Credit Repair Business Plan Template

Credit Repair Business Plan

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We have helped over 1,000 entrepreneurs and business owners create business plans and many have used them to start or grow their Credit Repair businesses.

Below is a template to help you create each section of your Credit Repair business plan.

Executive Summary

Business Overview

Lincoln Credit Repair is a new credit repair company located in Lincoln, Nebraska. We offer a full suite of credit repair services to the residents of Lincoln who are struggling financially and need to turn their credit around. Some of the services we offer include a free consultation, identity theft protection, credit disputes, and legal representation. At Lincoln Credit Repair, we know that many of our clients feel overwhelmed by their financial and credit troubles. Our mission is to help in any way possible to repair their credit and turn their life around.

Lincoln Credit Repair is founded by Gary Smith, who has been a credit repair attorney for two decades. As such, he has extensive experience helping hundreds of clients repair their credit and turn their life around. After decades of work, he was tired of working for large firms that didn’t care about their clients nor offer personalized, client-oriented service. His mission with Lincoln Credit Repair is to make the client the central focus, so we can provide the exact services they need to repair their credit.

 

Product Offering

Lincoln Credit Repair offers a full suite of credit repair services to restore our clients’ credit. These services include sending cease and desist letters, providing legal representation, disputing credit reports, providing identity theft protection, and more. The exact services we provide will depend on each client’s needs as well as what they are willing to pay for. Every potential client gets a free 30-minute consultation that will help us determine what services they need.

 

Customer Focus

Lincoln Credit Repair will serve the residents of Lincoln, Nebraska. We expect that most of our clients will have a very low credit score (below 600) and earn less than the local median income. Traditionally, most people seek credit repair services in the 35-55 age range, as this is the age range when many significant life and financial changes occur.

 

Management Team

Lincoln Credit Repair is run by Gary Smith. Gary is an experienced credit repair attorney with over two decades of experience. He has helped hundreds of clients repair their credit and turn their life around. However, Gary has spent his career working for large firms that focus on profits over people. As such, they charge high prices and don’t cater their services to each client’s needs. Gary is establishing Lincoln Credit Repair as a small firm that caters to the needs of the client and offers the best credit repair services in the local market.

 

Success Factors

Lincoln Credit Repair will be able to achieve success by offering the following competitive advantages:

• Friendly, knowledgeable, and qualified team of credit repair professionals
• Wide range of credit repair services that are personalized to each client
• High-quality services for an unbeatable price

 

Financial Highlights

Lincoln Credit Repair is seeking $235,000 in debt financing to launch its credit repair company. The funding will be dedicated toward securing the office space and purchasing office equipment and supplies. Funding will also be dedicated toward three months of overhead costs, marketing costs, and working capital. The breakout of the funding is below:

• Office space build-out: $25,000
• Office equipment, supplies, and materials: $10,000
• Three months of overhead expenses (payroll, rent, utilities): $150,000
• Marketing costs: $25,000
• Working capital: $25,000

The following graph below outlines the financial projections for Lincoln Credit Repair.

 

Company Overview

Who is Lincoln Credit Repair?

Lincoln Credit Repair is a new credit repair company located in Lincoln, Nebraska. We know that many people in the Lincoln area have lived through significant financial challenges that have destroyed their credit. Our mission is to help these individuals repair their credit and get their lives back on track.

 
To do this, we offer several services. Individuals can hire us to dispute errors in credit reports, provide identity theft protection, write cease and desist letters, and provide other legal representation. All potential new clients are offered a free 30-minute consultation so we can determine exactly which services will help them the most.

Lincoln Credit Repair is founded by Gary Smith, who has been a credit repair attorney for two decades. As such, he has extensive experience helping hundreds of clients repair their credit and turn their life around. After decades of work, he was tired of working for large firms that didn’t care about their clients nor offer personalized, client-oriented service. His mission with Lincoln Credit Repair is to make the client the central focus, so we can provide the exact services they need to repair their credit.

 

Lincoln Credit Repair’s History

Gary incorporated Lincoln Credit Repair as an S Corporation on July 1st, 2023. Since incorporation, the company has achieved the following milestones:

• Found a studio space and signed a Letter of Intent to lease it
• Developed the company’s name, logo, social media accounts, and website
• Determined equipment and fixture requirements

 

Lincoln Credit Repair’s Services

Lincoln Credit Repair will offer a full suite of credit repair services to its clients. Each client can choose which services they want to pay for based on their needs and budget. Some of the services we offer include:

• Identity theft protection
• Credit report disputes
• Legal representation
• Budgeting

All new clients get a free 30-minute consultation to help us determine which services they need. All services are charged monthly.

