How to Develop a Significant Income in the Credit Repair Business
If starting a credit repair business to create a sizable income is your goal, then you’ll need to develop a short-term and long-term business plan to achieve it.
That goal must be at the forefront as you are deciding how to start and operate your business. If it is not, you could find that all you’ve done is create a job for yourself that has limited income potential. To develop a significant income in the credit repair business, there are 2 components that must be developed at some point.
Start Your Credit Repair Business with the End Game in Mind
Do you want to be a solopreneur or an entrepreneur? I’ve written and done videos about this over the years. A solopreneur is someone that does everything themselves. They believe that they can run it all and make all the decisions better than anyone else. Although they may have the talent and skills to do so, they still can’t create more time to get it all done. Therefore, a solopreneur is limited by the number of hours in a day, and therefore so will their income be.
An entrepreneur understands that to build something large, they must oversee the operation but not run every aspect of it. Overseeing a startup credit repair business takes skills that some people may not have and work that some people may not want to do. But it’s the only way to overcome the limitations of running everything yourself.
You’ll Need Staff to Help You Grow Your Credit Repair Business
When you get started it might be beneficial for you to learn all aspects of your business by doing everything. Marketing, sales, administrative work, and customer service will be the main responsibilities. But you may not be great at everything. I know that I certainly am not. There are tasks that I like to do and am good at. But there are certain jobs that it’s better for someone else to do. At some point, to expand your credit repair business and income, you’ll need to have others take on some of the work. That will free you up to do what you are best at.
The Challenge to Hiring a Staff in the Credit Repair Business
There are significant challenges to bringing on staff, however. The Covid epidemic has exacerbated these challenges as it’s increasingly more difficult to find people that want to work. But the biggest problem is paying them. Why? Because the profit margins are low in the credit repair business. The average monthly fee charged in the market is $100. To cover overhead, pay your staff, and still make a profit, you’ll need a significant volume of customers coming in every month. Remember that credit repair clients only stay on service for as long as they need to. And if an unexpected expense occurs for them, they will be looking for other expenses to cut. The big question then is, how are you going to create this volume of customers all by yourself so that you can then afford to pay staff?
Our company has solved this problem for its Agency owners. Because we have tens of thousands of customers on service, we generate a lot of revenue. Therefore, we have staff available at our corporate office to do all the administrative work for our Agency owners. That includes pulling and analyzing credit reports, drafting dispute letters, and customer service for our clients. What this does is free up our Agency owners to go out and build their business. And this staff is provided at no cost to the Agency owner.
Expanding Your Credit Repair Business
Even with offloading the administrative work to free you up to market your business and sell to clients, you’ll still be limited as to the number of clients you can bring in. And the growth of your business will still be dependent completely on you because you’re doing the marketing and sales. Or you’re doing the administrative work and relying on others to do the marketing and sales. So, what can you do to expand your business?
Let’s look at some of the biggest companies in the United States. Century 21 Real Estate, State Farm Insurance, Marriott International, RE/MAX Real Estate, H&R Block, and the UPS Store. What do they all have in common? They have multiple locations running on a proven system. I’m not suggesting that you become the Century 21 of the credit repair business. But you should still understand that to expand your business in an industry that makes small margins per client, you must find others to operate independently from you while you generate revenue from their efforts.
Making smaller increments of income from multiple sources is the path to monetary success. John D. Rockefeller was born into a poor family but became the richest person in the United States. He is also famous for his quote, “I would rather earn 1% off 100 people’s efforts than 100% on my own efforts”. To be completely transparent some attribute this quote to J. Paul Getty. Whoever said it, the logic still applies.
A Business Model That Allows for Expansion
As I mentioned at the beginning of this article, you must design your business for growth from the start. For one person to pull off what I’m talking about is a tall task for sure and could take years and even decades. But the business model our Agency owners work under already has this built-in. And we make it simple to learn how to start a credit repair business.
Our Agency owners can find others that want to own their own credit repair business and earn income based on their efforts. Therefore, they can grow their business exponentially and have unlimited income potential. And get this… They don’t have to train them, manage them, or provide the infrastructure for them. It’s already provided for their new Agency owner.
The post How to Develop a Significant Income in the Credit Repair Business appeared first on Michael's Insights