As in any industry, understanding your competition is essential to the success of your collection business. If you are collecting debt for 3rd party entities, it is vital that you understand what others in your industry and area are doing to be successful. Each demographic area has its own set of challenges. Even though debtors are wide-spread, the area in which you live can have a huge impact on how successful you can be at collecting debt.
Find out how your competition gets new business, how their business works, how they process older accounts, and how they communicate with their clients. Much of what you learn from your competition will be useful when setting up your own business. Understanding who your competition is will also be helpful in knowing if you can be successful in the area in which you live. If there is already a saturation of collection agencies in your area, it may be wise to move to another area or location where there is a need but the market is not so saturated.
If you are collecting on debt that you own or debt that you have purchased, having competition close by will not be as impactful to your business. By learning how other successful business structure their staff, their accounts, what software they use, and how they have become successful will give you an indication of what it will take for you to be successful in your own collection business.