Thinking about opening a personal financing business? We tell you what you need to know to get started.
(article continues below)
How to Create a Winning Personal Financing Company Business Plan
If you've done your homework, you already know that writing a business plan is the most critical thing you can do for your company.
Although it might seem like an unnecessary formality, your personal financing company's business plan is a document that will shape your goals and strategies on a go-forward basis.
Here's something else you should know: Business plans help prevent key startup mistakes. While other startup personal financing businesses are floundering, your business will be on course for growth and profits, protected by a carefully conceived plan that reflects real world business conditions and your business's unique characteristics.
Evaluate the Competition
Well in advance of opening a personal financing business in your town, it's a good idea to find out what the competition looks like. We've provided the link below to help you find competitors near you. Just enter your city, state and zip code to get a list of personal financing businesses in your community.
How tough is the competition in the market you are considering? If the competition is too tough, you may need to think about starting the business in a different area or even start a completely different business instead.
Studying the Market
If you are seriously contemplating launching a personal financing business, it's a wise move to talk to somebody who is already in the business. It's very unlikely that the local competition will talk to you. It'd be crazy for them to teach you the business.
However, an entrepreneur who owns a personal financing business in a location that is not competitive to you will be much more likely to talk with you, provided that you won't be directly competing with them. Indeed, many experienced entrepreneurs enjoy offering advice to startup entrepreneurs. Our estimate is that you may have to contact many business owners to find one who is willing to share his wisdom with you.
How would you find an entrepreneur who is running a personal financing business who is willing to advise you because you live in different cities?
Simple. Let your fingers do the walking by using the link below.
Acquisitions vs. Startups
Unfortunately, many inexperienced personal financing business entrepreneurs approach ownership with the mistaken idea that a startup is their only option when they could also pursue a business acquisition.
Unless you have compelling reasons to launch a new business, buying an existing personal financing business may be the better choice.
An acquired personal financing business is a known quantity; a startup is less certain because its forecasts depend on estimated outcomes. The key is to locate a business-for-sale that closely matches your ownership philosophy and professional objectives.
Franchising May Be a Better Way to Go
If you don't want to have to do everything on your own, you ought to check into going the franchising route.
Prior to making the decision to open a personal financing business, you ought to investigate whether buying a franchise could make your life much easier.
The link below gives you access to our franchise directory so you can see if there's a franchise opportunity for you. You might even find something that points you in a completely different direction.
These additional resources regarding getting started as an entrepreneur may be of interest to you.
If you sell to personal financing businesses, you're in the wrong place. These resources are more appropriate for you:
If you are still exploring all of your options, please browse our directory of guides below.