The answer to this question depends on where you chose to start your business, how many employees you choose to employ, and whether your business will require office space. The typical expenses involved in starting up a new debt collection business are as follows: […]
Perhaps the most common mistake when starting up a new debt collection business is not knowing the costs and rules involved in opening a collection company in your city and state. Several businesses will fail before they even get started because they are ready to open their doors, but are unable to open them because they are waiting on licensing specific to their particular area. Make sure you research your local and state business rules for opening a collection business. […]
Am I prepared to spend the time and money to make my business successful?
Perhaps the single biggest reason that businesses fail is because the business owner(s) is not prepared or willing to spend the time and money that it takes to make a business successful. Before you start your debt collection business, be sure that you are willing to invest the time and money it takes to make your business successful. How much money will you need and how much time will you need to spend? Both questions are very pertinent and vary in their answers.
More often than not, debt collection businesses close their doors because they did not start with a solid foundation of knowing how to generate profit. So ask yourself, “What are my plans to be profitable in my debt collection business?” Those who are profitable in the debt collection world have a solid plan for obtaining quality accounts and a creative plan for working those accounts to produce their cash flow. The most common types of debt collection are the following: […]
Ultimately to be successful in your collection business, you will need to adopt what others in the industry have done and are doing but also utilize your own creativity and business savvy to make your business and services stand out and be successful. So ask yourself, what makes your business different from your competition? […]
So why do we need to worry about the tools, can’t I just start calling people and collect on their debt? The answer to that question is yes … BUT you need to ask yourself how you will gauge the success of your business and how you will maintain compliance with all of the rules and regulations in the collection industry. Aside from the obvious tools you will need like business location, phone, employees, internet, and business licenses, there are several industry specific tools that will help you achieve success, maintain compliance, and stay profitable in your collection business. […]
A great question to ask yourself and one that needs to be clarified before you start your business. Your ideal customer is going to be the one that pays your bills. It will be the source of your revenue and ultimately the success or failure of your business. In the debt collection world, your clients are either the people you are collecting debt for, or the debtors themselves depending on whether you are collecting debt for a 3rd party or collecting your own or purchased debt. […]
This is a great first question to ask yourself if you are embarking on the voyage of debt collection. Those who are successful in this industry have a passion and a knack for being creative and successful. In today’s economy, collecting debt can be a challenging business at best. You must be willing to work hard, find creative approaches for working with others and managing your own cash flow even when debtors don’t or can’t pay. So why are you starting a debt collection business? […]