7 Step Business Plan for SBA Funding


 

Mortgage Broker Business Plan



Quotable
 

"It is better to be looked over than overlooked."
Mae West, legendary actress
 

 
MORTGAGE BROKER BUSINESS PLAN

A mortgage broker business plan used to be as rare as fish fangs.  But I am writing this in 2008, when you will need everything you can muster to make that plan a success.  

KEY CONSIDERATION

I truly don't mean to make light of this.  But are you out of your mind?  Mortgage companies are in trouble.  Banks are in trouble.  Our whole financial system ain't doing too hot.

And you want to open a mortgage broker business.

OK.  I have to assume that you are exceptional at your chosen field, or you just wouldn't do this at this particular point in time.  And that is precisely what is going to get you your funding:  Your expertise.

STRONGEST ADVANTAGE

The fact that you are looking for funding now truly places you in the top echelon of mortgage brokers.  You've got experience.  You've got guts.  Those are no small qualities.

Build on those qualities to promote your business.  The more moxie you can show, and the longer the track record of success, the better off you will be.

STRONGEST DISADVANTAGE

About that market ...

On the plus side, the bad market is weeding out a lot of not so good mortgage brokerage companies, so yours will likely be in a position to pick up some nice accounts.

OVERCOMING THE DISADVANTAGE WITH YOUR MORTGAGE BROKER BUSINESS PLAN

Prove that you have the experience to make the business successful.

What were you doing when the market went sour?  How did you handle it?  Your actions then tell more about your character and your potential for success than a long resume of great jobs.

So when you write your bio for your business plan, focus on your story of the "bad times".  Make sure that your lender knows that you have the skill, the connections and the background to survive anything that the market can throw at you.

Prove that you have the marketing background and skill to make the mortgage brokering business successful.

One sample business plan for mortgage broker company won't work for everyone.  Yours is a business that will be tied to your geographic market.  Define that market well.  

  • Why is this particular market good for your skill set?
  • Do you have a skill that will help you in this area, like language skills?
  • Are you involved in the area so that people trust you?  Little League and PTA pay off big time here.
  • How many competing firms are there in the area?  How are they doing?
  • Is this something you can do on the internet?  (It's nice to say Yes, but have you tried it?)

One way to demonstrate your influence in the marketplace is to create an Advisory Board of recognized professionals in your area, people from real estate and accounting and related fields.  These people would have no real determining vote on how you operate, but would serve as an endorsement for your business.  Get all the people you can behind you -- you will need them.

OTHER PLUSSES FROM YOUR MORTGAGE BROKER BUSINESS PLAN

This is a service business like none other. 

You must include a photo of yourself, one that generates trust.  Put it on the cover if you can.

Be sure to include enough in your budget for all the marketing you could possibly need.  Remember, a number of your clients could go out of business as well, necessitating your acquiring new customers as a steady clip over the next few years.

FOR ADDITIONAL INFORMATION FOR YOUR MORTGAGE BROKER BUSINESS PLAN AND MORTGAGE BROKER MARKETING PLAN

For demographic information on your location, look to BizMiner.  Establish just how far your geographical arm reaches, then document, document, document.  Create charts to show where your area of influence is, and how you will reach it.  On the BizMiner home page, look at the left hand navigation bar for the link to "Area Demographics".  These are the stats your lender will use, so know what they say.

Statistical information on the mortgage brokering business for your marketing plan for a mortgage business

Most importantly, the industry is in the midst of huge changes, and historical information will have little value for you.  Your financier will know that as well as you, so don't try to fudge it.

More important to you is the actual number of existing mortgage broker agencies in your area.  Don't rely on the yellow pages.  Watch all advertising, everywhere.  Check and see who is still in business, and who is not. 

However, because your lender will look at historical information, you should take a look as well.  Go to BizMiner.  In the Industry Search Box, enter "Mortgage Broker".  That will take you to data compiled from over 20,000 firms.  This is solid historical information with Industry Financials and Marketing Research.

As best you can, determine what happened to the industry in other down times, and in particular, note how rapidly it recovered.  Highlight the key stats for an upturning market, and show how you plan to position your company as the upturn occurs.

YOUR LIKELY LENDER/INVESTOR

If you are working with builders who use particular banks, you may have an advantage at that bank.  They will want that builder to succeed, and your business is one step in that success.

You may also look to angel investors, especially if you are looking at a ground floor opportunity in a new market.

YOUR ONLINE PRESENCE

You may or may not be able to actually do business online.  You should, however, have an online presence so that people can feel like they have met you before showing up at your office.  My preferred online host is discussed here.

ONE STEP FURTHER FOR YOUR SAMPLE MORTGAGE BROKER BUSINESS PLAN


 

Only US $43.00

 

Click on the book cover for more information

For a wham bang! business proposal, this is your best option because it includes step by step instructions on how to build a very winning business plan.

 

THE LAST WORD ON YOUR MORTGAGE BROKER BUSINESS PLAN

Service businesses are not always easy to fund.  But with your background and expertise, you've got a real advantage.

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C.J. Ralph,
Service Business Specialist

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