How to Start a Debt Counseling Business in Six Phases
When you want to know how to start a debt counseling business, the NFEC has the answer. Here the organization lays out the six steps in the process that can lead you down the road to becoming a capable entrepreneur with a thriving business.
If you feel called to help other people increase their financial wellness, find out how to start your own credit and debt counseling service and you’ll be well on your way. You will be filling an important gap in the marketplace, doing well for yourself while helping others achieve financial health at the same time.
Phase 1 – Get Trained and Certified
The first step in how to start a debt counseling business is to get training and obtain certification. This phase means more than just studying money management topics. It requires gaining skills and knowledge related to behavior change, psychology, instructional methods, industry regulations, and counseling best practices. That’s why you need to pursue a certification program in financial counseling.
Once you finish the coursework and other requirements and get certified, you show the world that you have what it takes to become a qualified debt counselor. You will have complied with standards for the industry, which earns your clients’ trust and confidence.
Phase 2 – Gain Some Experience
You may graduate from the best training program on earth, but you won’t truly know how to start a debt counseling business until you’ve taken what you learned into practice. Under qualified supervision, getting on-the-job training is essential. You need to rehearse your skills with real clients in real-world situations.
Every client you counsel will have a singular set of emotional attachments, behavioral habits, and situations related to money. That fact sometimes makes the job of a certified debt counselor difficult, and is the reason why you need to work with a variety of clients from different backgrounds to sharpen your skills.
Your initial counseling endeavors should be performed under the watchful eye of a supervisor who has considerable experience in the counseling field. Your mentor should track your counseling work and make suggestions until you have sufficient experience to strike out on your own.
Phase 3 – Establish Systems and Gather Resources
Once you’ve become educated, gained experience, and produced case studies, you’ve laid the foundation of how to start your own credit and debt counseling service. The next phase involves establishing streamlined systems and processes and building a library of resources you can share with your clients.
The organizational systems you need include ways to handle client communications and relations in a timely fashion. Locate robust software that organizes all the data that go into a client’s financial profile – banking and investment accounts, credit history, insurance policies, etc. – on a single platform.
You’ll stand out above the average if you give clients a written, personalized financial plan – a service few counselors offer. Use your software to generate this report and to produce ongoing progress reports so clients can see their progress.
Phase 4 – How to Start a Debt Counseling Business
You may be studying how to start a debt counseling business, but also consider whether you might begin your journey employed by a company. Working for someone else to start will give you experience, which may be a constructive step that supports your future entrepreneurship.
Regardless whether you launch your own business right away or look for credit counselor or debt counselor jobs first, you should lay out a clear plan to follow toward your long-term goal. Start by documenting client outcomes and building out case studies that demonstrate your skill. Becoming an effective debt counselor requires demonstrating your impact, showing prospective clients and employers alike that you’re competent and results-oriented.
Phase 5 – Creating an Online Image, Raising Awareness, and Marketing
Strategic business planning is critical for any entrepreneur, and knowing how to start a debt counseling business is no exception. You can stay on top of the game by putting a strong business model into effect early on, and a professional online presence is a big piece of your strategy.
View your online image as your storefront – it’s what people see first when they’re searching for someone to help them resolve their credit card debt. Develop a professional-quality website with a client acquisition feature, make contributions to blog posts and articles, seek media coverage, and put an automated system into place for prospective client communications.
Your marketing techniques will depend upon the audience you wish to attract (individual clients, corporations, or community organizations). Current technological platforms offer you connections with clients in your local region at little or no cost. Some examples may be attending events or taking advantage of speaking opportunities, pay-per-click promotions, referrals, and promotions available through the NFEC.
Phase 6 – Provide Stellar Service with Measurable Results
In the final phase of how to start your own credit and debt counseling service, you’ll be helping clients reach their goals – keeping them on track after they experience setbacks, and urging them onward when they have momentum.
Sometimes there’ll be a client you’re unable to help. That might be discouraging. Balance out your discouragement by remembering the rewarding feeling you get when a client does succeed. That client who goes from the depths of financial woes to the thrill of becoming debt-free – draw on that experience as motivation to renew your commitment to people’s success. Celebrate their accomplishments while you remain dedicated to constantly refining your skills.