Are you a Loan Writer? Here are 5 things you need to know if you’re thinking about starting your own broking business.
Making the decision to set up your own broking business and “go it alone” is a big step and can seem a little daunting. Here are 5 essential points you should consider before taking the plunge…
1. Be clear on WHY you want your own business
Whether it’s increasing your income, creating more flexibility around your time or simply wanting to be 100% in control of your ‘own show’ – it’s really important to be clear on your key drivers. Without clarity on WHY you are doing it, deciding on WHAT you need to do next can be difficult.
2. Be confident on where your new clients will come from
Knowing where your new clients will come from and how you will attract them will be critical to the success of your new business. Having a very clear plan for your business development activities ready to go on Day 1 should be at the top of your “to do” list. Ideally, you will also want to receive new client leads from the broker model you partner with.
3. Clearly understand your obligations
When considering the move to your own business it’s important you understand what obligations you must comply with after you leave your current arrangement. In particular, you will need to know whether you can contact your current clients or not and whether you are able to take any of your client information with you. When it comes to commercial terms, it will also be important to confirm whether trail payments will continue to be paid for your existing clients after you have left.
4. Be clear on the Client Experience you want to deliver
When establishing your own broking business you’ll want to implement systems and processes from Day 1 to deliver an experience that will result in repeat business and high referral rates. To do this you will need to be clear on;
- Your value proposition – why will clients choose you and your business?
- Your client engagement process – how will you deliver on your value proposition?
5. Do your homework to find the right broking model for you.
There are lots of different broking models available in the market – so it’s important to take some time and assess which is the best option for you. Below is a good starting list of questions to answer for yourself before you start touching base with different broking models;
- Do you want leads provided by your broking model or not?
- Do you want to create your own brand or would you prefer to operate under the strength of an existing one?
- What areas of support will you need the most in your first 12 months?
- What are their commercial terms? What value will you get for the money you’ll pay?