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Spending weeks on the road with the Better Business Summit has given me a unique insight into the common problems that brokers across the country continue to come up against.
I recently had the pleasure of delivering a series of keynote speeches in capital cities across Australia for the Better Business Summit. This provided me with valuable insights into the challenges and aspirations of brokers from different regions.
One of the most enlightening aspects of my interactions was understanding why brokers chose this profession in the first place. When I asked them about their motivations, many said that they became brokers to have control over their own hours, enjoy a better work/life balance, and have more downtime.
However, the reality for most brokers is quite different. They are often rushed off their feet, struggling to find time for a break from work.
The most common challenge that brokers face is a lack of time. This issue was echoed by nearly every broker I spoke to. They are constantly juggling multiple tasks and responsibilities, leaving them with little time to focus on their core business activities. Being too busy is a curse for any business. I was able to identify this as the root cause of most of the problems brokers are facing today.
A contributing factor and a significant challenge that many brokers admitted to was not hiring well. When trying to build their teams and recruit support staff, the process has often not worked out as planned. This has cost them both time and money, diverting their attention away from their clients. The most common issue here is that they have hired generalists rather than specialists, which has not provided the support they needed.
A recent FBAA found that 44 per cent of brokers work alone. While this may not be a surprise, it is important when you consider that many brokers will be hiring their first employees after years of working on their own. One thing I did notice from those I spoke to was that their decision to hire someone was usually made in haste without much planning.
Hiring staff in a panic or a rush can pose significant risks for any small-business owner. When the pressure to fill gaps overshadows the need for a thoughtful hiring process, it often leads to mismatched roles and skill gaps, which can create more chaos than solutions. Without proper planning and clear role definitions, new hires may end up confused about their responsibilities, leading to inefficiencies and high staff turnover.
Meanwhile, relying on gut instinct rather than a structured recruitment strategy can result in overlooking key qualifications or red flags. This rushed approach not only wastes time and resources but also diverts attention away from core business activities, ultimately slowing down the business instead of speeding it up. It is therefore crucial that brokers take a proactive and strategic approach to hiring, ensuring they bring on the right people for the right roles at the right time.
Several brokers said that they had tried to outsource by going offshore, unsuccessfully. Again, it seems that this has either been rushed or poorly executed. Many have become jaded with the whole process and are fed up. Digging a little deeper, I discovered that some of these brokers are attempting to outsource key functions of their business before they have mapped out a clear process. This lack of clarity and structure has led to frustration and inefficiencies.
Overall, my journey across Australia and my interactions with brokers have highlighted the need for better time management, strategic hiring, and clear process mapping. By addressing these challenges, brokers can unlock greater efficiencies in their businesses and move closer to achieving the work/life balance they initially sought.
Christian Paterson is director of Auctus Coaching and helps brokers build more profitable and sustainable businesses.
He has worked in the mortgage broking industry since 2006, first as a broker, then as an operations manager, and now as a coach.
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