There certainly isn’t a shortage of ambitious brokers who want to both control their destiny and support clients in a much deeper way through their own business.
Even in the current climate — which is incredibly challenging for even the most experienced of advisers — we have been encouraged by high demand from brokers looking to go self-employed.
As well as the right attitude and approach to business, brokers need the right support and infrastructure around them
The challenge quickly becomes, though, how to grow that business in a quieter and more difficult market. After all, brokers cannot rely solely on the core business functions of mortgages and protection.
That’s certainly the case if we don’t dedicate the necessary time to have those meaningful conversations around protection; or if the primary motivation for going self-employed is to simply be your own boss and choose your own hours.
In our conversations with ambitious self-employed brokers, we’ve encouraged them to explore opportunities beyond their typical remit. This includes expanding their licence options and entering new, buoyant markets such as equity release, business protection and commercial advice. While there will always be those daunted by entering new areas, equally there are brokers who may not have had the opportunity before.
Yes, it can be daunting and it may require a different approach, but many of these markets — particularly business protection — are significantly under-served and the financial incentive is well worth the added commitment.
Even in the current climate, we have been encouraged by high demand from brokers looking to go self-employed
The right network will surely understand the value of this too and will actively encourage brokers to explore additional qualifications and do all it can to help make this a reality.
With the right infrastructure in place, brokers can become fully authorised at no great expense, accessing help and support up to full competence and beyond.
Furthermore, we always suggest brokers dedicate more time to their factfinds to identify any scope for wider financial advice. While they may not have the expertise themselves, a broker can establish a partnership with a local advice firm or utilise a group company to refer this business and still play a role in the revenue share.
Whether it is through six-month or annual reviews, advisers can also keep clients warm in preparation for either the next remortgage period or if their needs change.
While there will always be those daunted by entering new areas, equally there are brokers who may not have had the opportunity before
At a time when brokers are looking to grow their business, diversification presents an exciting opportunity to deliver a competitive advantage, increase their stock with the client and maximise their earning potential.
As well as the right attitude and approach to business, brokers need the right support and infrastructure around them to enable their growth. Going self-employed can be a lonely existence. While a recruiter may try to lure brokers with a high basic salary, this shouldn’t be in lieu of the support needed to develop both the business and the broker.
This article featured in the December 2023/January 2024 edition of MS.
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