If you are wondering if you should or can open your own collection agency, the answer is yes, you can! There are some things you should do before opening your own agency. You should have experience in the collection industry. You must know what type of business the collection business is before you can understand what you are getting into.
You need to know the day-to-day activities of collections. You need to know the laws in the state you are in and the states you will be collecting in. You want to have experience dealing with people and negotiation skills.
You should also be ready to spend a lot of time getting people interested in your business. If you have worked in the industry for other people, new clients will know you have experience and be more comfortable placing accounts with you. If you don’t have any experience, you need to build credibility so potential clients will know you can do the job and do it well.
Write a business plan. If you are going to borrow money to start your agency you will need a business plan to show the bank. Usually a business plan is made up of:
An Executive SummaryI have an example of a Business Plan and a Marketing Plan in my book, How to make money collecting money, Starting a Collection Agency. You should also include a cover or folder for your business plan. Include a title page and a table of contents. This will be very professional and impress any bank you may present it to.
You should LOVE collection work. You either love it or hate it! If you love it, you will be passionate about making your business work.
Michelle Dunn is the Author of the FREE e-book How to Help You Get Paid, Credit & Collection Forms and Letters. She has also written and published How to Make Money Collecting Money, Starting a Collection Agency that is available from http://www.michelledunn.com and all major bookstores. For more information on Starting a Collection Agency, order her book for immediate delivery.
She is now publishing Become the Squeaky Wheel, A Credit and Collections Guide for Everyone. Look for her boxed set coming out in 2005, which will include, Starting a Collection Agency, The Squeaky Wheel, and a book of collection letters and forms. Dunn publishes her own books through her publishing company, Never Dunn Publishing LLC.
Michelle opened and ran her own very successful collection agency for 8 years. She has over 17 years experience in debt collection.
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