As the government bailout opens up many opportunities for those wanting to start a small business, the debt collection industry offers plenty of potential rewards. Starting any business takes plenty of time, patience and hard work, but for those who have the endurance, personality traits and know-how, the rewards that can be enjoyed from starting your very own debt collection agency are huge. Here are few simple ways to get started on your business idea.
Top Tips for Starting a Small Debt Collection Agency Business
Before you do anything else, you need to have an understanding of what debt collection is all about. Simply put, this is a way to profit from the large amount of bad debt in the country, either by buying bad loans from banks in trouble, or through collecting debts from people who have credit card, store cards, personal loans or other loans that have put them in debt. Then you will need to do the following:
- Consider your personality type – if you are shy and hate talking on the phone, this business may not be right for your personality. If you enjoy talking to people, have plenty of patience and tenacity, and understand that the best way to collect debts is by being respectful and treating debtors with dignity, you are well on your way to starting a good debt collection agency business. You will also need good investigative skills to help you track down people who escape the system.
- Set up your home office – you will need a few basic things to get started. This includes a computer with internet, a phone line, plenty of paper and pens, a copier and a fax machine. A dedicated phone line is best as this will help you seem more professional. A printer is also a good idea to help you have all the information you need before you start making your calls.
- Start a website – the best way to get exposure and grow your business is to have a website. This needn’t be a fancy website, but you need your name, contact details and information on your services in order to start getting work. A slogan is also a good idea to help people remember your name and company. After all, a business without a website may as well be invisible in today’s online world.
- Consider debt collection software – another option is to use worksheets such as Excel, but if you skills are not up to scratch to allow you to work on spreadsheets, then software is always a good option. This will allow you to keep track of all debtors that you call, while also marking off whether they have paid or how much they have paid.
- Education and research – as the most important tip, this should be done throughout your career to ensure that you are always up to date on new information and regulations. Consider seminars or books such as Bill Bartmann’s Bailout Riches, and do your research online to get the latest on debt collection trends and industry news. You may also need to approach your councillor to get information on licensing and other legal issues.
Donny J. Remis has been researching the huge wealth of advice and wisdom offered by Bill Bartmann, a self-made billionaire who made his fortune through buying bad debt. Get the best advice on how you can start a debt collection agency to profit during economic crises at http://www.debtowner.com