Login
ISCOVER
Leading brokers get these three foundational keys right to help ensure they launch a business that’s successful now and into the future.
After 10 years of supporting new mortgage brokers to launch their businesses, I’ve noticed most successful brokers have something in common. Brokers who start with a strong foundation are more fulfilled in their careers and achieve their business aspirations earlier and more often.
Here are the three foundational keys to get right that will help ensure you launch a business that’s successful now and in the future.
Key no.1 - Understand your why
First, understand what's important to you. There are many different reasons people come into mortgage broking.
It could be around money, that chance to build an income that you generate yourself. For some, it’s a lifestyle choice, where you can balance when and how you work. Mortgage broking also allows you to take control of your life. You can get out of that corporate gig that's not satisfying you, and embrace your entrepreneurial spirit.
Once you’re clear on your ‘why’, clarify what you’re looking to build in the long term.
Not everyone wants to be a top-five broker. Some are happy to build a business that balances other factors in life that are important to them. Mortgage broking is a career where you have choice and control as the business owner.
It's essential to understand these drivers to set the base of what your business will look like.
Key no.2 - Choose your business model
Choosing the right aggregation partner and business model is essential.
A franchise model may be the right fit for you. Or you may prefer a more flexible model where you own the business and operate independently. Another option is to work as an employee of an existing broking business.
It can feel overwhelming, but understanding your why, researching your options and assessing your resources will help guide your decision.
One of the best ways to build your knowledge of the various options is to talk to people in the industry. Reach out to aggregators, brokers and mentors to help develop a view on what sort of model is the best fit for what you want to build.
Here are some questions to ask:
- Will I be restricted to only being able to operate in a certain territory?
- Will there be any constraints when I exit the business? For example, will I own my database and loan book?
- What are the fees and commission split?
- What support and professional development are available?
- Is the mentor industry body recognised?
- Is the panel of lenders suitable for my purposes?
When researching your options consider how much capital and cash flow you can commit to successfully start without financial pressure. The price to get started will vary depending on the model you choose. You’ll also need enough cash to cover the income gap. This is the time that it takes to receive your first revenue. This may mean continuing to work in a salaried role for a period of time.
Some business models will have initiatives in place to help you overcome the income gap, for example, Buyers Choice offers the Career Transition Program.
Key no. 3 - Find your people
There are two main groups of people you’ll need to become a successful broker. The first group is your support network, the second group you’ll need to find are customers.
Let’s look at your support network first. We've all heard the story that it takes a village to raise a child. This is similar when starting a mortgage broking business. It takes multiple layers of support to increase your chances of success and the rate of growth of your business.
Support can come from many places including your aggregator, mentor, licensee, and the other brokers within your aggregation group. It’s important to find a group (for example your aggregation group) that has the right culture fit for you.
You need to think about where you'll find your customers. People like to do business with people like them, so leveraging your current network is cost-effective and can yield excellent results.
Collate the names and contact details of everyone in your network including friends, family colleagues, sports clubs, church, past workmates, and LinkedIn connections to establish the extent of your reach.
Start by contacting your network to share the exciting news, seek their support to spread the news to their networks.
Consider growing your network with digital marketing. I’ve seen brokers build brand awareness, generate leads, and attract referral partners online. Check with your aggregator to find out what support and resources they have to help you build your online presence.
To build a successful future as a mortgage broker; do your research, think about what's important to you, consider the type of business you want to build, think about the three key success factors and how you’ll satisfy them, then get out there and initiate it.
If you’d like to explore how you can take control of your future and build your mortgage broking business on a solid foundation, book a confidential chat with our team.
JOIN THE DISCUSSION