But, as in any business, it’s not just about planning for the next few weeks or months, you need to think long-term. While you may not be planning to exit the market any time soon – there will come a point when you want to think about retirement. As such, it’s important to at least give some thought to what you plan to do with your business.
The most obvious option is to sell it. Another broker, perhaps in the same area as you, will no doubt be keen to snap up your customer list and business model. However, it’s important your company is in top condition in order to make it attractive to buyers and technology can play a key part in that.
The mortgage industry has come on in leaps and bounds on the technology front over the last few years and the younger generation of brokers are extremely tech savvy. Understandably then if a newer firm is looking to purchase your business they’ll want to ensure your systems are up to speed.
It will impress prospective purchasers if all management information that is required is at your fingertips, giving you a competitive edge as you can demonstrate your knowledge of current trends.
Crucially, good technology will mean you can keep up to date information on your customers, who they are and what they bought from you – a hugely beneficial tool for prospective buyers. Not only does having easy access to this information improve speed and efficiency it also means it will be clear where recurring income streams and renewals are, thus increasing the worth of your business.
Thanks to an effective technology system you will have been able to keep in regular contact with your existing customers, as opposed to relying solely on new customers for new business. You’ll be aware of the anniversary of when the mortgage product was sold so will be able to look into remortgaging and ancillary products, thus giving you a more robust business model – one which buyers will be particularly interested in.
Technology can also help you to manage any introducer relationships you may have. This means it is easy to control commission payments meanwhile compliance should be stronger too as all files will be safely stored. As a result reporting to the Financial Conduct Authority is made easier and risks are mitigated.
Prospective buyers will be particularly interested in low risk businesses as this means they don’t have to make as much provision for bad debt and claw backs, as such they are likely to pay a higher price for the firm.
Leaving the industry may be a long way off for you but having strong technology systems and processes in place now will give you the best possible chance of getting a good sale when the time comes to retire.
