No doubt you’ve heard of a little something called Covid-19, which has been making an impact of sorts on our and the worlds economies. Not to mention the impact on those who have lost loved ones and the social distancing regime that has come in.
To be blunt, in any crisis there are always opportunities. You would have head from a lot of experts that it’s not all “doom and gloom” and in fact at times presents opportunities that otherwise may be present.
On the debt side of the ledger, (Home Loans, Commercial Loans, Asset and Equipment Finance etc) we are seeing a number of opportunities present themselves for Accountants that previously may not have been so obvious or appeared “too hard”.
Having worked with hundreds of Accountants over the years, one very common thing I have seen is a lack of understanding in how much their clients actually trust them, and what this “leaves on the table” on the table for Accountants and their businesses.
One thing in particular is adding additional services into their business, creating wholistic financial solutions for their clients.
A lot of Accountants have done well in adding Financial Planning into their business as a replacement for the advice they where able to offer for so long, until regulations pushed them down another path.
The service most seem to outsource to trusted referral partners, (Mortgage Brokers or direct to Banks) or miss altogether is debt. (Home Loans, Commercial finance etc)
But in your client’s eyes, it is likely the MOST important part of the puzzle. The one just as confusing to most people as insurances etc and one that demands good guidance and education along the way.
Some of the most successful accounting firms I work with have mastered the “in-house” model to the point where not only is it a solid profit centre for the business but also builds a substantial asset for the business as well, delivering ongoing income even if new loans aren’t written (Trail)
As you know, the world is always going to throw up new challenges as long as it spins on its axis. We know for sure this crisis won’t be the last, and that it is important to prepare your business to ride through times like these as safely as possible.
For Accountants, adding an in-house mortgage broker division in times like these can be a major part of the long-term solution. Giving you an asset with an ongoing income and greater touch points with your clients.
But why would you start a new business venture in times like these?
1. Low entry and ongoing cost V’s high return and low risk
Starting a Mortgage Broker division is generally an inexpensive exercise, with the rewards far outweighing the costs. An example of this is mort Mortgage Brokers are “commission only” meaning they are remunerated on the loans that are settled. This means no wage overheads. Basically, all you need to supply is a desk, laptop and phone and they are away. They will generally pay their own aggregation costs as well (Approx $300 per month).
On the financial return side of the equation, the upside is substantial. An average Mortgage Broker division can make a profit of around $90kpa plus an ongoing trail book on top of that.
And to make matters easier, we also cover your credit license, so all the risk is absorbed by the broker. It couldn’t be simpler.
2. Re-shuffling of the decks (Plenty of available talent)
At this moment we are seeing a lot of talented people in the Mortgage Broker space look for new opportunities. This is primarily because a lot of brokers who are exceptional at customer service and their outcomes are not as good on the business development side. As a lot of Mortgage broker business shrink (Primarily due to mindset) this talent becomes available.
As you are well aware the hardest part of any business is engaging the right people.
3. Positioning your business for the next “go time”
While I am currently seeing a lot of businesses go into their shells and reduce their business, some on the other hard are finding this an ideal time to re-tool and get ready to scale.
Once this has passed, you will be known by your clients for how you helped them and how you took a positive role in their lives. At no time in the recent past has it been more important to have a debt specialist on hand. And think how powerful it would be to have someone from your office call your clients to touch base and see how they are travelling financially? Do they need assistance with the bank repayment holiday or other matters? You’d get to be on the front foot.
SO, if you want to explore this opportunity, please feel free to give me a call on 0406 076 828 and we can discuss if this is right for your business.
He also owns Referconnect, a marketing company specialising in linking financial service providers to provide better outcomes for their clients and deliver assets and profit to business owners and stakeholders.
Latest posts by Steve Lake (see all)
- Why now is the right time to start an in-house Mortgage Division - April 15, 2020
- Getting in front of potential referral partners - March 17, 2020
- Why your referral partnerships aren’t delivering - February 17, 2020