Archive for

Open a Credit Repair Business

Looking for a recession-proof business opportunity? Open a Credit Repair Business.

Why? Over 80 million americans have bad credit, but most will need their credit fixed in order to finance a home, a car, get better job offers, pay lower car insurance rates… it’s a fact of modern life that credit has become important. As the economy worsens, more people need the service.

One common mistake people make when planning to open a credit repair business is to think it’s all about the software. That’s like thinking the success of a fast-food hamburger restaurant is just about the recipe for their hamburgers.

When you open a credit repair business, you need a complete system – training, ongoing expert support, unlimited paralegal support, an attorney-managed system for maximum results. As it is, credit restoration is not an exact science. Will you be the market expert and clear choice for referral partners? There’s not much profit in being 2nd best – so when you open a credit repair business, be sure to consider: are you committed to making this work?

When you open a credit repair business, clients will look for you to be the expert they can count on. A software system alone would never deliver this – credit repair is simply too complex. Most commonly, professionals who open a credit repair business will develop relationships with real estate, mortgage, auto loan professionals, as well as businesses who depend on consumer credit, such as jewelry and furniture or colleges. These businesses depend on their clients having access to attractive financing.

Another common mistake people make when they open a credit repair business is to not budget for marketing. Once you open a credit repair business and it’s running, you’ll work to develop marketing systems that consistently produce profit. If you made $20 for every $10 you spent, how much money would you want to spend? Obviously as much as you can. Investing into your future to open a credit repair business may be the vehicle you’re looking for to help reach your financial goals.

The biggest reason people open a credit repair business is to develop a vehicle for success that can take them past the $100,000 per month mark. Everyone’s success varies by personal talent, resources, and work, but the potential is there. Having seen many entrepreneurs open a credit repair business, here are some of the common mistakes I can pass along and help you avoid.

First, some entrepreneurs don’t get sufficient liftoff in their business because they fall into a roller-coaster of marketing, then getting busy with files and operations, which then leads to them not marketing, which results in decreased business, which then frees up time for more marketing. This creates a very inconsistent income and can be easily avoided by either separating roles if you have a partner, or by time-blocking and scheduling marketing activities.

Another common mistake is not actively cultivating referral sources. There are many professionals who depend on having clients with good credit, including real estate agents and car dealers. These people constantly see a stream of people who need your services. That said, it may take some repetition to develop these sources into a stream of business via marketing, in-person contact, and getting that all-important first client from them.

One other area that’s not a mistake per se but an overlooked opportunity is marketing relationships online. There are many websites who will pay for leads of people with good credit (be sure to get a client’s permission for this), and upstream opportunities for an online equivalent of these traditional referral sources.

If you’ve found this article about how to open a credit repair business, and like the concept of being your own boss and potentially earning an executive level income, we invite you to investigate further. Request our free white paper, and get more information. We look forward to answering any questions you have.

Is a Business Plan Necessary?

The plain truth is, business owners of any size that take the time to outline what they will offer, what they’ll need to start and what their goals are more likely to succeed.

What exactly is a business plan? It really isn’t a mystery; it is your plan for making your business a success. Not only will a good business plan help you in securing funds for starting your business, it can help you think about every aspect of your business, from who you plan to sell your services to, to what you’ll need before you even start selling your services.

You might even find yourself avoiding some common pitfalls of smaller businesses, such as not anticipating enough funds to keep you going for the first year of business or realizing that you may need assistance in an area you don’t have experience in, such as technical support or bookkeeping.

A business plan doesn’t have to be dozens of pages long, but it should include basic information about your goals in both the short and long term, your business and how you imagine you’ll run it, and what your start up costs will be. The following are a few things that should be included in your business plan.

The first thing in your business plan should be your purpose. Think about what you want to accomplish with your business and what your goals are. From there, describe your business. Here you can describe exactly what your business is, when and where it was formed, the structure of the business, who the owner is and who is operating it.

From there, you can describe your market. Who do you imagine your customers will be? Here, you can also go into better detail about what you’re offering, why there is a need for your particular service or goods, and what makes your business better or different from your competitors. From there, you can go on to explain how you intend to meet the needs of your market. How are you going to produce your services or the goods you intend to sell, and how are you going to deliver your goods or services to your customers?

If you’re not truly a one person business, include information about who your staff is and what they will do, as well your suppliers.

The next thing in your business plan should be your time table. Do you want to reach a specific goal in a certain amount of time? This is the area where you should detail what your financial goals are.

Finally, outline your financial requirements for starting your business. This is not the area to skimp — if anything, overestimate the amount of money you’ll need. Too many small businesses fail to count on enough operating money at the beginning and find that they have to close their doors all too soon. Don’t make this mistake!

Really sit down and itemize everything you’re going to need to get going, including advertising, your business license or fees for setting up the structure of your business, computer software, even keeping your utilities going in your home (if you don’t have any other income), plus the cost of operating your business for a fixed amount of time without profit.

Writing a business plan for your home based business shouldn’t be something to be afraid of. If anything, a business plan will help you focus, get all your goals and ideas on paper, and help guide you in making your business a success.