10 Steps to starting a credit repair business
These days if you want to start a business related to some type of finances is often a good bet for you. One of the better options regarding financial related businesses is starting a credit repair business. It’s no secret that people tend to get in trouble these days with their credit by doing such things as maxing out too many credit cards and by being extremely delinquent on bills or not paying them at all. Credit is so important people are willing to pay good money to get their credit repaired. Here are 10 Steps to starting a credit repair business that will help to make your credit repair business a success.
1.Research the startup cost
This one is pretty simple. If you don’t have the funding to start a credit repair business then there is not much use in trying. You will definitely have to make sure you have enough funds to cover at least the basics of the business. You will need to research how much it will cost to buy or lease office space, estimate how many staff you will need to hire and their salaries and you will also have to have office equipment such as computers and other supplies. And be sure not to forget advertising costs because your business will not get off the ground without it.
2.Research the learning curve
Review your credit report for errors and inaccurate information. This is important. You need to review the report line by line. Look for errors in your name, account numbers, balances and available credit and the length of time the account has been open. Most importantly, look for any derogatory remarks that are not your own or are not accurate. This is the information that is likely to be damaging your overall score the most. Having these items removed will certainly improve your bad credit rating.
3.Know what the federal law states about this business
When you are starting a credit repair business, it deals with some pretty sensitive issues and very personal information. You will be legally required by Federal Law to do such things as safeguard your client’s personnel information at all times and the penalties are high if you don’t. So research what federal laws and guidelines your business falls under or hire a lawyer who specializes in those types of things to do it for you.
4.Know what your state law says about this business
Just like there are federal laws that govern credit repair businesses, so too are there state laws. Once again, you can consult a lawyer who specializes in these things as to what they are or you can do some research online to come up with what state laws you need to pay close attention to.
5.Learn the basics of running a credit repair business
Every type of business has things which are specifically characteristic of it and you will have to learn what these are for a credit repair business. In order to learn the basics of your type of business you may be able to work out an arrangement with another company who does the same thing but is not a direct competitor of yours or you can go to a website such as ‘startupcreditrepairbusiness.com’ that has such things as instructional videos and other materials that will help you learn about the art of credit repair.
6.Understand how to get a merchant account to take credit cards
When you are starting a credit repair business you must take note that you will most likely never see many of your customers face to face. You will want to get paid and a majority of this will be done through debit and credit cards. You will need to set up with a merchant account to process credit and debit cards. Banks, PayPal, QuickBooks and Flagship Merchant Services are all examples of companies that do not process credit cards for credit repair companies so you would have to find banks that do offer businesses credit and debit card processing services.
7.Learn the basics of credit repair
8.Research the best software for startups
These days you can pretty much forget about owning a business without using a computer to help you keep track of things. The key here is finding a software program that fits your business niche. You will have to use a credit repair software program that cannot only track the finances of the business but can also keep a customer data base and lets you send credit disputes through them too.
9.Learn the process of acquiring a client
An important part of starting any business, let alone a credit repair business, is planning a strategy on how you will acquire your customers. There are several ways to get this done. You can do such strategies as develop your company’s social media presence, embark on a campaign to generate leads and then follow them up or you can even choose to go with a free offer to make potential customers choose you over your competition.
10.Learn lead generation
If you are really serious about starting a credit repair business, you will need some customers. How do you get them? That is where lead generation comes into play. Here you can do such things as buy names from a business that generates lists of people that have poor credit or by doing something like a direct mail campaign. The most important thing about lead generation is making sure it gets to your target audience. You wouldn’t want to do something such as advertise your credit repair business in a magazine about wealthy lifestyles.
If you follow most or all of the advice in these steps you will be well on your way to establishing a successful credit repair business.