Start a time share exit business by following these 9 steps:
You have found the perfect business idea, and now you are ready to take the next step. There is more to starting a business than just registering it with the state. We have put together this simple guide to starting your time share exit business. These steps will ensure that your new business is well planned out, registered properly and legally compliant.
STEP 1: Plan your Business
A clear plan is essential for success as an entrepreneur. It will help you map out the specifics of your business and discover some unknowns. A few important topics to consider are:
- What are the startup and ongoing costs?
- Who is your target market?
- How long it will take you to break even?
- What will you name your business?
Luckily we have done a lot of this research for you.
What are the costs involved in opening a time share exit business?
Aside from the legal training required, the costs associated with owning a timeshare exit business are minimal. Business owners need a printer, copier, computer, website, phone, and fax machine. Any legal fees can be paid using funds that are collected up front, and there’s no need for an office since most work is done remotely.
What are the ongoing expenses for a time share exit business?
The ongoing expenses for a timeshare exit business are manageable. A business must pay for an office if it has one. Otherwise, the main expenses are the cost of a phone line and internet access, and employees’ salaries.
Who is the target market?
The target market for a timeshare exit business is timeshare owners. Timeshare owners tend to have at least some discretionary income, but that’s not always the case. They are usually people who like to go on vacations.
How does a time share exit business make money?
A timeshare exit business makes money by charging customers to help them get out of timeshares. Because the process can take months or years, many companies charge their fee up front.
How much can you charge customers?
The costs to get out of a timeshare vary depending on the complexities of the agreement and applicable laws, and a lack of transparency in the industry makes it difficult to know exactly what competitors are charging customers.
How much profit can a time share exit business make?
A timeshare exit business can bring in a substantial revenue. At the time of writing, the Finn Law Group has 16 pending cases. From those cases alone, the group likely saw $80,000 or more in payments (based on the $5,000-plus price noted above).
How can you make your business more profitable?
Most timeshare exit businesses don’t branch out beyond timeshare law. Instead, they may expand their geographic reach when they want to grow.
What will you name your business?
Choosing the right name is very important. Read our detailed guide on how to name your business. We recommend checking if the business name you choose is available as a web domain and securing it early so no one else can take it.
After registering a domain name, consider setting up a professional email account (@yourcompany.com). Google's G Suite offers a business email service that comes with other useful tools, including word processing, spreadsheets, and more. Try it for free
STEP 2: Form a legal entity
Establishing a legal business entity such as an LLC prevents you from being personally liable if your time share exit business is sued. There are many business structures to choose from including: Corporations, LLC's, and DBA's.
Form Your LLC
Read our Guide to Form Your Own LLC
Check out the Top Business Formation Services from our friends at StartupSavant.
You should also consider using a registered agent service to help protect your privacy and stay compliant.
STEP 3: Register for taxes
You will need to register for a variety of state and federal taxes before you can open for business.
In order to register for taxes you will need to apply for an EIN. It's really easy and free!
You can acquire your EIN for free through the IRS website, via fax, or by mail. If you would like to learn more about EINs and how they can benefit your LLC, read our article, What is an EIN?.
STEP 4: Open a business bank account & credit card
Using dedicated business banking and credit accounts is essential for personal asset protection.
When your personal and business accounts are mixed, your personal assets (your home, car, and other valuables) are at risk in the event your business is sued. In business law, this is referred to as piercing your corporate veil.
Open a business bank account
- This separates your personal assets from your company's assets, which is necessary for personal asset protection.
- It also makes accounting and tax filing easier.
Recommended: Find the right bank for you, read our review of the Top 5 Banks for Your Small Business
Get a business credit card
- This helps you separate personal and business expenses by putting your business' expenses all in one place.
- It also builds your company's credit history, which can be useful to raise money and investment later on.
STEP 5: Set up business accounting
Recording your various expenses and sources of income is critical to understanding the financial performance of your business. Keeping accurate and detailed accounts also greatly simplifies your annual tax filing.
STEP 6: Obtain necessary permits and licenses
Failure to acquire necessary permits and licenses can result in hefty fines, or even cause your business to be shut down.
STEP 7: Get Business Insurance
Just as with licenses and permits, your business needs insurance in order to operate safely and lawfully. Business Insurance protects your company’s financial wellbeing in the event of a covered loss.
