Business outcomes - Lighten your load

Strategic thinking and business planning are crucial to any mortgage business. And for business owners who are already time-poor, a personal assistant (PA) could be a very smart investment.

A PA can carry out a wide range of duties that extend beyond general office administration, including office organisation, marketing and public relations.

They are, effectively, a Jack (or Jill) of all trades.

HELP AT HAND

Client relationship management, loan submissions and tracking as well as database management are just some of the additional functions a PA can provide.

Smartline principal Harold Parkinson says his office in Bacchus Marsh, Victoria, would not run nearly as efficiently if it wasn't for his dedicated PA, Rana.

"For any questions or problems that may arise during or after loan settlement, Rana is the main point of reference," he says, adding that his PA helps with conducting the business' annual reviews, as well as lodging loan applications on his behalf and chasing up missing documentation with clients.

Help from a dedicated PA takes quite a load off Mr Parkinson's hands, and other brokers are also benefiting from having extra help.

Michelle Hughes of KIS Mortgage Solutions in Port Stephens on the NSW north coast says her assistant Sharon has been essential to her business success.

"Having a broker assistant like Sharon has essentially given me more free time from the processing side of the business, allowing me to focus more on business development," Ms Hughes says.

While Ms Hughes is busy meeting clients and developing effective business strategies, her assistant Sharon facilitates the loan application process by inputting loan data, sending correspondence to clients and taking responsibility for the marketing and administrative side of the business.

THE HUMAN CONNECTION

A strong customer service platform is the backbone of any sound broking business. Good service not only sets brokers apart from banks, it also ensures that repeat business isn't missed.

Rana's 17 years' experience in the banking and finance industry has been a valuable asset to Mr Parkinson's business, as it has enabled her to communicate with his clients effectively.

"Her knowledge and background in banking procedures serves her well with her dealings with both customers and banks alike," Mr Parkinson says.

Finding an assistant with industry knowledge and experience is something he would definitely suggest to brokers who are looking to hire a PA of their own.

But there's more to good customer service than industry knowledge alone, and KIS Mortgage Solutions' Michelle Hughes says assistants with fine administrative and organisational skills are equally valuable to the business.

"Sharon is very skilled in the administrative side of the business. We complement each other very well," she says.

Unlike voicemail, a PA can give a business a human face, making a broker's service friendlier, more personable and therefore a more positive experience for clients. Clients appreciate speaking to a real person when they phone the office.

Smartline's Harold Parkinson says his clients value the fact that they receive prompt and helpful assistance straight from the broker's ‘go-to' person. His PA is aware of his schedule, commitments and workload, so for his clients it's like having contact with Mr Parkinson directly.

"I get positive feedback from clients all the time," he says.

PA VS. LOAN WRITER

Hiring a PA can also be a cost-effective expansion strategy. Compared with a loan writer, hiring a PA may be a cheaper option.

Bringing in a loan writer invariably comes at a cost. While this may not involve paying a basic salary, it could mean channelling leads in the direction of the new recruit to help them get started.

A broker's professional indemnity insurance premium may also increase by hiring a loan writer as well.

But aside from the hard costs associated with taking on a loan writer, there are the ongoing expenses associated with training and meeting continuing professional development obligations: a requirement under the new consumer credit protection laws.

These costs might end up being more than a broker had bargained for - and there's no guarantee that the new loan writer will meet the expected standards of the business.

A PA, on the other hand, can be a broker's right-hand man or women, tying up all the loose ends associated with mortgage processing and submissions.

A PA can cost from $25-$60k per year depending on their level of experience. They can also be employed on a part time or casual basis.

The benefits associated with hiring a PA was the reason Mr Parkinson never considered hiring a loan writer to help him manage his workload.

"I'd recommend a broker hire a personal assistant over a loan writer - it's a value-added investment," he says.

THE VPA ALTERNATIVE

For brokers who do not have the finances to take on a salaried staff member, or the resources such as equipment and office space, a virtual personal assistant (VPA) might be the answer they have been searching for.

Put simply, a VPA is a personal assistant (PA) who contracts to the broker's business, working from their own office and with their own equipment.

According to VPA outsourcing firm Executive Business Solutions, a VPA is an ideal solution for a small business mortgage broker.

Unlike a salaried PA, a broker is not required to pay sick leave or annual leave entitlements, superannuation or WorkCover with a VPA.

This means that a VPA is responsible for their own liability cover and broker business owners do not need to worry about PAYG or other employer obligations.

In addition, VPAs won't take up space in the office because they work from their own external location, which is great if space and use of resources are an issue.

But most importantly, brokers only pay for work done by a VPA on an ‘as-needed' basis.

VPA's services are usually charged hourly and invoiced to the broker. The relationship is one of a contractor, rather than an employee.

With Executive Business Solutions, this cost is around $35 an hour. This makes a VPA a practical solution for the broker looking for help, but not looking to hire.