Now that you’ve decided to become a credit repair expert, it’s time to knock out your roadmap for success.
A bulletproof credit repair business plan contains all the components of a typical business plan but takes many of those elements one step further within the realm of this specific industry. These elements generally include:
- Executive Summary
- Business Description
- Market Analysis
- Competitive Analysis
- Operations and Management
- Financial Predictions
The following five tips can guide you as you create your own business plan for a credit repair business that increases your potential income and serves your local community.
1. Focus on the benefit to the client’s future and the community in general, not only on credit repair itself
Your credit repair services themselves obviously will comprise much of your business plan. But it’s not just about the product or service you offer, but also the actual benefit of that product or service for your clients.
In the case of credit repair, lifting up one member—or multiple members—of your local community can ultimately elevate the community as a whole. Helping clients pay off debt and improve their financial situation means they have more expendable income that can then fuel other businesses in the area.
Include in: Executive Summary, Business Description, Market Analysis
2. Point out gaps and weaknesses in the current market for credit repair services and detail how your business model will address them
Businesses may approach their competitors with different strategies, from being the first to market or having the lowest price, to offering the standalone best product or customer service available at that time. Part of creating your business plan will naturally be to examine your competition, their products, and business models (to the extent you know them).
But for a bulletproof credit repair business plan, go deeper by providing specifics on how you will address each gap and weakness your competitors leave in their wake. It can seem petty at times, but this business plan is about distinguishing your businesses and establishing trust with potential lenders, investors, and other partners. This part of the research and planning process can also ensure you that you do in fact develop a superior business model as a credit repair expert.
For example, one gap may be that other credit repair companies that advertise in your area are not local businesses and do not have a presence in the community. Differentiate yourself by highlighting the fact that you are local and building trust by:
- Attending local functions
- Speaking to local groups
- Appearing on local TV, radio, and newspaper features
When it comes to trusting someone with their financial well-being, you will find that prospects would rather put their credit repair in the hands of a known and trusted neighbor rather than a faceless national law firm.
Include in: Business Description, Competitive Analysis
3. Demonstrate smart, industry-specific fiscal plans
Any decent manager or business owner can find ways to cut costs in a business regardless of the specific industry, such as by reducing overhead or labor costs. But to produce an ironclad credit repair business plan, some of those cost-cutting measures should also pertain to the financial and credit repair industries specifically. This demonstrates your knowledge of not only sound business practices, but those that apply specifically to credit repair services.
For example, you may be unable to work from your home to save on commercial rental space. However, you could lease office space in or near a realtor’s office or other office building that houses real estate industry professionals. This move inherently situates your business in a high-traffic area for leads in real estate—leads who may need a credit repair expert to help them quality for their home loan.
Include in: Operations and Management, Fiscal Projections
4. Be realistic, but aim high in your financial goals and projections
Unrealistic financial goals and projections can deter potential lenders and investors. At the same time, be careful not to sell your new business endeavor short on the potential for not only your income but for the financial stability of your local community.
In addition to your own personal projections, include specific financial projections corresponding to the community benefits you outline in other sections of your credit repair business plan. These demonstrate the benefit your services offer not only to individual clients but to the local greater good.
For example, you can gather information about real estate trends and projections in your local market and demonstrate how your services enable more residents to purchase homes in the area. Break down how your credit repair business’s impact creates a ripple effect to improve mobility for the community as a whole using local market research and any figures available to you.
Include in: Fiscal Projections
5. Brainstorm underutilized sources of leads and partners for affiliate lead generation
In addition to local real estate agents and mortgage brokers, you may uncover other hidden sources of credit repair clients. From local fundraisers to networking and community events, individuals needing assistance getting their finances over-permeate your local social ecosystem.
Social media outlets like Facebook, Twitter, and LinkedIn can provide direct access to potential clients.
But these networks can also enable you to engage with local financial affiliates and professionals who can refer clients back to you. For example, you may consider striking an affiliate partnership with a local real estate agent. The agent can refer you new clients out of their own client pool when they don’t currently qualify for their home loan, and you can refer any of your credit repair clients to that agent when the client is ready to purchase a home.
Include in: Executive Summary, Business Description, Fiscal Projections
Learn more about how to implement your roadmap for credit repair success on our guide How to Start a Credit Repair Business That Is Profitable.