It is important to keep on top of all areas of your business, while also planning ahead for the future. As the old saying goes, failing to plan is planning to fail.
Having a business plan can help you take the reins of your business and enable you to set a sense of direction for your business.
1. Your mission statement
This articulates the purpose behind your business and what you aim to achieve. Take the time to reflect on your values and principles that guide your business and incorporate them into your business plan.
2. Target audience
Clearly define your target market by staying up to date with the industry and looking at your existing portfolio to gain a clear understanding of your current customers, their segment categorisation, their characteristics, and any discernible patterns. Based on factors like demographics, income levels, geographic location, and financial requirements, you can define your target market. It is crucial to align your chosen segment with your expertise and specialisation. For example, you might have expertise in first-homebuyers or investment properties – whatever your niche, make sure you have the expertise to back it up.
3. Service offering
Detail the mortgage broking services you offer, including loan types that you specialise in, which lenders you are accredited with. Highlight how these lenders align with your target audience and areas of specialisation. Note down any additional services, such as commercial finance, personal loans, or asset finance that you provide to add value for your clients.
4. Lead generation
Document how you position your business and what your value proposition is. A strong value proposition helps your customers understand the benefits of choosing your business. Remember you can’t be all things to all people, it’s best to be decisive and occupy a clear position than to spread yourself too thin and have nothing that distinguishes you.
Outline exactly how you hope to attract leads and potential new clients to your business. You may develop a referral agreement with a real estate agent, financial planner, accountant or other professionals, optimise your website for Google, content marketing or encourage referrals from your existing customers.
5. Business structure
Detail your business operations, including your physical location, technology infrastructure, and key equipment or software. Outline what you need to be efficient and what the costs are involved. You will also want to provide an overview of who will be working in your business and what their roles and responsibilities will be.
6. Financial projections
Include financial forecasts for the next three to five years, including projected revenue, expenses, and profitability. Provide a breakdown of the sources of revenue, such as commissions or fees, and any anticipated growth rates. Include a budget, cash flow statement, and balance sheet. This section should also address any funding requirements or investment opportunities.
Establishing a solid business plan will help equip your business to flourish in a competitive and dynamic mortgage market.
Don’t forget your Partnership Manager is here to support you. Reach out to your PM if you would like to book in a planning session with them.