A credit repair service business is a business that helps clients identify errors in their credit reporting and also helps to dispute inaccurate information with credit reporting agencies. These services can be offered in person, online, or over the phone.
It aims to protect credit cards, personal loans, and home mortgages. In essence, credit repair service is all about helping individuals and small businesses handle their credit issues so as to improve their credit ratings.
Statistics have it that in the United States of America, there are about 123,010 registered and licensed credit repair services responsible for employing about 135,701, and the industry rakes in the sum of $6 billion annually. The industry has registered a revenue decline of 5.2 percent per year.
Steps on How to Start a Credit Repair Business in Florida
Table of Contents
Conduct Market Research
Conducting market research before starting any business is key to the success of the business. You must not open a credit repair services business without conducting market research. This is so because market research provides critical information about your business landscape, and informs you how your business is perceived by the clients you want to reach.
It helps you determine who and where your customers are, and which customers are most likely to do business with you. In essence, thorough research will help you understand how your target customers think in order to turn them into regular customers and brand advocates.
a. Who is the Target Market for Credit Repair Business in Florida?
- Blue Chips Companies
- Insurance Companies
- Courts
- Corporate Organizations
- Religious Organizations
- Politicians
- The Government (Public Sector)
- Schools
- Sport Organizations
- Entrepreneurs and Start-Ups.
b. Is Credit Repair a Profitable Business in Florida?
Yes, a credit repair services business is a profitable business. Players in the industry generated over $3.4 billion in 2021.
c. Are There Existing Niches in the Industry?
Yes, there are niche areas in the credit repair services business. They include;
- In-person
- Online or over the phone
d. Who are the Major Competitors?
- Florida Credit Repair Company
- Great American Credit Repair Company
- Credit360 Credit Repair Services
- Miami Credit Repair Company
- Clean Credit Repair Company
- Supreme Credit Repair & Debt Settlement
- Credit Repair Systems Inc
- Florida Credit Repair Restoration
- Credit Rx America Credit Repair
- Velocity Credit Repair Company – Boca Raton
- OpenSky Credit Repair
- M Lockhart Credit Repair Services
- The Credit Pros
- Trinity Enterprises LLC
- Miami Credit Fix
- JW Credit Repair
- 5 Star Credit Repair Group Inc.
- Ovation Credit Services
- Quick Credit Repair LLC
- Jacksonville Credit Repair Pros.
e. Are There County or State Regulations or Zoning Laws for Credit Repair Business in Florida?
Yes, there are county or state regulations or zoning laws for credit repair services businesses, and players in this industry are expected to work with the existing regulations governing similar businesses in the county or state where the business is domiciled.
This means that, at any point in time, the county office can determine whether the credit repair business meets the zoning rules of the community. They also ensure that all credit repair businesses are properly licensed by county or state agencies.
f. Is There a Franchise for Credit Repair Services Business?
Yes, there are franchise opportunities for credit repair services business. Here are some of them;
- Great American Credit Repair Company
- Credit360 Credit Repair Services
- Miami Credit Repair Company
- Clean Credit Repair Company
- Florida Credit Repair Company
- Velocity Credit Repair.
g. What Do You Need to Start a Credit Repair Services Business in Florida?
- A feasibility report
- Business and marketing plans
- Business licenses and permits
- Office space
- Computers, laptops, and servers
- EIN (Employer Identification Number)/Federal Tax ID Number
- A corporate bank account
- Software apps
- Competent employees
- Startup capital
Memorable Business Name ideas for Credit Repair Services Business
When looking to start a business, before you can begin to file the necessary documents with the constituted authorities or start your website, it is necessary that you come up with a name that you will be recognized with. It is essential that the name you come up with can easily be pronounced, is unique and easily memorable.
Some of the catchy business name ideas suitable for a credit repair business are;
Creative Credit Repair Business Name ideas
- Andrew Mackson© Credit Repair Services, Inc.
- Thomas Lindsay® Credit Repair Services, LLC
- Boynton Beach© Credit Repair Services, Inc.
- Matt Phills® Credit Repair Services, Inc.
- MJ Greenwood™ Credit Repair Services, Inc.
- Wesley Chapel™ Credit Repair Services, LLC.
