One of the best home businesses that you can run is a debt collection business. What makes debt collection such a profitable business is the fact that there are many small businesses out there who have many collectibles from other people, but who do not have the time to collect the money. You can do it for them instead, and get a living out of it. Here’s how.
- Plan. Keep in mind that the actual debt collecting is the relatively easy task when it comes to starting your own debt collecting business. The bulk of your work will have to do with getting the attention of small businesses that need your services. This includes advertising and marketing yourself. In order for you to be able to do this, you need to make sure that you have a business plan that clarifies the steps that you need to take in order to get your business launched. Apart from making a business plan, also work out the details of your company, such as your company name, your logo, your business card, et cetera. Even though debt collections can be a home based business, you still need to make sure that you have these.
- Clients. Next, you will need to scout for clients who may need your services. You can advertise later on, but during the first few months of operation, you need to manually search for clients. This is because you still have not established your reputation as a debt collector. You will have to work to get the clients. Go to town and list down all the small and medium scale businesses. You can also expand your area to other nearby towns. Small businesses are the best target, because they usually have easy debt collection cases, and usually cannot afford the services of larger debt collection companies.
- Brochures. Once you have a list of all the small businesses who might need your services, you will need to prepare a brochure so that you will have something to give them once you come in for a visit. The brochure must be beautifully and professionally designed, and must contain a list of all your services, as well as why you are the person who is fit for the job.
- Introduction letter. Apart from making a brochure, also make sure that you have an introduction at the ready. Your introduction letter should explain your purpose, which is to offer your services. Next, elaborate on the different services that you offer, as well as why the small businesses need this service, and why they should choose you. You can mail this to the list of clients that you are targeting. Be sure to include your company logo and to include contact information.
- Meetings. After you have sent your introduction letters to the various businesses, wait for about a week and then given them a follow up call. Ask that they arrange a meeting with you, and the go to the meeting to personally get the clients to approve of your services. Once you have gotten your clients, also ask them to recommend you to other businesses that they might know. When working with small businesses, remember that the best way to advertise yourself is through connections and your network.
Once you have clients, all you need to do is to find out the list of people with debts, and start collecting the debts for the small businesses that you are working for.