REFERENCE CHECKING SERVICE BUSINESS PLAN

I. Executive Summary

Company Description

TrustCheck Solutions (name chosen to reflect verification and reliability) is a U.S.-based background screening provider launching in 2026 and headquartered in Chicago. We operate in the employment screening and HR technology sector, serving small and medium-sized businesses (SMBs). Our core offering combines AI-powered data analysis with expert human oversight to deliver fast, highly accurate candidate verifications that are fully FCRA compliant. We sell on a flexible, usage-based model so clients pay only for the checks they run. One-line summary: reliable, compliant background checks built for SMBs.

We run automated data aggregation, machine-learning risk scoring, manual adjudication for edge cases, and secure reporting delivered via API and a web dashboard. What sets us apart is the hybrid AI+human workflow that lowers false positives, speeds turnaround to under 48 hours for most checks, and preserves legal defensibility. Target customers are U.S. SMBs hiring hourly and salaried staff across healthcare, tech, retail, and logistics. Short-term goals: onboard 200 SMB customers and reach break-even by Q4 2027. Long-term goals: scale to 5,000 customers, expand to integrated identity services, and sustain >60% gross margin. One-line goal: scale fast, stay accurate, and protect employers from fraudulent credentials.

Problem

U.S. companies lose revenue and productivity from bad hires caused by falsified credentials and misleading resumes. Manual reference checks are time-consuming, inconsistent, and often miss key employment or credential issues, leaving hiring teams exposed to legal, financial, and reputational risk.

Small and medium-sized businesses lack dedicated HR teams and cannot absorb the cost of hiring mistakes. The market lacks a standardized, deep-screening option that scales affordably and delivers consistent, accurate results for SMBs.

Launching in 2026 from Chicago, our service combines AI-powered data analysis with human oversight, operates on a usage-based model, and maintains full FCRA compliance to fill this gap and reduce hiring risk for SMBs.

Solution

Fast, accurate verification reports combining AI analysis with human review. U.S. employers face rising losses from bad hires and falsified resumes; manual checks are slow and error-prone while fully automated tools miss nuanced discrepancies. Our tech-enabled platform addresses that gap by combining AI-driven data collection and pattern detection with expert human review to produce compliant, exportable verification reports for employment, education, and references.

One line: provide scalable, usage-based screening that gives SMBs documented confidence to hire faster and safer.

Mission Statement

Our mission is to empower U.S. businesses to build high-integrity teams by delivering the most accurate, rapid, and compliant background and reference checks through a blend of AI efficiency and human expertise. We protect clients from hiring risk while upholding strict data privacy and legal compliance. We aim to be the trusted partner for SMBs nationwide so every hire is a confident one.

Key Success Factors

Success is driven by our proprietary AI platform, Senior Verification Analysts, strict FCRA compliance, usage-based pricing, ATS/HRIS integrations, and disciplined financial management.

• Leverage proprietary AI and Senior Verification Analysts for accuracy
• Maintain strict FCRA compliance to protect clients
• Offer usage-based pricing to serve SMBs affordably
• Integrate with ATS and HRIS for seamless workflow
• Control costs to reach break-even within 10 months

Financial Summary

A concise snapshot of projected revenue, profitability, and returns for the Reference Checking Service.

Financial requirements include total capex of $540,000 and a 2026 marketing budget of $120,000; break-even occurs in Oct-26, payback in 34 months, minimum cash -$96,000 in Mar-27, and overall IRR of 4.94%.

The plan scales to $13.68M revenue and $5.402M EBITDA by 2030 with 38.0 FTEs supporting operations.

Funding Requirements

We need approximately USD 1,178,000 to fund 2026 capital expenditures, cover the first-year EBITDA shortfall, finance Year 1 marketing to reach payback, and hold a minimum cash buffer through March 2027.

We project Year 1 revenue of USD 1,630,000 growing to USD 13,682,000 by Year 5, an initial EBITDA loss of USD 452,000 in 2026, profitability in 2027 with EBITDA USD 463,000, break-even in October 2026, full payback in 34 months, IRR 4.94%, ROE 10.28%, and 38.0 FTEs by 2030.