- Doral Lauderhill© Credit Repair Services, LLC
- Poinciana Leo® Credit Repair Services, Inc.
- Hilary Jorgen© Credit Repair Services, Inc.
- Kelly Gray© Credit Repair Services, Inc.
- Mike Kester® Credit Repair Services, Inc.
- Union Group® Credit Repair Services, Inc.
- TM Morris® Credit Repair Services, Inc.
- Sanford Wellington® Credit Repair Services, Inc.
- Nathan Fred® Credit Repair Services, Inc.
- Rowland Hyden© Credit Repair Services, Inc.
- Clem Weston™ Credit Repair Services, LLC
- Access Group® Credit Repair Services, Inc.
- West Plum® Credit Repair Services, Inc.
- Nile Group™ Credit Repair Services, Inc.
Register Your Business
a. What Type of Business Structure is Best for Credit Repair Services Business in Florida?
There are several options when it comes to the business structure of a credit repair business. The one most players in this line of business consider is an LLC. This is considered because providers want to protect themselves from lawsuits.
b. Steps to Form an LLC
- Choose a name for your LLC
- File articles of organization
- Choose a registered agent
- Decide on member vs. manager management
- Create an LLC operating agreement
- Comply with other tax and regulatory requirements
- File annual reports
c. What Type of License is Needed to Open a Credit Repair Services Business in Florida?
- General Business License
- Zonal Permits (Applicable in some cities)
- Signage Permit
d. What Type of Certification is Needed to Open a Credit Repair Services Business in Florida?
- The Board Certified Credit Consultant
- The Certified Credit Score Consultant
e. What Documents are Needed to Open a Credit Repair Services Business in Florida?
These are some of the basic legal documents that are required if you want to run a credit repair services business in Florida;
- DBA
- EIN
- Business and liability insurance
- Federal Tax Payer’s ID
- State Permit and Building Approval
- Certificate of Incorporation
- Business License
- Business Plan
- Employment Agreement (offer letters)
- Operating Agreement for LLCs
- Insurance Policy
- Online Privacy Policy Document
- Contract Document
- Company Bylaws
- Memorandum of Understanding
f. Do You Need a Trademark, Copyright, or Patent?
If you are considering starting a credit repair services business, there may not be a need to file for intellectual property protection or trademark. The nature of the business makes it possible for you to successfully run it without having any cause to challenge anybody in court for illegally making use of your company’s intellectual properties.
Cost Analysis and Budgeting
a. How Much Does It Cost to Start a Credit Repair Services Business in Florida?
When it comes to starting a credit repair services business, the startup costs could range from $5,000 to over $150,000 depending on how big you want to start the business. Please note that this amount includes the salaries of all the staff for the first month of operation.
b. What are the Costs Involved in Starting a Credit Repair Services Business in Florida
- The total fee for registering a business in the United States of America – $750.
- Legal expenses for obtaining licenses and permits as well as the accounting services (software, P.O.S machines, and other software) – $8,300.
- Marketing promotion expenses for the grand opening of the credit repair services business in the amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of $3,580.
- The total cost for hiring a business consultant including writing a business plan – $2,500.
- The total cost for the purchase of insurance (general liability, workers’ compensation, and property-casualty) coverage at a total premium (initial (first) premium) – $4,400.
- The cost for renting or leasing operational office space – $45,000.
- Operational cost for the first 3 months (salaries of employees, payments of bills, and software renewal fees et al) – $35,000
- The cost for the purchase of software apps: $5,000
- The cost for store equipment (cash register, security, ventilation, signage) – $1,750
- The cost of purchase and installation of CCTVs: $2,000
- The cost of launching a website: $2000
c. What Factors Determine the Cost of Opening a Credit Repair Services Business in Florida?
- The size of the credit repair services business
- The choice of location
- The required licenses and permits
- The type of facility
- The additional services offerings
- The cost of hiring and paying a business consultant and attorney
- The cost for branding, promotion, and marketing of the credit repair services business
- The cost of furnishing and equipping the credit repair services business facility
- The cost of the insurance policy covers
- The cost of registering the business
- The cost of recruiting and training your staff
- The cost of the purchase and customizing of uniforms
d. Do You Need to Build a Facility? If YES, How Much Will It Cost?
