Source: Melbourne Investor Feb/March 2007

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The Time Is Ripe To Become Your Own Boss

Source: Melbourne Investor Feb/March 2007

Written by Jennifer Wong

Mortgage Choice

Jennifer is the Franchise Development Manager for Victoria and Tasmania, with strong experience gained from various roles in franchising as well as previous roles in the airline industry. She holds a B.Com (Honours) from the University of Melbourne.

 

The Time Is Ripe To Become Your Own Boss

With the mortgage broking industry currently writing around 40 per cent of all new loans (and predicted to write 50 per cent of all home loans within the next few years), this is an area with encouraging growth prospects.

The majority of mortgage brokers do not have backgrounds in financial services; many come from a sales background, while other previous careers range from butcher to footballer. However this is not a disadvantage. When considering buying into a financial lending franchise, in-depth training is provided by the industry and will complement the skills you already bring to the table.

Mortgage broking franchises backed by reputable companies hold a wealth of opportunity for Australians looking for flexible working hours. The ability to work around family commitments and the satisfaction of knowing the efforts invested, directly benefit their business.

Considerations

There are several things you need to consider when examining the intricacies of investing into a finance based franchise:

• the strength of the brand
• the strength of the company and its systems
• the ability of the company to weather downturns;
• the potential for growth in the industry
• the mood of the buying public.

It is also wise to consider if this type of franchise suits your lifestyle plans and employment aspirations.

Other questions you should ask are:


• Do you think that you would enjoy helping people with their finances?
• Would you like to run your own business with the support of an entire network behind you?
• Are you determined to become a high earner?
• Are you intent on being successful?
• Would you like to be in charge of your own destiny?

Once you have conducted your diligence and considered what is available to you, you should be heartened by the fact that property moves in cycles. And despite the current downturn (which is predicted to end shortly), there will always be a healthy market if you look in the right places. Property moves in cycles of around seven years, so prices are bound to increase at a faster pace in the future. However, there are still buyers and sellers and a great deal of people who need broking advice. This may also be an opportunity to establish your credentials before the next boom.

As stated, potential franchisees should undergo an intensive training course and lender accreditation. They should look for a company that fully supports their new venture and offers a mentoring program – where a new franchisee is taken under the wing of an established successful franchise owner. Also worth noting is that income in finance based franchises is earned via upfront and trail commission from each loan secured through the provider’s panel of lending institutions.

The alternative

Franchises offer a fantastic alternative to those who want business autonomy and independence, but also the support that major business can provide, including marketing, technology and administrative support.

Some in the industry may say that the mortgage market is a recession-proof business; in times of high consumer confidence, people tend to borrow for cars, holidays, home improvements and many other things. When consumer spending has peaked and the economy slows, it is often the case that people experience difficulty repaying their debts
and meeting their other financial commitments. In times such as these, it becomes necessary to consolidate their debts into one lower monthly repayment by refinancing.

As such, there is always work and new clients who are willing to be found.