Every broker knows about the eternal behind the scenes work, admin chores and never-enough-hours-in-the-day tasks that are easy to put off. If you’re dreaming of outsourcing these tasks we’re thrilled to tell you that Hound can take these chores off your plate.
Automating admin tasks not only gives you more time to focus on your core job and responsibilities but can help you achieve long-term value for your business. This is important as it can help you get the best sale price for your book when you go to sell.
Staying on top of things with the right clients and retaining them is vital, says Peter Smyth from Hound. Ensuring a healthy back book helps keep your clients longer while growing your book, leading to your profit increases.
“Otherwise, you can’t build an asset up to sell it when you want to exit the industry,” he says.
Adding value to your business before selling
For many Australian brokers, the dream of building a successful business is just one step in a long-term plan. While enjoying the rewards of their hard work, most brokers also envision a day when they’ll transition out of the business, either to retire or pursue other opportunities. Planning for the eventual sale of your mortgage business is a crucial step to ensure a smooth transition and maximise the value of your business.
Here’s five ways to create a business of value before selling:
1.Financial health matters:
A solid financial foundation is essential when planning to sell your mortgage business. Potential buyers will want to see a clear picture of your revenue, profits, expenses and client portfolio. Ensuring your business’s financial records are accurate and well-organised is easy with Hound.
2. Build a strong team:
A talented and capable team is an asset highly valued by potential buyers. Invest in hiring and retaining top talent and ensure that your team can continue to deliver exceptional service without your direct involvement. A well-functioning team increases the appeal of your business to potential buyers. According to Forbes strong teams all work under clearly defined roles and responsibilities which are interconnected with one another.
3. Client relationships are key:
Maintaining strong relationships with your clients is crucial. Buyers are interested in acquiring a client base that is loyal and likely to stay on board after the sale. Nurture these relationships, provide outstanding customer service, and communicate your commitment to clients. The Institute for Communication Management and Leadership says exceeding client expectations makes customers feel special and nurtured, which can lead to long-term loyalty.
4. Documentation and systems:
Having well-documented processes and systems in place streamlines the transition for a new owner. Efficient and organised operations, and well-functioning essential workflows and procedures makes it easy for new owners to take up where you left over, ensuring a frictionless experience for clients. Hound helps you do this with options such as automatic annual review generation, trail book KPI calculation and setting personalised actions to alert you to when clients may be at risk of leaving.
5. Seek professional advice:
Selling a business is a complex process, and seeking professional advice is highly recommended. Engage with a business broker or mergers and acquisitions specialist who can help ensure a fair and legally compliant sale. From the Financial Services Reform Act 2001 to the Mortgage and Finance Association of Australia Code of Practice, a specialist can ensure compliance and help you get the true value of business.
By taking proactive steps to enhance the value and marketability of your mortgage brokerage, you can be well-prepared for a successful sale when the time comes. Planning ahead not only secures your financial future but also ensures a seamless transition that benefits both you and the new owner.
Discover how Hound works like a dog to ensure your brokering business is a viable asset when it comes time to sell – speak to us today.