Six Key Steps to Building Your Mortgage Broking Business

Have you ever heard the saying “If you fail to plan, you plan to fail”?

In Australia, more than half of small business start-ups fail within the first two years.  While the reasons for failure vary, the single biggest explanation is that these small business owners have not taken the time to plan and implement strategies and processes to facilitate long-term success.

Starting, developing and building a Mortgage Broking business is no different to any other business – you still face similar challenges such as generating sales, attracting new and retaining existing clients, and managing cash flow, which is all the more important if you’re either just starting out or going through a period of significant growth.

Many business people, Mortgage Brokers included, underestimate the pressure placed upon cash flow whilst going through a period of extremely fast growth.Just consider for a moment the costs associated with growing from a single person broking firm to adding a staff member to help handle an upturn in sales. Where will they sit? Do they need a Computer? How long will it take to train them? And also other costs such as extra stationery, telephone, internet, business cards plus of course their salary.

This is nothing to be afraid of, in fact quite the opposite, it’s exciting…and having a plan in place to manage this growth will make the transition inspiring.

…but without a plan, excitement can quickly turn to stress.

Upgrade to the Diploma of Finance and Mortgage Broking Management today and learn more about growing your business and diversifying into new revenue streams.

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Our Mortgage Broking Training Planning Process

Over the years we’ve taught thousands of Mortgage Brokers various strategies to successfully grow their businesses and a key strategy is understanding the fundamentals of Business Planning.

The 6 step process:

1. Understand your  Client Base

• Who is your target market?• What are the key challenges of dealing with this market?• What does your client profile look like?

2. Clearly Define Your Targets

• Decide on your targets and goals• Write them down, visualise them, tell others

3. Identify Resources and Gaps

• Identify any resources that you may need to achieve these goals such as staff, funding, external assistance, or advice• Identify any training or skills gaps which may require attention to help achieve targets

4. Determine Time Frames

• Set clear and realistic timeframes and share those with all stakeholders• Maintain some flexibility though and be capable of accepting change

5.   Communication Method

• Communicate your plan to all stakeholders which may involve using different methods• Adjust your communication style to suit stakeholders and interested parties• You might choose a verbal presentation accompanied by something in writing

6. Aligning your resources

• It is important to ensure that business resources are aligned to the goals and targets in the business plan.  What this means is that resources such as staff, funding, infrastructure, technology and business intelligence are all working and aligned to the business goals and targets and adjusted as required.

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The term Financial Planning often conjures up a feeling of fear or worse still even paralysis in many business people including brokers but it needn’t.

If you follow the simple 6 step process below you’ll be well on your way to building a stronger and more sustainable broking business.The fundamental plan that you develop will need to be reviewed on a regular basis, ideally every 3 months or every 6 months as a minimum.

Don’t fall into the trap of developing a plan, putting it in the draw and then simply getting on with business.

Your plan should be a living breathing document or set of guiding principles and like all things living and breathing change is constant.It’s best to create a brief plan, condense this to a page of key points (ideally performance indicators) and have this visible to you and if appropriate your team.

And look at it regularly, question if it’s still relevant and adapt it as required.

This article is extracted from Intellitrain’s Diploma of Finance and Mortgage Broking Management Upgrade program, which is specifically designed to provide mortgage brokers with new skills to grow and diversify their business.

For more information call 1300 082 735 or Enrol Now and start your course today!