Collection Agency Business Plan Essays Critically Discuss
As a collection agency, everyone will require you to personally guarantee everything including a multiple year lease, Payment processing, vendors, business loans etc.
Debt buyers are VERY discriminated against in business.
Before I built up my contacts, I had gotten burned more times than I can count.
Each time felt like it was going to put me out of business.
I wish you the best of luck if you're getting into the industry and I hope you have a strong constitution and strong moral fiber.
Being one of the good guys will get you farther than trying to make a quick buck.
Doing things the wrong way can lead to being shut down by any number of regulatory agencies and your income is going to come from people that despise the service you provide.
I'm happy to advise about the industry and can show you an article that I've written for a trade conference with the DBA that goes more into depth on all of these topics. Have an accountant that is familliar with Collections and make a solid business plan.
A lot of people hear “there's a lot of money in Collections”, like anything it's a business.
I was good at living off of very little money, so I was able to go a long time without taking a single paycheck.
If I was going to do it again, I'd start with not a penny under ,000.
I've known collectors who “went into business for themselves” and lived large for a year before realizing that they owed the IRS 90% of the money they blew through with “new found wealth”. With all that having been said, if you are an honest businessman with an honest plan and understanding then I welcome you to this industry with open arms.
I can not stress this enough, work with an attorney and an accountant and plan very well including every contingency you can imagine. We need more straight shooters to help restore this industry’s reputation.