies. With competition like this, it is much harder to secure an account. However, keep in mind, you can win over the competition; have a better product, have a better price, and offer really good customer service.

Bottom line; itıs always better if YOU are the one initiating the contact.

19. What one aspect would keep someone from succeeding in this business?
A. A lack of persistent attitude and consistent action.


20. What one aspect will cause someone to be successful.

A. Success is persistence with adjustments along the way. One must keep to their main goal - success in this business. But, if something doesnıt work - example, you give a speech and put everyone to sleep, you must adjust your speech for next time to improve it.

Bob Hope once said that success always has failures along the way. The difference between people who succeed and people who fail, is the ability to continue despite the ³failures².


21. So how long were you a mystery shopper before you decided to start your own business?

A.  My situation is probably unique. Back in 1980 I got a job with a mystery shopping company doing both report writing and mystery shopping for them. A couple of years later, I was promoted to company manager. Then in 1985, I decided to form my own company. From the time I was introduced to mystery shopping to the time I became a company owner was 5 years.


22. What was the original incentive that caused you to start your own mystery shopping business?

The main reason I went into this business was that I felt I had gone as far as I could with the company I was working for, and frankly, I saw lots of potential business and had strong ideas on how to succeed.
 

23. How much did it cost you to start your business?

A.  It cost almost nothing to start. The real expense was supporting myself until enough business came in. I have to admit that some money came from savings and my family was supportive. I just started out of my own home and used my home phone for business. I already had the equipment. If I had to do this again, I would have gotten a separate phone line for business. I have long since moved from working out of the home to an office.


24. How did you get your first client?

A. I got my business going by getting involved with a particular trade association. I went down to the headquarters, made friends, and let them know what I was doing. They were supportive and helpful. Once they were comfortable that I was legit and professional, many opportunities opened up through that association to meet and greet their members. Some of those members became
clients.


25.  Why did you decide to specialize in the restaurant industry?

A. I decided to specialize in the restaurant industry because as a shopper and report writer, this was what I was most familiar with.


26.  Do you really think that anyone can start their own mystery shopping business? Why?

A.  If someone is a seasoned mystery shopper, knows how to keep to deadlines, and knows how to get jobs done well, then they can succeed at their own company. They've got the reporting process down, it's just a matter of getting clients. What stops people is the belief they can't do it, OR the belief they can do it, but that it will only take one week to be up and running successfully, which is pure folly. To succeed it takes a specific roadmap and the perseverance to follow through on each step of that roadmap. I do believe anyone can start their own company and anyone can be a success. But, how many people actually make that choice?


27. Do you feel it is harder for a new mystery shopping business to succeed today?

A. While there are a lot more mystery shopping companies and the internet has entered the picture, the same basics of how to succeed still apply.

One more point along this line, yes, things have greatly changed. Some of those changes have caused me to have to adapt to some new ways of doing business. However, the main principles of success have not changed. Strip the word "business relationships" away and you have "relationships". Business, at its heart and soul is about forming relationships. That's one constant that I suspect will never change.


28.  What words of advice do you have for someone who is considering going out on their own in this field?

A.  My advice is pretty simple. Realize that success involves PEOPLE skills. You have got to get out there and "show 'em what you've got!" - in person! Many people today foolishly believe that if they create an internet presence, thatıs all they have to do. Creating an internet presence might work to bring in some clients, but for a steady successful business, you need to pursue several avenues.

Let's say a company wants a mystery shopping service. They are considering two possible shopping companies for the job. They meet and shake hands with a representative of one company. The other company simply refers them to their beautiful web site. Who will get the job? It's familiarity that breeds clients. A handshake is a lot more familiar and comfortable than a cold web site. Of course, the representative also has to make a professional presentation and be
knowledgeable.

Also realize that meeting and greeting new people is also what makes business fun. And, it's fun that will also keep one successful in business. One should never deny the value of having a good time while earning a living.

To order Shari's book, The Business of Mystery Shopping , click here.