Strengths
One of the most positive aspects of a notary business is that their services are required in any economic climate. This is due to the fact that people are going to need to have contracts, wills, trusts, and other important documents signed in front of a nonpartisan individual who can attest to the fact that the parties that signed the document have been verified. Even during highly challenging economic climates, the demand for notarized services remains incredibly strong.
Additionally, the startup costs associated with becoming a notary and offering the services of a notary public are very low. These businesses can be started for as little as $1,000 which includes any necessary coursework that is part and parcel with becoming a notary public. There are very low barriers to entry for this type of business. These companies can also generate highly predictable streams of revenue as they establish relationships with entities that frequently need notaries such as law firms, independently practicing attorneys, automotive businesses, title companies, and other entities that deal with contracts.
It should be noted that in certain instances some individuals that are starting notary businesses will often choose to do so on a much larger scale from the onset of operations. This includes having several independent notaries on retainer so that services can be offered in a wider geographical area. In these instances, the startup costs for a notary business can reach up to $25,000 depending on the amount of initial marketing that will be conducted in order to establish an ongoing client base.
Weaknesses
As it relates to weaknesses, these businesses have very low barriers to entry (which is concurrently a strength among people seeking a low startup cost business). The amount of time that it takes to become a notary public is very small. As such, this has caused a substantial amount of competition in the market, including online providers. It is imperative that a notary that is looking to scale their operations maintain an expansive traditional and online focused marketing presence so that they are able to effectively establish a client base among companies that have ongoing needs for notary services as well as the general public (as they need these services from time to time). Although there are potential liabilities from not properly rendering notary services, these matters are relatively negligible, and most states require that a minimal bond is held to address any potential future liabilities.
Opportunities
Opportunities for expanding a notary business are immense. Foremost, these businesses can operate in an agency capacity where they maintain a roster of state-licensed notary publics that are able to provide their services on behalf of the company. Once a business has established a substantial and ongoing client base these firms can easily scale their operations by independently contracting individuals that can operate in this capacity. Additionally, one of the major trends within this industry is to provide services in an online capacity. As a result of the pandemic, many states have allowed video-based notarizations to occur. This can substantially boost the revenues of a notary business as they can provide their services throughout the entirety of the state in which they are licensed to provide these services.
Another way that these businesses can expand their revenues is by offering services on a mobile basis. This is especially important for notary businesses that are focused on providing their services during the course of home and property sales. The ability to directly travel to a client’s site to render these services provides these companies with a major differentiating factor. Additionally, notaries can charge for the amount of time they spent traveling to a specific site to conduct their operations. As many states have regulations regarding the specific amount of money that can be charged for the services of a notary public, this can be a very important secondary revenue center that leads to greater profits.
Most importantly, and as touched on above, ongoing marketing is the key for any notary public to boost their revenues. Many of the companies that operate within this industry will aggressively use social media as well as specialized SEO services to increase their online visibility. Beyond simply expanding the number of engagements that the business receives for notarization services, many entities will also offer complementary services such as operating as a registered agent or conducting specialized filings as it relates to the purchase and sale of vehicles. These ancillary revenue streams can further increase profitability while contributing to a greater level of economic stability.
Threats
As it relates to threats, there’s really nothing that would impact the way that a notary will conduct business. The primary threat that any notary public business faces is simply that there is a significant amount of competition within the market. During challenging economic climates these businesses tend to remain stable given that transactions that require notarization still needs to be completed as well as for important legal documents. There may be some slight downward pressure as it relates to providing notary services for new home purchases. However, these businesses typically have very low operating costs and even during an economic recession they are able to remain profitable and cash flow positive.