Industry data tells us that a little over 80 per cent of all mortgage brokerages operate as sole traders, or with one other staff member or loan writer. What this means is that the majority of mortgage broking business are conducted by owner operators.
The key question is then, what’s the difference between an owner operator and a business owner?
Most people go into business to do something for themselves and to have some control over their destiny, but some never get past the stage of being what you might describe as a “self-employed loan writer”.
At Connective, we support some of the industry’s best brokers and they are at all stages of the journey – from just starting out, to those who have built large and sophisticated businesses.
What is really interesting to see, particularly at the smaller end of scale, there is a clear line between brokers who are self-employed loan writers and those who are business owners. The difference is clear not only in their volumes, but in their business structures, processes, compliance and sales procedures and the way they think about the future of their business.
When you think of a business owner what do you think of? Whether you own a mortgage brokerage, an accounting or financial planning practice, as business owners there are a few key traits that are key to success.
Business owners have different relationships with their companies.
To be a business owner, you need to think of yourself as a manager of that business first and an employee of that business second. You need to be able to effectively perform these two roles and clearly define what they are and how they differ. You need to assign time to your business management role, which may be difficult if you are busy writing loans and servicing clients.
Try it now… grab a piece of paper and write down:
– My responsibilities and objectives as a wealth adviser are… [this], then
– My responsibilities and objectives as a business owner are… [this].
In the hectic course of the day, these differing activities can be hard to isolate from each other at first. But when you take the time to clearly distinguish and separate out the roles, it’s easy to see how they differ. Being a business owner requires an objective view of the bigger picture, particularly as you begin to consider hiring staff and expanding your business premises or offering.
Business owners know how to get their hands dirty, but that doesn’t mean they have to.
Letting go is one of the hardest parts of effectively running a business. Stepping away from the day-to-day tasks, when required, to focus on efficient processes, staff recruitment and training, accountability and growth allow you to build a business that could (perish the thought) operate without you!
Look to outsource the tasks that you don’t necessarily need to do yourself – marketing, accounts, reception (and many others). For example, you could spend a full day trying to execute that marketing campaign – or you could give it to a company that does that full time so you can focus on the tasks that only you can do.
Business owners are progressive.
Business owners typically aren’t satisfied with just doing what they have always done.
You find them constantly asking questions about business management, ‘How can we do it better / faster / more personally?’ ‘How can we generate more revenue and minimise costs?’ ‘What is our market share and how can we increase it?’ ‘Does our company have a point of difference and how can we capitalise on it?’ ‘Are our compliance processes effective in eliminating risk to my business?’ ‘Is there a better way to retain clients and maximise opportunities?’ Remembering to look up from your desk, and forwards, past the next deal, past the next 10 deals ensures you are always focused on improvement.
Attitude.
We know it sounds obvious, but so much of your success will be determined by your own discipline. Focus on growing yourself first, focus on building a corporate culture for your business that helps it to take on a life independent of your own. Once you:
– Can separate your goals, aspirations and activities from those of your company,
– Can let go of (some) tasks to focus on your business, and
– Are constantly looking for ways to improve
Then you can take on the tasks of a real business owner – create a growth plan, clearly outlining the steps you need to take to reach your objectives. Make time to follow the steps necessary to achieve your objectives. Here’s more information on goal setting.
Now that we know what business owners look like, how can you push yourself from a self-employed loan writer or wealth adviser to a business owner? Success along the journey is what’s key here. We’re looking for constant improvement and there are many resources that can help with the journey and the transition – but the journey starts with the realisation of what the journey actually is.
Murray has over 30 years of experience in the finance and financial services sector. Prior to starting Connective in 2003 he had built a highly successful mortgage broking business from the ground up. Murray has an intimate understanding of the challenges and rewards of the mortgage broking industry, and knows what it takes for broking businesses to provide exceptional service to their clients.