You don’t need to build a facility for your credit repair services business because this business can be operated from a leased or rented office space or home office.
e. What are the Ongoing Expenses of a Credit Repair Services Business?
- Utility bills (internet subscriptions, phone bills, signage, and software renewal fees et al)
- Rent
- Employees salaries
f. What is the Average Salary of your Staff?
- Chief Executive Officer (Chief Investigator) – $45,000 Per Year
- Human Resources and Admin Manager – $36,000 Per Year
- Credit Repair Expert – $36,000 Per Year
- Accountant – $32,000 Per Year
- Marketing Sales Officer – $32,000 Per Year
- Client Service Executive (Help Desk Office) -$28,000 Per Year
g. How Do You Get Funding to Start a Credit Repair Services Business in Florida?
- Raising money from personal savings
- Raising money from investors and business partners
- Sell shares to interested investors
- Apply for a loan from your bank
- Pitch your business idea and apply for business grants and seed funding from the government, donor organizations, and angel investors
- Source for soft loans from your family members and friends
Write a Business Plan
a. Executive Summary
Shantel Parker© Credit Repair Services, Inc. is a registered and licensed credit repair services business. The business will be based in West Palm Beach, Florida and we were able to secure a well-positioned and standard office facility in one of the most patronized office complexes in West Palm Beach.
We are well equipped to provide top-notch credit repair services at different locations throughout West Palm Beach and beyond. It is our goal to offer low rates, reliable and fast service to our valued customers.
At Shantel Parker® Credit repair services, Inc., our client’s best interest would always come first, and everything we do will be guided by our values and professional ethics. We will ensure that we hire professionals who are experienced in a wide variety of credit repair services.
b. Products and Service
- Credit repair consultation
- Dispute processing
- Cease and desist collections processing
- Settlement assistance
- Credit reestablishment
- Other financial consulting and advisory-related services
c. Mission Statement
Our mission is to provide professional and trusted credit repair services that assist individuals, businesses, and non-profit organizations. We want to position the business to become the leading brand in the credit repair services industry in West Palm Beach, and also to be amongst the top 5 credit repair services outfits in Florida within the first 5 years of operation.
Vision Statement
Our vision is to build a credit repair services business that will become the number one choice for individuals, families, and corporate clients in West Palm Beach, Florida.
d. Goals and Objectives
The goals and objectives of the credit repair services business are to help individuals and small businesses handle their credit issues so as to improve their credit ratings.
e. Organizational Structure
- Chief Executive Officer (Chief Investigator)
- Human Resources and Admin Manager
- Credit Repair Expert
- Accountant
- Marketing Sales Officer
- Client Service Executive (Help Desk Office)
Marketing Plan
a. SWOT Analysis
Strength:
- Effective structure in place
- Highly experienced and qualified employees and management
- Reliable software app
- Support from relevant organizations
Weakness:
- Financial constraints
- A new business that will be competing with well-established credit repair services businesses
- Inability to retain our highly experienced and qualified employees longer than we want
Opportunities:
- Partnerships and mergers between established companies
- Good support structure for credit repair services businesses in Florida
Threat:
- The arrival of a new credit repair services business within our market space
- Unfavorable government policy and regulations
- Differences in management and culture are the biggest barriers to integrating credit repair services business startups into traditional companies
- Liability problems
- Continuously changing consumer demands especially as it relates to how they expect credit repair services businesses to serve them.
b. How Do Credit Repair Services Businesses Make Money?
Credit repair services businesses make money by charging clients for the following services;
- Credit repair consultation
- Dispute processing
- Cease and desist collections processing
- Settlement assistance
- Credit reestablishment
- Other financial consulting and advisory-related services
c. Payment Options
- Payment via bank transfer
- Payment with cash
- Payment via credit card/Point of Sale Machines (POS Machines)
- Payment via online bank transfer
- Payment via check
- Payment via mobile money transfer
d. Sales & Advertising Strategies
- Introduce your credit repair services business and the services your offer by sending introductory letters alongside your brochure to corporate organizations, small business owners, landlords, and other key stakeholders throughout the city where your credit repair services business is located.
