Column: Newcomer's Corner

Why won’t the seasoned repossession company help a new company that is coming into the business?

I was trying to open my own company without re-venting the wheel. To "reinvent the wheel" is to duplicate a basic method that has long since been accepted and even taken for granted.  I contacted out of state repossession companies asking for help with basic information; I realize that I was not going to get any help from in state because they were going to be my competitors. At the same time I did not get any help or call back from the out of state repossessions companies. It’s not like you are giving away your trade secrets with just some of the simple things that someone starting out would need to know or like to know.

The repossession field can be very rewarding and extremely lucrative once a clientele has been established. But there are some pre-qualifications to consider. Before launching a repo business, you should have some experience in property recovery, private investigation or tracing. A person wouldn't start a plumbing business without knowing how to fix a leaky pipe. The same goes for the repossession world.

If you have the necessary experience, you first need to obtain the proper licensing. For instance, many states require that you obtain an auto repossession license before you perform these services. Check with your state's licensing board. From there, you will need to get up to speed on the legal aspects of the business. States vary, so again check with the appropriate people at your local, county or state government. You'll want to take care of registering your business name, forming the legal business entity (i.e. LLC, C-Corp, etc.) and filing any appropriate paperwork with the state. You should always consult with an attorney or tax adviser before choosing your corporate form.

At this point, it's time to put together a cohesive business and marketing plan. Consider the markets you want to target, your overall budget, equipment needs, payment structure, etc. Once you've covered all of these steps, you're good to go.

So knowing this why do we keep inventing the wheel when it about helping each other, and not dogging them on a blog.

Scott

Jul 7, 2008