How quickly things can change. As we all know last weekend’s Federal election result was a win for brokers across the country. Commentators have stated that the LNP win means broker remuneration structures are unlikely to change for at least another 3 years. We saw some other positive signs immediately after the election including a rallying ASX; showing improved confidence in the future of the economy.
However, it is not all positive news: housing prices are continuing to fall and rumours are being tossed around forecasting 2 rate drops by the RBA over the course of the year. Add to that, banks are still gun shy with regard to their lending criteria post Royal Commission and the business environment is still difficult for any brokers looking to grow.
The key for brokers looking ahead over the next 3 years is to take comfort in the fact that their remuneration structure is unlikely to significantly change, and focus on the levers in their business that will provide the best opportunities for growth. Invest in marketing to attract more leads and generate more deals, and then look at ways to increase efficiencies in loan processing so you can pull through more volume in a shorter period of time. Focus on what you do best; which should be closing deals.
Now that you have some certainty and ability to forecast revenue over the next 3 years, it is time to plan out what those next 3 years look like; with a very strong focus on the next 6-12 months. How do you increase lead generation and deals and improve loan processing efficiencies; while also future proofing your business against a potential Labor win in 3 years time?
When you do find some time to commit to business planning, it is important to put all your options on the table and critically analyse each one to understand where the best return on investment lies. I highly recommend you throw outsourcing offshore into the mix.
Check out our case study to better understand how outsourcing your loan processing can inject serious cash back into your business for growth and future proofing.