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Accounting for between 95-97 per cent of all Australian businesses, SMEs represent a significant opportunity for brokers to tap into, writes FAST chief executive Brendan Wright.
With a massive two million small businesses across the country employing 49 per cent of the workforce, SMEs are one of the biggest opportunities staring our industry in the face.
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Widely referred to as the ‘engine room’ of our economy, it is my belief that brokers who start servicing SME needs are not only going to be well placed to really excel – they’re going to be part of one of the most exciting developments this industry has seen, and at FAST, we’re very excited about working with brokers to cater to this market.
It makes sense
Did I mention that there are two million SMEs in Australia? From a total population of 24 million and a working age population of around 11.6 million, that’s a pretty sizeable market.
But it’s not just the size of the market that makes SMEs an interesting opportunity. They are a largely underserviced market too, in great need of the support and service brokers can provide.
If you’re an SME yourself – and let’s face it, the majority of brokers are – think about what your most precious resource is. I’m going to bet it’s time.
SMEs are exceptionally time poor, so anyone who can offer them specialised service and financing guidance that saves them precious time is going to be well received.
Costs are another key concern for SMEs. If you can save a business owner money and support them with financial arrangements that are going to boost their bottom line, you’re also going to be high on their honour list.
From my own time owning and operating a small business in timber manufacturing, I know what it means for business owners to have their own capital on the line. I also understand the associated challenges of running a business, creating employment and delivering to clients – and this is an expertise that brokers, as business owners themselves, can also bring to the table.
Of course, small business is a broad term, and specialising in a particular industry and getting to know the unique challenges of those business owners can also be beneficial. One of our most promising brokers, Louis Kovanis of Genius Loan Solutions, has focused his business on supporting the financial needs of the medical sector – in particular, dentists, surgeons and specialists.
By attending medical industry events, forums and conferences, Louis has developed an intimate understanding of his clients and the industry. This is just one example of the tactics you can use to develop your specialist knowledge of one or several sectors of Australia’s small business community.
It’s on your doorstep
The best thing about the SME opportunity is that for many brokers, a substantial chunk of their existing clients are in fact SMEs. You don’t even need to get out there and drum up new clients.
In fact, by being able to meet more of your existing client needs, you can strengthen your existing relationships and improve your prospects for forging long-term, repeat customers.
Broadening your business to cater to SME needs could just be what you need to take your business to the next level.
