Succeeding as a Broker
Congratulations on becoming a Broker, it can be a rewarding and interesting career. However, before you dive in and start writing loans, there are some steps you can use as a guide to help your business get off to the best possible start.
For example:
- Always make sure you have enough working capital
- Start small - in both staff and capital outlay
- Keep an eye on your expenses
- Be selective when hiring staff
- Don't be afraid to take well-considered risks
As in any business, your success is ultimately down to perseverance and hard work. However, there are a number of helpful tips that can make a big difference to your bottom line. We have compiled a list of the most commonly recommended pieces of advice to help you succeed as a Broker:
Set yourself realistic goals (financial and non-financial)
Measure your progress regularly and seek advice if you're not reaching them.
Know your customers
Don't just promote products - look after the needs of your clients and the business will follow.
Know your market
Find out which other Brokers are operating in your area, figure out what they're doing right and wrong and look out for any opportunities you can exploit.
Know your industry
Keep abreast of the various offerings and integrate them into your daily dealings. Follow the latest market developments by subscribing to industry magazines.
Specialise
Focus your efforts on a specific group of people, whether it be first home buyers, property investors or high-risk loans.
Build a client base
The market you specialise in will help determine your strategies for finding new clients. If it's property investors, think about how you can find them or bring them to you, such as holding a free investment seminar.
Know your location
Understand the demographic and economic characteristics of the location you're planning to work from to ensure it provides good access to your target market and potential employees. You can also contact local councils for detailed information about business activity in their regions.
Publicise yourself
Public Relations (PR) is a great tool for Brokers to gain awareness and credibility. For example, build a relationship with local journalists and provide them with stories they can use in their publications.
Meet your clients' requirements
Clients' requirements tend to become more complicated over time. So rather than continually looking for new clients, expand the services and products you offer to existing ones.
Ask for referrals
In professional services like broking, word-of-mouth is vital. Ask your customers for referrals, offer an incentive, or organise an event such as an information seminar where existing clients can bring like-minded people.
Network
Attend functions and join industry associations, such as the Mortgage & Finance Association of Australia. Every business card in your pocket represents a potential client or valuable contact.
For more information about starting your business, including in-depth information about finance, tax and legal requirements, visit www.business.gov.au.