There are several types of insurance policies created for different types of businesses with different risks. If you’re unsure of the types of risks that your business may face, begin with General Liability Insurance. This is the most common coverage that small businesses need, so it’s a great place to start for your business.
Learn more about General Liability Insurance.
Another notable insurance policy that many businesses need is Workers’ Compensation Insurance. If your business will have employees, it’s a good chance that your state will require you to carry Workers' Compensation Coverage.
STEP 8: Define your brand
Your brand is what your company stands for, as well as how your business is perceived by the public. A strong brand will help your business stand out from competitors.
How to promote & market a time share exit business
Timeshare owners who want to cancel their timeshares typically do at least some research online, so most timeshare exit businesses focus their advertising efforts on internet campaigns. Search engine optimization, pay-per-click advertising, and retargeting ads are a few ways to market this type of business.
How to keep customers coming back
Timeshare exit businesses can set themselves apart from most of the competition by simply being honest and transparent. Timeshare Exit Team has largely built an entire company on simply cultivating a good reputation, although even they have some negative reviews online.
STEP 9: Establish your Web Presence
A business website allows customers to learn more about your company and the products or services you offer. You can also use social media to attract new clients or customers.
Start A Time Share Exit Business In Your State
Select your state below for an in-depth guide on completing each of these steps in your home state.
Is this Business Right For You?
Anyone who is detail oriented and not afraid of conflict may enjoy running a timeshare exit business. In many cases, helping customers get out of timeshares involves heady legal battles that call for attention to detail and confrontation.
What happens during a typical day at a time share exit business?
Running a timeshare exit business is a legal proposition that has three primary aspects:
- Explaining the process to customers, who may be upset, confused, and frustrated
- Researching applicable laws and preparing legal paperwork
- Communicating with resorts, which may involve phone calls, letters, and court appearances
What are some skills and experiences that will help you build a successful time share exit business?
In order to help people get out of legally binding timeshare agreements, business owners must be qualified to practice law. In most states, this means completing law school, passing the bar examination, and becoming a lawyer.
Business owners can theoretically start a timeshare exit business and hire attorneys for the legal work, but at this point the business owners add little value to the business. There’s a risk that the attorneys would start their own, competing company.
After passing the bar exam, business owners may need to study laws specific to timeshares in different states and countries. There are some books on these subjects, such as The Condominium Concept and How to Cancel a Mexico Timeshare. Business owners will gain more knowledge, however, by spending a short time working for a timeshare exit business before striking out on their own.
What is the growth potential for a time share exit business?
Most of a timeshare exit business’ work is done remotely, so it’s easy to grow. Some businesses may remain smaller law firms, but many expand quickly once they specialize in timeshares. Primo Management Group is a one-attorney practice specializing in this work. Finn Law Group and Timeshare Exit Team are examples of larger companies handling timeshare exits.
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Take the Next Step
Find a business mentor
One of the greatest resources an entrepreneur can have is quality mentorship. As you start planning your business, connect with a free business resource near you to get the help you need.
Having a support network in place to turn to during tough times is a major factor of success for new business owners.
Resources to Help Women in Business
There are many resources out there specifically for women entrepreneurs. We’ve gathered necessary and useful information to help you succeed both professionally and personally:
If you’re a woman looking for some guidance in entrepreneurship, check out this great new series Women in Business created by the women of our partner Startup Savant.
What are some insider tips for jump starting a time share exit business?
The timeshare exit industry is rife with complaints from consumers that claim businesses are dishonest. While there are plenty of honest businesses in the industry, there are also many that don’t have good reputations. Several are even being sued by timeshare sellers.
For long-term success, timeshare exit businesses should carefully build up a good reputation. Businesses can develop positive reputations by being accredited with the Better Business Bureau, being transparent in what they charge and do, and offering timely communications with customers.
How and when to build a team
Because timeshare exit laws are detailed and vary by location, business owners will want to hire some legal experts as soon as a business secures its first customer. Paralegals and other attorneys can help a business handle and win more cases.
Many business owners also either hire an administrative assistant or outsource their administrative work so that they can focus on the legal work that actually generates revenue.