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Written By: Terry Price
Tips for Starting a Credit Coaching Business
In today's economy, the potential client base for credit coaching is huge. Not only has the sub-prime credit meltdown generated tens of thousands of consumers with credit problems, but the law now requires that a consumer obtain counseling to become eligible to file bankruptcy.
Do you have what it takes to be a good credit coach? Think about what qualities make for a successful high school sports coach. Like any coaching position, a credit coach must maintain a positive outlook and constantly encourage their clients to do better. A credit coach must have empathy. That is the ability to understand what your client is going through, and be sympathetic to their situation. Being able to negotiate with your client's lenders and debt collection agencies is very important. After all, that's what you'll spend a lot of time doing. And most importantly, the coach must have the knowledge to make things better.
The knowledge how to fix bad credit can be gained from a variety of sources. There are manuals available that provide proven techniques for credit repair. Some publishers offer home study courses and audio CDs that will give you a good basic education in the field. Of course, nothing beats first-hand knowledge. If you have successfully solved your own credit problems, you are a good candidate for credit coach. If you haven't suffered first-hand from bad credit, you might find a relative or friend on whom you could practice credit coaching skills.
You will need to know about various state laws and requirements pertaining to starting a small business. There may be licenses and certifications involved. Becoming a member of applicable professional organizations may also prove advantageous to you, as it will add to the credibility of your credit repair business.
Creating a business plan will help ensure your credit coaching business will succeed. The plan should include the expenses you will face, such as a new computer and other office supplies, advertising, and even insurance premiums. Then estimate what your income from the business might be. Many credit coaching firms charge an upfront fee of about $100 and then monthly payments of $40 or more. So your annual income per client might be in the range of $500 to $1,000. Multiple that by the number of clients you can service, and you'll determine if your potential income will be sufficient.
You can offer your coaching services on a one-to-one basis, or hold credit counseling classes. Personal coaching can be held at your home, your client's home, or even a quiet restaurant nearby. However, counseling classes will require renting a space, such as a conference room at a local hotel.
Once you are started in your career as a credit coach, here's an important tip: keep your mouth shut. You will be looking at some very private information and hearing some very personal stories from your clients, so you must be the kind of person who is able to maintain confidentiality. Sharing your client's confidential information with others will surely ruin your credibility, and your business.
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