New ISO Start-Up Questions
Our article, "New ISO Start-Up Questions" (
GS96:05:01) has caused many new ISOs to send us follow-up questions. I have continued to respond individually to those that are sent via e-mail, but will address here a couple of the recurring questions.
On developing a business plan:
I am a believer in business plans, regardless of whether they are simple or involved plans. If you are a new business owner, or a sole proprietor Sales Professional, you will ultimately do better if you periodically write down what it is you are trying to accomplish. This will give you a measuring stick to look back at as you go. One of my favorite sayings is, "If you don't know where you are going, any road will get you there."
If you do not know how to start a formal plan, pick a business planning application. Two of the more popular ones are
Biz Plan Builder ($129 generally) and
MultiMedia MBA ($99.95 generally). You can call (800) 346-5426 for
Biz Plan or (800) 228-5609 for
MBA.
Do yourself a favor, at least write down what you want to accomplish with your business.
On SBA loans for ISOs:
First, you should realize that some individuals who have started with little or no money have done very well as an ISO. I can tell you from personal experience that when my two partners and myself started our ISO business, we borrowed $100,000 from a regional bank to accomplish our marketing efforts.
When nobody else will help, the Small Business Administration (SBA) may very well come to the rescue. That 100 page application that was once required is now down to two pages. Of course the SBA doesn't actually give you the money, your bank does. The SBA just guarantees the loan, which makes it attractive to the bank in the first place.
I suggest that you contact the SBA and perhaps go to the one hour presentation that they have, so that you better understand the process before contacting a bank that specializes in SBA loans.
Finally, as a down side, remember that the SBA requires that you be an excellent record keeper. All funds disbursed must be accounted for by the bank and your business. The record keeping can be a burden, however, it may well make sense for you.
On how to get to the right businesses:
I am a believer in target marketing. This does not necessarily mean how you market, as much as it means to whom you market. The reality is, that in the financial services marketplace you are competing against hundreds, even thousands, of ISOs trying to reach each potential retail customer.
Assuming that you have defined how you are going to differentiate your business from the others you compete against, then you can begin by focusing your marketing efforts on those groups of potential customers most likely to buy your products or services.
Most ISOs in the marketplace are taking a scatter gun approach, hoping to hit any moving target. Perhaps you could be different by focusing in on a specific niche in the market. This may then mean that you must increase your geographical reach through something like direct mail and telesales, to permit such a focused sales approach.
The alternative is to attempt to sell everyone within the geographic market that you can personally visit. In either case, you may need help in finding the right businesses and names.
If you contact American Business Directories, P.O. Box 27347 Omaha, Nebraska 68127, they will get you to:
American Consumer Lists, List of 9 Million Businesses,
Nationwide Directory of Businesses, and the old tried and true,
Dun's National Business Lists.
If you aren't happy with the above, don't miss
The Hugo Dunhill Mailing List Catalog (800) 223-6454, or
The Polk Mailing List Catalog (313) 292-3200.
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