3 mistakes that kills broker businesses
Running a successful brokering firm comes with its own challenges and hurdles. Upwards of 35% of brokers close their doors within 12 months of starting their business, and over 60% of SME’s in general, will close their doors within 3 years due to financial hardship. Sobering statistics. There are a lot of perks to being your own boss including being able to dictate your own hours, make the money equal to your ambition and of course, not having to answer to anyone. But all of these perks do not come without hard work and determination.
Being a business owner means that the entire responsibility of the company’s success rides on your shoulders. Building your business, attracting and retaining clients, handling your own marketing, watching your expenditure; all of these things can become a burden over time, leading to a lack of motivation or the feeling you may have bitten off more than you can chew. In this article, we’re going to cover 5 key areas that will impact you running a successful brokering business.
So, you have set up your mortgage brokering business; you’ve bought all your equipment, set up your website and you’ve invested $10,000 of your own hard-earned money (or you’ve borrowed it). You have all your accreditations and you are bright-eyed and bushy-tailed, ready to earn the $10K a month that you need to earn to stay afloat and pay your bills and then? The phone doesn’t ring; the emails do not come, and your site has little to no traffic. As your money disappears, so does your motivation and as your debt builds, you wonder how your business will survive.
You Never Plan
The first and probably most crucial step, is to have a comprehensive business plan. Any investor will ask to see a business plan before they invest capital into a venture and your own business should be no different. Put your ideas on paper. Flesh them out. Workshop potential scenarios that may arise both good and bad (you will learn as much from your mistakes as you do from your successes). Your business plan should include goal setting; what do you want to achieve in your business? Where do you see the business going/growing? How do you plan to fund the business while you grow a solid client base? What is your marketing plan? How do you plan to attract customers?
You Never Invest in Marketing
Your phone will not ring without customers and unless you brought existing clients over from a previous position, you will be building your new client base from scratch. This is something that you cannot do without a marketing campaign and it is possible to run a grassroots marketing campaign without having to splash out on a marketing firm for help. Thanks to social media and the reach it has, you can utilise many free social media platforms to help spread the word. It also helps to target your demographic which, as a broker, is people in the property buying market; make your marketing smarter, not harder.
For goodness sakes, remember after aftersales service!
It costs a tiny fraction to keep old clients compared to finding new ones, your clients will be the difference between success and failure. Whilst attracting new clients is very important and not something to neglect, never forget about your flagship customers. A little loyalty goes a long way and even though your skills and training are what is going to get the job done, it is your customer service that will keep people coming back. The adage that people may not remember what you say, but they will always remember how you made them feel has never been more applicable than in a small business model. Your consistency, loyalty, and attention to all of your clients, both large and small, will be what sets you apart from other firms.
There are so many other mistakes that could make the list, relying too much on credit card debt, outsourcing roles, training, self-motivation and more.
There are obviously many more things that you can do when running your own brokering business that will help ensure success and longevity, but the topics covered in this article are a great start. There are many businesses out there that have done the hard work and survived and the common theme for all of them would be preparation and research. There is value in experience so never be afraid to ask someone you look up to for advice or help. With careful attention and planning, you too can enjoy a thriving business of your own.
If you have a client struggling with debt, we may be able to help, contact us on 1300 490 030 or [email protected]
This article should not be considered legal advice, but as a general guide only. If you are facing legal recovery action, please consult a legal attorney to assist you. For further information on how to have your debts cut by half or more through a specialist negotiator, reach out to us on [email protected] or contact us on 1300 490 030.