How to Start a Credit Monitoring Business
Companies with strong business credit files can have many benefits, because a business credit file helps convey a company’s reputation. For small businesses and startups in particular, establishing a reputation is a daunting task, but by establishing the reputation of a company with a strong business credit history, entrepreneurs can solve many problems at the same time. In addition to helping establish a good reputation, a construction company credit file can also assist in financing and contracting efforts, as well as help manage business risk and cash flow. So now we will talk about how to start a credit monitoring business.
How credit monitoring works
If you believe the hype and headlines, identity theft is a big problem in America. Enterprising identity thieves are examining divers looking for unrestricted bank statements and sending fraudulent “phishing” emails to trick you into revealing your Social Security number. The truth is much less exciting. While identity theft undoubtedly exists, it is a much smaller problem than fearful people would have believed. Annual Report on Identity Fraud, only 3.6 percent of Americans suffered from identity fraud in 2013, and most of those cases involved stolen credit card numbers.
- Credit surveillance was a $ 650 million a year industry in the United States in 2009 and has only grown since. Credit monitoring services promise to keep tabs close to your credit report and alert you to changes in your credit score. What these companies don’t tell you is that they are terrible ways to inform you of changes to your credit report and credit score to protect you from identity theft.
- Credit monitoring services would not protect target consumers from this massive security breach. They would not even have informed victims of unusual activity on their credit cards, because that credit report does not contain that information in real time. The only value of credit monitoring in a situation like hacking would be to alert victims to new credit accounts opened in your name without their knowledge.
How to Start Credit Monitoring Business
Create a business plan
Create a roadmap to achieve measurable growth and impact goals in finance, sales, marketing and operations. The “start first, think later” method is not a good idea when starting a new business of any kind. Before you get to your first prospect, make sure you have a well-developed business plan. You must cover the 4 basic parts of starting a new business:
This is a great opportunity to contact other small business owners for advice and to build relationships. Keep in mind that you don’t have to spend money to do marketing.
Identify your niche
Identify your target customer: let some of them get what you want. Before you begin, you must identify the types of leads you hope to target. This will affect your affiliation, marketing and operations strategies. This will give you a target range so you can easily decide who is and who is not a potential customer. Clients are a lost game that you cannot avoid to achieve your goals.
Delegate whenever possible
Learn to pass on some responsibilities and administrative work to the team so that you are free to do what you do best. It can be difficult for small business owners to give up control. After all, they launched this business individually from the bottom up. However, you can’t do it all. Fatigue will lessen and you will start letting things fall through the cracks. Additionally, your business will be strengthened by working with people with different skill sets. If you are a great long-term planner but are not that good on a day-to-day basis, hire an operations guru to help you with the details.
Build affiliate relationships
Building early alliances in the financial services area is a win-win situation, and both have satisfied customers. Experts agree that one of the fastest ways to get customers and scale your business is to build strong affiliate associations. Mortgage brokers, car dealers, and other lenders are excellent referral partners. They want their business to be successful so they can make a sale to a customer who would otherwise have to. Focus on building these relationships in the early stages of launching your business.
Create a reflective pricing structure
Start with a pricing structure that will keep you floating financially in the long term. Many people decide on a pricing structure based on the prices of their competitors. This is often unsuccessful as it does not consider what will really make a business profit. Calculate your acquisition cost based on the time, money, and resources you spent obtaining lead. Base your audit fee on this figure so you know it will always start with a profit.
Educate your clients.
If you want lasting results, train your clients on how credit works and help them change their financial power with better credit habits. Your clients expect you to be an expert. Let’s face it, repairing credit “work” is insignificant. Once a client is configured in the system, it takes approximately 5 minutes of work per month to manage each client.
Before you go, I hope this how to start a credit monitoring business is helpful for you.