Start your credit repair business out on the right foot with credit repair business tips from the experts!
1. Credit Repair is Not a Part-time Job
In order to be successful at a high level in business or any other endeavor, you need to focus your energy. Developing a thriving credit repair business requires focus, stamina, and mental strength to keep performing at a high level day after day. Credit repair clients and prospects need to know they can depend on your work ethic to improve their credit. If you are not available on a daily basis during business hours (at a minimum), credit repair clients will not take you seriously. You cannot build a legitimate credit repair business at a part-time, side gig.
2. Create a Business Plan
Your business plan is your map to make sure you are on the right track for growth and success. It should cover the four basic aspects of starting a new business: Finance, sales, marketing, and operations. For more information read this guide to developing a thorough credit repair business plan for important credit repair business tips!
3. Identify Your Niche
If you cast your line trying to reach every client, you will end up wasting time on small fish that will ultimately not support a sustainable business. For example, you might start by targeting people who have been recently turned down for a home or car, by partnering with a realtor or auto dealer. This credit repair business tip will help you discern which clients to keep and which to let go. Trying to help clients who may be in urgent need of your services will help improve the quality of people you work with, as they will be more receptive and motivated to get your services.
4. Learn, Learn, Learn
Just as a doctor needs continuing education to stay on top of the latest trends and developments in medical research and practice, a credit repair business owner must keep up with credit repair training and industry knowledge. Start out with foundational concepts and advanced training with the American Credit Repair Academy’s in-depth credit repair training program. Keep up to date and your mind sharp with our weekly blog and resources page for relevant credit repair business tips. Be ready to diagnose credit problems and keep your clients financially healthy for years to come.
5. Delegate Where Possible
A quarterback doesn’t run plan to run the ball into the endzone from the 100 yard line. He develops plays and depends on his linebackers to block while the running backs and wide receivers catch the ball and make the touchdown.
Winning in credit repair is a team effort. You launched this business and you are running the plays, but remember that if you try to get the ball there yourself every time, you will burn out. Just as a quarterback can’t block like a linebacker, working with people with different skill sets will strengthen your business. If you’re a great long-term planner but not so good with the day-to-day, hire an operations guru who can help you with the details. Credit repair business tip: At the very least, if you’re overwhelmed, get an assistant to process paperwork and manage your scheduling.
6. Build Affiliate Relationships
Mortgage brokers, car dealers, and other lenders make amazing referral partners. They want to see your business succeed so that they can complete a sale to a customer they otherwise would have had to turn away. Focus on creating these relationships in the initial stages of launching your business. Even if your businesses are a little different, building alliances ensures that each of you can work together for success.
7. Educate Affiliate Partners
Financial affiliates are your friend setting you up on a blind date. The more they know about how your business works, what you can do for clients, and what kind of clients you are looking for the better matches they will send your way. Let them in on the “niche” we discussed above so they don’t spend time sending you unrealistic leads. It also helps to provide them with an education packet or sales script so they know how to talk about your business to potential leads and know foundational credit repair business tips.
8. Create a Thoughtful Pricing Structure
Figure out your Cost per Acquisition based on the time, money, and resources you’ve spent acquiring leads and base on your first work fee on this figure to start out with a profit. Many people decide on a pricing structure based on their competitors’ prices. This is not a sustainable method to keep your business above water. If you have created a thoughtful pricing structure, stick with it to ensure profitability. For example, if your CPA is $89 your first work fee should be greater than that. This credit repair business tip will ensure profitability for years to come.
9. Have an Operational System in Place
Having clear instructions on how you are going to build back your client’s credit is important. Clients can grow frustrated or impatient when they don’t understand how it is all going to come together. Create a system that includes your client intake process, how your clients will pull credit reports, when clients will be charged, email automation, and all the other critical aspects of the process. This credit repair business tip will make your life much easier in the long run and will make your business appear professional to outsiders. Have a building plan before you start construction.
10. Educate Your Clients
Your clients look up to you to be the financial fitness trainer. With a system like Credit Repair Cloud’s credit repair business software helping manage clients, the actual “work” of repairing credit is minimal. Once a client is set up in the system, it’s about 5 minutes of work per month to maintain each client’s account.
Go the extra mile by educating your clients on how credit works and how they can help to speed up the credit repair process. Teach clients habits like paying down balances and not applying for new credit to maintain their great credit long after your work is done. These little extras that will be very easy for you and will give your clients the “wow-factor” that encourages them refer their friends and family for your credit repair services. A good credit repair specialist is never in search of clients because they will come to you, the expert!