- Advertise on the internet on blogs and forums, and also on social media like Twitter, Facebook, and LinkedIn to get your message across
- Create a basic website for your business so as to give your business an online presence
- Directly market your services
- Advertise your business in community-based newspapers, local TV and radio stations
- List your business on yellow pages ads (local directories)
- Encourage the use of word-of-mouth marketing (referrals)
Financial Projection
a. How Much Should You Charge for your Product/Service?
Credit repair companies use a subscription-based model, which ranges from $50-$150 per month, depending on the specific package. You may also need to pay a startup fee (sometimes called a first-work fee), which can be the same price as a full-month subscription. Setup fee. $99 to $195; Monthly fee. $79.99 to $119.99.
b. How Much Profit Do Credit Repair Services Business Owners Make a Year in Florida?
Credit repair business owners in Florida usually make between $40,000 to over $130,000 per year.
c. What Factors Determine the Amount of Profit to Be Made?
- The capacity of the credit repair services business
- The location the credit repair services business is covering
- The management style of the credit repair services business
- The business approach of the credit repair services business
- The advertising and marketing strategies adopted by the credit repair service
- The number of years the credit repair services business facility is in business
d. What is the Profit Margin of a Credit Repair Services Business?
The profit margin of a credit repair services business is not fixed; it will usually depend on some factors that are unique to the type of service offerings. It could range between 40% to 75%.
e. What is the Sales Forecast?
Below is the sales forecast of a credit repair services business. It is based on the location of the business and other factors as it relates to such startups in Florida;
- First Fiscal Year (FY1): $250,000
- Second Fiscal Year (FY2): $380,000
- Third Fiscal Year (FY3): $400,000
Set Up your Shop/Office
a. How Do You Choose a Perfect Location for Credit Repair Services Business in Florida?
- The demography of the location
- The demand for the services of credit repair services in the location
- The purchasing power of businesses and residents of the location
- Accessibility of the location
- The number of credit repair services businesses in the location
- The local laws and regulations in the community/state
- Traffic, parking and security et al
b. What City is Best to Open a Credit Repair Services Business in Florida?
- Tallahassee, Florida
- Pensacola, Florida
- Bradenton, Florida
- Jacksonville, Florida
- Pompano Beach, Florida
- Hialeah, Florida
- Riverview, Florida
- Fort Lauderdale, Florida
- Miami, Florida
- Saint Cloud, Florida
c. What Equipment is Needed to Operate a Credit Repair Services Business?
You would need software applications, computers/laptops, internet facilities, telephone, fax machine, and office furniture. All these can be gotten fairly used.
Hire Employees
When hiring employees for a standard credit repair services business, you should make plans to hire a competent Chief Executive Officer (Chief Investigator), Human Resources and Admin Manager, Account Manager, Marketing and Sales Officer, Credit Repair Experts, and Client Service Executive (Help Desk Office).
Launch the Business Proper
In recent times, no credit repair services business opens its business without first organizing an opening party to officially launch the business. You can do a soft opening party if you are operating on a low budget or you go for a grand opening party for all and sundry. The bottom line is that, with a proper launching, you will officially inform people in your city that your credit repair services business is ready services.
a. What Makes a Credit Repair Services Business Successful?
- Ability to identify good deals
- Willingness to take chances
- Tenacity
- Customer-centric business approach
- Good marketing and sales approach
- Strong vision
- Passionate leadership
- Innovativeness
b. What Happens During a Typical Day at a Credit Repair Services Business?
- The office is open for the day’s work
- The to-do list is reviewed
- Employees go straight to their job description (working with clients to review and repair their credits)
- Marketers go out to market the service offerings of the company
- Reports are written and submitted to superior officers
- The business is closed for the day
c. What Skills and Experience Do You Need to Build a Credit Repair Services Business?
- Excellent investigative skills
- Excellent marketing skills
- Excellent computer skills
- Ability to pay attention to details
- Good managerial and human development skills
- Good accounting and bookkeeping skills
- Visionary leadership
- Team-building and interpersonal skills
- Excellent communication and negotiation skills
- Organizational skills
- Problem-solving ability
- Good supervisory skills
- Experience in managing credit repair business
- Experience in business administration
- Experience in handling relevant software