 

Industry Analysis

Revenue for the credit repair industry is expected to grow over the next several years. According to MarketWatch, the global credit repair industry was worth $6.6 billion in 2021 and is expected to exceed $7.4 billion in 2027. Credit repair services are in high demand as many challenges can lead to a person’s credit getting ruined. Divorce, identity theft, job loss, and credit report errors are all common reasons why thousands of credit scores tank yearly.

There are several factors influencing the industry’s growth. First of all, rising interest rates affect consumers’ ability to service their debt quickly. The interest can easily become overwhelming, and many people seek credit repair and other financial services for help. Similarly, the rise in mortgage rates will lead to a higher rate of mortgage defaults, which means many homeowners will need credit repair services. Finally, the rise in cybersecurity attacks and identity theft/fraud has led to many people needing to dispute errors in their credit reports and restore their credit history. Since identity thefts have been increasing over the past several decades, we expect this to become a significant issue for the industry in the near future.

 

Customer Analysis

Demographic Profile of Target Market

Lincoln Credit Repair will serve the residents of Lincoln, Nebraska. We expect that most of our clients will have a very low credit score (below 600) and earn less than the local median income. Traditionally, most people seek credit repair services in the 35-55 age range, as this is the age range when many significant life and financial changes occur.

The precise demographics for Lincoln, Nebraska, are as follows:

	Total	Percent
Total population	1,680,988	100%
Male	838,675	49.9%
Female	842,313	50.1%
20 to 24 years	114,872	6.8%
25 to 34 years	273,588	16.3%
35 to 44 years	235,946	14.0%
45 to 54 years	210,256	12.5%
55 to 59 years	105,057	6.2%
60 to 64 years	87,484	5.2%
65 to 74 years	116,878	7.0%
75 to 84 years	52,524	3.1%

 

Customer Segmentation

Lincoln Credit Repair will primarily target the following customer profiles:

• Individuals with poor credit (score under 600)
• Middle age residents and couples
• Individuals and families earning less than the local median income

 

Competitive Analysis

Direct and Indirect Competitors

Lincoln Credit Repair will face competition from other companies with similar business profiles. A description of each competitor company is below.

 

The Credit People

The Credit People is a popular credit repair company that specializes in helping individuals improve their credit scores and overall credit health. They offer personalized solutions, including credit report analysis, dispute resolution, and guidance on building a positive credit history. The Credit People has three subscription plans, including a standard plan, a premium plan, and a premium flat rate plan. The premium plans offer a full suite of services, while the standard plan offers only basic credit dispute services. With a commitment to transparency and customer satisfaction, the Credit People maintain open communication throughout the process and offer satisfaction guarantees.

 

Lexington Law

Lexington Law is a prominent credit repair company known for its expertise in helping individuals improve their credit profiles. They offer comprehensive services, including credit report analysis, identification and dispute of inaccuracies, and personalized strategies for credit improvement. They also offer a free consultation and credit assessment to help clients see which services are best for them. Lexington Law is one of the most popular and prominent credit repair firms in the industry. As such, we expect them to be our biggest competitor.

 

The Credit Pros

The Credit Pros is a reputable credit repair company that offers a full suite of credit repair services as well as other financial and wealth management services. They have three membership plans: money management, prosperity, and success. Customers who get the most basic plan are given standard services, such as a budgeting system, dark web monitoring, and TransUnion alerts. Customers who get the more premium plans will have access to several bureau reports, creditor interventions, cease and desist letters, and letters of reference. The Credit Pros is also popular for its free consultation services as well as its low and transparent pricing. Since they are the most affordable competitor, we expect to compete with Credit Pros heavily for customers looking for affordable credit repair services.

 

Competitive Advantage

Lincoln Credit Repair will be able to offer the following advantages over the competition:

• Client-oriented service: Lincoln Credit Repair is committed to providing client-oriented service that offers personalized services for every client.
• Management: Gary Smith has been extremely successful working in the credit repair sector and will be able to use his previous experience to grant his clients extensive credit repair services. His unique qualifications will serve customers in a much more sophisticated manner than Lincoln Credit Repair’s competitors.
• Affordability: Many people who hire credit repair services do not have much disposable income to spend on these services. Many competitors are too expensive for our target market, so they end up struggling with their poor credit alone. Lincoln Credit Repair will provide its services at a much more affordable rate than the competition in order to help as many local residents as possible.

