A credit repair business is a very profitable business to start. As people have become increasingly dependent on credit to buy homes, cars, pay for college expenses, purchase appliances, furniture, etc., millions of consumers find themselves embroiled in debt. Many consumers pay their debts on time each month only to realize that their debt balances are not improving. In fact, their credit card balances may be rising or growing. This is why there are so many success stories about people who have turned their bad credit around and built up fantastic credit scores by having a home-based business that offers to help consumers with their credit repair problems.
For those of you thinking about starting a business like this one, here are some tips for how to start a credit repair business.
1. Plan Ahead
When starting any business, it’s important to take time to plan. This is even more important in a credit repair business because your entire livelihood depends on your ability to attract new customers and retain their trust over the long term (typically one year or more). Make sure you have a customer service plan in place to know exactly what to expect, including the phone number they should call if there are any problems with their order.
2. Choose Your Market
It’s also important to choose which type of consumer market you will sell to. The best way to go is upmarket because these consumers are willing to pay more for the service. These consumers also tend to be younger (thus not yet bogged down with debts that might take years to clean up).
3. Pick Your Platform
You need a platform that will allow you to take credit card payments and process them quickly. This means purchasing software like Cybersource or an SSL certificate so you can go through Paypal (this is especially important if your target market is overseas because most of these countries do not accept checks, cashier’s checks, or money orders as forms of payment). You will also want to consider using pre-recorded messages instead of living operators when taking calls–it saves time and money.
Different types of direct-marketing advertisements work better for different types of credit repair businesses. If you’re selling a nationwide service, then television and radio ads will be important because they can reach the biggest market and generate the most revenue (and if done right, build brand awareness as well). If your target market is strictly overseas or in certain regions in the U.S., then print advertising might be more appropriate because it’s less expensive than traditional television/radio ads.
5. Promote Your Business
For consumers to know that your company exists first, you need to do some promotion. This might include participating in trade shows or events that are likely to attract your target audience (for example, family planning expos when promoting fertility services) as well as making sure you’re listed on all of the major search engines and directories (Google, Yahoo, Bing, etc.).
6. Offer Customer Service
If you want to build a successful credit restoration business, then your customers need to be able to contact you immediately and receive support around the clock. Also, make sure that any messages they leave are returned by either e-mail or telephone expediently. Doing this consistently over time builds trust between you and your customers, which is vital when dealing with delicate matters like bad credit ratings!
Another tip is to provide different types of services for varying prices so that consumers who just need help finding out what happened to their file can sign up for a minimal fee. In contrast, those who need extensive credit restoration can sign up for a larger fee. Whatever you do, just make sure that your fees are clearly spelled out–and legal!
7. Stay Organized
Finally, stay organized because this will help ensure that your business runs smoothly and efficiently (including keeping financial records). If you don’t like to balance the books, then consider hiring an accountant (or even better, an experienced bookkeeper) who can meet with you regularly during the first few years of running your credit repair business so they can get things set up properly from day one.
If starting your credit repair business interests you but all of these steps seem like too much work right now, check out this article on how to find the best credit repair companies in your area.
8. Outsource What You Can
Alternatively, you can outsource some of the more tedious tasks to your employees or even an intern so that you can focus on what’s most important–sales and marketing! If you plan to hire someone, make sure they are properly trained to understand what you need to do and how to do it.
Starting a credit repair business is relatively easy compared to other types of services–but before you begin, be sure to have a workable plan in place with plenty of checks and balances, so you never lose track of your revenue. By following these five simple steps, you should be able to get your new credit restoration company up and running in no time.