Business ideas to bring your brand forward...
Richard Howes
5 August 2024Clearly, there are a myriad of reasons as to why we can put off decisions whether as a client or as an adviser. However, given the market overall is not mad (in the sense it’s running away) or bad (in that it’s not running near a cliff edge), perhaps we can use this time to reflect on our business and look to make some changes where needed in certain areas?
Below are some ideas that might help you in your thinking and as always, we would be delighted to help, discuss and plan any changes with you.
1. Taking on new staff might ease a little (be ready)
2022 and 2023 saw the tightest employment market for many years. 2024/25 is not easy, but are you planning for some hiring opportunities to develop as the year progresses?
The Bank of England have just given us a long-awaited drop in the base rate. However, the new Government are not short on the message that things are worse than they thought, so: will rates stay high? Will the cost of living crisis continue? Whilst that’s bad for society in general, it could be good for mortgage firms, who will actually do well out of the slowdown, as your services and advice to help people will be more in demand.
The key will be to get on the front foot with your recruitment plans and be promoting your good news story in what could be a continuation of a difficult news world.
What is your good news story?
Here are three reasons to come and have a chat with us at XYZ Mortgage Advice:
- We are growing as a business – clients from other Mortgage firms are seeking us out
- We are recruiting new staff – most other businesses are freezing their recruitment plans this year or moving people on
- We are mission led – we care about our clients (I know everyone says that, but we actually live it).
2. Specialisation gains real traction
Anecdotal evidence suggests that generalist mortgage advisers are doing quite well currently, however, firms that can communicate who they work best with and have a specific target audience, are doing a lot better. Specialisation means setting out your stall with an area or two in which you have real knowledge and expertise.
2024 is the year when more and more of the leading mortgage planning firms get comfortable owning a space, rather than getting lost in the sea of sameness.
If you do specialise, you can attract clients from across the country, not just within a 20-mile radius of your office, because you can engage with them and service them over calls, email and video conference calls etc.
You can think also about whether your staff might want to focus on areas that particularly affect your clients? Your technical staff/paraplanners might welcome being given the opportunity to really get into the details of a subject such as contractors etc. Some of your younger staff may have ideas about promotion using all forms of social media which could take your business into new areas with a new type of client – make sure that all financial promotions comply with the FCA’s rules.
3. Mortgage planners do well in 2024
The corollary is that firms that have not adopted the mindset, approach and business structure of the financial planning model will struggle.
Does your business have around 60% recurring revenue (financial planning firms have 80%-90%)? Think PTs, GI, Protection etc.
Is it time to re-think the business model, do you need help from Paradigm? This is an area we have extensive experience in guiding firms through the process of developing into new areas and adding new revenue streams.
4. Well-managed firms take advantage
As a result of these first three themes, and because well-managed mortgage planning firms have probably already identified them to some extent, they will be able to grow and scale even faster as we head into H2 and then into 2025.
Not just by acquiring, although that may well be part of the story because solid mortgage planning firms make great buyers of your businesses.
By re-shaping their own businesses to take advantage of these themes, well-managed firms will be able to thrive while everyone else is trying to merely survive (or get out).