 

Marketing Plan

Brand & Value Proposition

Lincoln Credit Repair will offer a unique value proposition to its clientele:

• Qualified and compassionate team that is committed to helping our clients.
• Unbeatable pricing for essential, life-changing services.
• Large firm experience in a small firm environment.

 

Promotions Strategy

The promotions strategy for Lincoln Credit Repair is as follows:

Word of Mouth/Referrals

Gary Smith has built up an extensive list of contacts over the years by providing exceptional service and expertise to his clients. Several clients have already agreed to switch to Lincoln Credit Repair once the company launches. The continued level of great service and expertise will lead to Gary’s clients spreading the word about our company. Lincoln Credit Repair will also offer discounts and other incentives for every successful referral.

Billboards

Gary will invest in several billboard ads strategically located at busy intersections that receive thousands of traffic daily. The Marketing Manager will develop the print for the billboard design.

Social Media Marketing

Lincoln Credit Repair will invest in advertising on social media platforms such as Facebook and Instagram. By using targeted social media marketing, Lincoln Credit Repair will be able to reach the appropriate target audience in Lincoln. Before opening, Gary will hire a marketing manager to develop the branding and photography needed to create captivating social media posts.

Website/SEO Marketing

Lincoln Credit Repair will invest in a strong SEO presence so that when someone enters “Lincoln credit repair” or “local credit repair services near me” in their Google or Bing search bar, Lincoln Credit Repair will show up at the top of the list.

 

Pricing

The pricing of Lincoln Credit Repair will be moderate so customers feel they receive excellent value when purchasing our credit repair services.

 

Operations Plan

The following will be the operations plan for Lincoln Credit Repair.
Operation Functions:

• Gary Smith will be the sole owner of Lincoln Credit Repair. He will oversee the general operations of the company. In the early months, he will be the only credit repair attorney and the sole employee providing credit repair services. Gary will spend the next several months hiring the following:
• An Administrative Assistant who will oversee all administrative aspects of running the business. This will include bookkeeping, tax payments, and payroll of the staff. They will also help with scheduling appointments and answering client questions.
• A Marketing Manager who will provide all sales, marketing, and PR campaigns.
• Once the company becomes profitable and has a long list of clients, Gary will hire other credit repair specialists and attorneys to provide the company’s services.

 

Milestones:

Lincoln Credit Repair will have the following milestones completed in the next three months.

• 8/1/2023 – Finalize contract to lease office space
• 8/15/2023 – Begin office build-out
• 9/1/2023 – Start hiring key employees
• 9/15/2023 – Begin networking at industry events
• 10/1/2023 – Begin marketing campaigns
• 10/15/2023 – Lincoln Credit Repair opens its office for business

 

Management Team

Lincoln Credit Repair is run by Gary Smith. Gary is an experienced credit repair attorney with over two decades of experience. He has helped hundreds of clients repair their credit and turn their life around. However, Gary has spent his career working for large firms that focus on profits over people. As such, they charge high prices and don’t cater their services to each client’s needs. Gary is establishing Lincoln Credit Repair as a small firm that caters to the needs of the client and offers the best credit repair services in the local market.

Though Gary has never run a company of his own, he has considerable experience in the industry and knows how to run the general operations of a credit repair company. He is in the process of hiring staff who will help him manage the marketing, accounting, and administrative aspects of the business.

 

Financial Plan

Key Revenue & Costs

The revenue drivers for Lincoln Credit Repair will be the fees we charge for our credit repair services.

The cost drivers will primarily include the overhead costs required to run Lincoln Credit Repair. The expenses will include payroll, rent, utilities, office supplies, and marketing expenses.

 

Funding Requirements and Use of Funds

Lincoln Credit Repair is seeking $235,000 in debt financing to launch its credit repair company. The funding will be dedicated toward securing the office space and purchasing office equipment and supplies. Funding will also be dedicated toward three months of overhead costs, marketing costs, and working capital. The breakout of the funding is below:

• Office space build-out: $25,000
• Office equipment, supplies, and materials: $10,000
• Three months of overhead expenses (payroll, rent, utilities): $150,000
• Marketing costs: $25,000
• Working capital: $25,000

 

Key Assumptions

The following outlines the key assumptions required to achieve the revenue and cost numbers in the financials and to pay off the startup business loan.

• Number of clients per year: 100
• Office lease per year: $30,000
• Average monthly fee charged for our services: $100/month

 

Financial Projections

Income Statement

Balance Sheet

Cash Flow Statement

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