| 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.
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