Frankly, we do not think a payday loan business is so complicated that you need to pay $45K+ as a franchise fee, then pay 8% per month of your gross to a payday loan franchise company and then kick-in another 2% per month for advertising.
Better? Take all this cash and PUT IT ON THE STREET! You’ll earn 300% to 500% on it!
Your first steps:
2. Visit competitors – get a loan. (Use a “shill” if you must.) At a minimum, visit 2 store fronts (brick-n-mortar “B & M” and/or web sites. Make certain the web sites you apply for a loan on are direct lenders. (More on this in the Manual).
3. At the stores, perform customer counts. (Refer to our discussion of Craigslist for more on this.) Talk to the employees, “How is business?”or “ Is this your place?” Yes! Congratulations, how is business. No? Why not…? Have you ever thought of going into the business yourself?”
4. Build a team consisting of a good CPA, legal counsel, a tax professional…
5. Decide what licensing model you’ll employ. Your state/province? Tribe? None?
6. Decide on an LLC, C-Corp, S-Corp, sole-proprietor . Consider your biz name. [Avoid using “payday loans” or “car title loans” in your compamy name/DBA.] File DBA. Secure a web site domain name (Use Godaddy.com) Always use a .com. Customers always type/remember .com!
8. Develop your pro forma financials (Balance Sheet, cash flow, P&L’s… Start with our CD or the email links we send for the Adobe Acrobat downloaded version of our “Bible.” Refer to our “Excel Proforma” on the CD or, if you ordered the Adobe Acrobat downloaded version, the Sharefile.com email sent to you within 24-48 hours of your order for our “Bible.”
9. Develop your “Entity” documents, elected officers, certificate of formation, whatever is appropriate for your business model.
10. Consumer loan contracts (Examples on CD or we emailed them to you).
11. Prepare any additional docs you’ll require such as ACH account creation, bank account setup, sub-prime consumer data scrubbing account setup such as Clarity, Micrbuilt, DataX, Teletrack, etc. (Examples on the CD or emailed to you).
12. Loan management software: Software & Training – setup a minimum of 3 demos with the companies in this “Bible.” Perform these Online.
13. Fee Schedules – post online and/or in your store(s) (Examples in the “Bible.”
15. Develop branding, marketing and advertising programs and materials.
16. Website creation (re-read the “PDL Bible” and utilize resources listed). A “responsive” mobile friendly website is a must in today’s environment. Discuss this with your eventual software provider.
17. Operating procedures – develop via “PDL Bible” template in conjunction with training materials provided by your vendors (Software, ACH, scrubbers…)
18. Location – determine based on your situation, licensing model, store/Internet. (Refer to our “PDL Bible” chapter discussion “Site Selection.”
19. Furniture, fixtures, equipment, PC’s, supplies…
20. Signs, Branding, Point-of-Sale materials (consider VistaPrints.com and refer to our CD or you’re email we sent to you for link, resources…
21. Utilities, phones, internet, fax…
22. Security Systems (ADP has some interesting solutions)
23. Consider use of debit, stored-value cards (Refer to our “PDL “Bible”) and eCheckSystem.com
24. Insurance – consult with a professional. Bonds? See our recommendations.
25. Consider bill pay services, tax preparation… as a complementary service offering.
26. Google+, “Local Places Listings,” and Social Media such as Facebook, Linkedin, Twitter… this is a MUST DO!
27. Consider joining OLA, FISCA, CFSA and/or any local PDL organization