Judgment recovery is a means of helping plaintiffs recover their money from defendants who run away from their obligations. By starting a business in this collection industry, you get the chance to have a profitable income by simply finding court money judgments. Since you do not have a license to conduct investigation, this can be a great way of pursuing your dream of becoming a private investigator. The following steps will guide you on how you can start a business in this industry.
1. Get the required training for recovering judgment. Recovering court money judgments is not that simple. This is why you need to acquire the necessary training before you can start your own business in this field. The best way for you to do this is apply for membership from the National Judgment Network. This organization has been helping people like you obtain the necessary skills and knowledge essential in establishing your judgment recovery business.
Applying for membership and obtaining training from NJN is simple. Just visit their website and proceed to their "Entrepreneur" webpage. The site will provide you with the steps on how to join the organization.
2. Study state and federal regulations. Since you will act as a debt collector for your client, you need to understand the rules and regulations regarding collecting court money judgment. Check and study the Fair Debt Collection Practices Act. This Act provides information on the proper way of collecting debt. Check your state's law regarding collecting debt. Your state might have stricter rules regarding this.
3. Get the required financing. Although this is just a home-based business, you still need to prepare yourself for the startup costs of establishing this business. Aside from the membership fee and training fee, you also need money to set up your office to be able to work efficiently. Your office should have a high-speed Internet connection, business phone and other amenities necessary to contact your clients. You also need access to various databases for you to conduct your investigation effectively.
4. Register your business. There are different business structures. Before you can register your business, figure out whether you will register your business as Limited Liability Company (LLC), a corporation or a general partnership. After registering, get a license for collecting debt.
5. Find potential clients. Since the public can view court cases, you can easily search for potential clients by getting a list of the plaintiffs who might have problem recovering their money. Once you have a list of potential clients, send out a mass mail describing your business and your business proposal. Set up a website and establish a network with people connected in the industry.
6. Get necessary tools in investigating defendants. Part of collecting court money judgment is pursuing defendants and getting information about them. For this to work, you need to subscribe to a background check company.
These are the steps on how to start a judgment recovery business. This business is a great opportunity for people who want to become a private investigator. Aside from earning money, this is a good way of helping people while developing your investigative skills.