Using collaboration could be key to increasing revenue, says Trail Homes’ Nick Young.
With the state of the market continuing to be in relative flux it’s natural to want to bunker down and hold on tightly onto ones’ turf (a.k.a. bury your head in the sand).
Conversely, challenging market conditions are the optimal time to rethink business models - and in particular, how to increase revenue beyond the staples of assessing efficiencies, limiting expenditure and stabilising working capital.
Specialise rather than diversify
There’s an immense pressure on the industry to adapt to the current climate by diversifying their service offering, which by all means has its merits. Having said that, for many, it’s a daunting concept to upskill at a time when loans are often more complex due to tightening lending criteria coupled with housing shortages and fierce competition.
An alternate option to the popular diversification model is to accelerate revenue by becoming a true specialist versus jack of all trades and ‘expanding’ into adjacent product categories through strategic collaborations, or partnerships, with brokers with complimentary skillsets.
Whilst ‘collaboration’ seems to be the term de jour, genuine collaborations are an extremely powerful means to meet and exceed client expectations, increase leads and extend influence.
All the concept takes is a common goal and the commitment to band together with like-minded companies to create a solution that is greater than the sum of its parts.
While strategic collaboration can provide the foundation for a long-term advantage, its potential is materially affected by:
We encourage the market to realise that opportunities come from relative chaos and to invest in staged growth plans – particularly in conjunction with an accountant.
We’re already seeing an uprise in opportunistic and transformative M&As in the form of acquiring competitors or merging with complimentary businesses.
If you’re in this boat, consider selling a portion of your trail book for an immediate ‘self-funded’ cash injection (without bundling your clients in the transaction) to facilitate the transaction.
Nick Young is a results-driven specialist who has more than 20 years’ experience in the mortgage broking industry, and now heads Trail Homes: Australia’s most established and longest serving trail book purchaser.
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