Here’s a sample of my new book, “How to Start a Payday Loan Business.” Don’t think I focus strictly on payday loans! Traditional payday loans are evolving into small dollar, installment, line-of-credit, workplace loans… so be assured, I cover all the bases.
Your job description as the OWNER
When you own and operate any business, there are many different functions that are required to keep the place going.
As you get bigger, you delegate these different roles and activities to other people. If you’re lucky, these folks are, at a MINIMUM, competent, honest, and diligent. At the worst, you’ve got a bunch of thieves and liars working AGAINST you; much like the government does.
My PDL Powerhouse Course is created to help you FOCUS your time and attention on activities that are crucial to your success.
However, as the owner/director of a PAYDAY loan business, there are two tasks that should dominate your time, energy and attention:
- Marketing. Finding new and effective ways to get new customers. Experiment, evaluate, execute, test, iterate and do it again.
- Employees: You have to supervise them closely – FOREVER.
Your number one JOB is marketing. That is, building the scale and profitability of your business.
Marketing is hard work! Marketing is an ongoing search for new ideas. Then putting those ideas to the test. Do more of what is working, and trash those strategies that get poor results.
Allow your business and your marketing strategies to grow and to speak to you. Let this morph and evolve. As the owner, you have to do it. If you delegate this or outsource it, it’s not going to get done properly.
You also need to know and understand your numbers (key metrics) and reports. You need to know right away if something, or somebody is (not) working.
A shift in the market, organized fraud, or a sloppy employee not following your underwriting guidelines can wreak havoc on your bottom line. You’ll be much, much happier catching this sort of thing EARLY on.
You don’t want to get HUGE? You have one store and you’re happy with that?
That’s fine. Then you use marketing to replace your “lost” customers with new ones. You should be working to bring in the BEST customers and as many of them as you can possibly CRAM into your store.
Employees are the way that we scale up and have a LIFE outside our stores. However, a sloppy or lazy employee will cost you money AND aggravation. A dishonest employee can get you into trouble with regulators. They can steal ALL of your money, and get you sued. Hire slowly. Watch closely. Fire quickly.
So, how do you measure how you’re doing? How do you benchmark your own results against your competitors? That’s easy. You look up the financial statements for the publicly traded payday loan companies. But, you’re going to have to do some math.
For example: Advance America had revenues of $630,000,000; that’s from 2600 locations.
$630,000,000.00 / 2600 = $242,307.00
That works out to $242,307.00 per store. IF, your store is doing more than that, then you’re doing ok. If you’re doing less, then you have to work a little harder.
There are some superstar stores that just click. Check-n-go had a store in a region that was making 1.4 million in fees every year.
You can do the same math for profits, collections etc.
Bottom Line: 80% of your time and energy should be spent on marketing your business, and watching your staff.