Plan Australia - It pays to plan

One of the main reasons is that they see planning as an onerous task that requires writing something akin to a small novel.

According to Sam Zammit, a PLAN Australia business development manager in NSW, a business plan is much easier to formulate than most brokers realise – most just need guidance in getting started.

“A business plan is a working document,” Mr Zammit says. “It is the outcome of a concentrated breakdown of a business: its goals and objectives, and the activities needed to achieve them.

“Some business plans are only a few pages long; the goal is to take the ideas out of a broker’s head and commit them to paper. Only then can a broker take action and have a reference point for how they’re tracking against that plan.”

TWO HEADS ARE BETTER THAN ONE

PLAN Australia recognised there was a major opportunity to help brokers with their business planning, so the aggregator set about creating a tool that could easily be applied to members’ businesses.

The result was the Business Planning Tool Kit, a custom built resource available to brokers whom the group identifies as having the virtues, mindset and willingness to expand their businesses.

“We’ve looked very closely at broker business planning and broken down all the barriers they face in effectively documenting growth in their business,” Mr Zammit says.

The tool kit takes into account each of the steps to follow to effectively plan for business growth.

“It’s a two-way street,” he says. “We’ll invest in helping brokers who are seeking to improve their business. Our Business Planning Tool Kit makes them accountable, focused and driven – and importantly, it helps them stay on course.”

The tool kit, says Mr Zammit, is template-based. As a BDM, he works closely with brokers to go through all the steps, from completing an initial questionnaire, through to discussions about the broker’s business, filling out a step by step worksheet and establishing goals.

“We’re a second set of eyes for brokers: we’re their sounding board, their coach and their mentor,” he says. “Brokers that truly invest in business planning realise results and working in tandem with a PLAN Australia BDM it becomes so much more tangible.”

Mr Zammit says most brokers appreciate the power of business planning; the biggest challenge is getting them to actually get it off the ground. PLAN Australia BDMs help brokers with the challenge of overcoming the first hurdle: getting started.

“My advice to any broker is to make the time to plan – get those ideas out of your head and onto paper. You can then take action to improve your business. Our Business Planning Tool Kit breaks down that process into bite-size pieces that provide structure for members who are passionate about growing their business,” he says.

Mark Bowyer, a PLAN Australia BDM in Queensland, likens business planning to peeling layers from an onion. All brokers have the ability to create a business plan – some just need the structure, assistance and guidance to achieve it.

“The Business Planning Tool Kit doesn’t tell brokers what they need to do to achieve business growth. Rather, it gives them a framework from which to analyse their business, its challenges and opportunities, and consider it in the context of an evolving and increasingly competitive market.”

A HOLISTIC APPROACH

Mr Bowyer says some brokers see business planning as one dimensional – simply what they need to do to sell more loans. But every broker is going to have different goals, which may include being more time-efficient to improve work/life balance or spend less time actually writing loans.

“The onus is on how to work more on your business, rather than in it – this is an overriding goal for brokers,” he says.

Business planning involves more than just how to sell more loans; a broker with a sound business plan that is realistic, actionable and practical will also see greater traction with referral partners.

“Real estate agents, accountants and builders all want to work with the best brokers,” he says. “And professional referral partners look for brokers that can demonstrate they are organised and they know where they are going. A business plan is essential in crystallising this.”

But while growth is a key goal when planning, brokers can also review how to build their business should they seek a potential merger or sale to another group some time in the future.

Mr Bowyer believes many brokers’ main asset is all too often just an Excel spreadsheet with client names, numbers and the most basic data.

“This doesn’t really have a lot of value when it comes to selling a business,” he says.

“Businesses with structured processes and, importantly, a road map for growth – as well as evidence that growth has taken and will continue to take place – are much more valuable to a potential suitor.

“As part of our Business Planning Tool Kit we also focus on helping brokers build a business into a more valuable asset through structuring, modifying processes and putting systems in place. Not only does this help brokers realise immediate changes in their business, it also ensures long-term value,” he says.

Interest in PLAN Australia’s business planning program is growing quickly with members as they realise the opportunities in planning.

“We work closely on educating members on business planning; however, our business planning program is by invitation only. This reflects the commitment by members to truly leverage the program – all members who engage the program need to commit and sign a letter of engagement.

It acknowledges that this program will require both the PLAN Australia BDM and the member to work in partnership.

“Interestingly, word of mouth is driving a lot of broker interest – they hear about the success of their peers and also want in. Our business planning program works; however, it requires brokers to truly engage and be accountable.”