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
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Only US $43.00
Click on the book cover for
more information |
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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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Mortgage Broker Business Plan
