The new revenue streams that diversification presents are not to be ignored. But there are multiple ways to build a broader business proposition and some key questions you need to ask first, writes Choice Aggregation Services CEO Stephen Moore.
Our industry is experiencing unprecedented levels of growth as the broker proposition continues to resonate with customers from all walks of life and backgrounds -first home buyers to families to would-be factory owners.
For many brokers, the opportunity to step up and meet more of these growing customers’ needs presents an obvious pathway to growth and diversification is proving an increasingly popular business strategy.
During the course of this blog series, I’ve looked at a number of ways brokers can grow their business and really elevate their service proposition. And it’s fair to say, diversifying into new revenue streams is one strategy for success.
At Choice, we’ve seen many of our brokers achieve great success via the expansion of their service offering into new domains, such as commercial finance or financial planning.
But for brokers who haven’t made a move to diversify their offering, knowing where to start can be quite the challenge. Moreover, you want to make sure that any diversification strategy is going to add value to your business proposition and not just dilute what you already have.
At Choice, we see ourselves as a business partner for the future and we are committed to investing in our brokers and supporting their businesses into the future. We work closely with brokers to help them succeed, and part of that is working with them to help them diversify their business. From our many conversations with Choice members, we’ve identified a few key points of consideration that can serve as a useful starting point for any broker looking to expand their offering.
What makes sense for your existing customers?
The first question you need to ask yourself is where you could add value to your existing customers. Meeting more needs of existing customers is potentially the easiest way to grow a business, rather than trying to meet the needs of a new client base altogether. Think about whether your clients often ask about a particular service or if you cater to a particular buyer or demographic, what would complement your offering. For example, are many of your clients small business owners, who could benefit from business lending and asset finance?
What sort of time and resources can you commit?
Certainly no business will grow without time and investment, but it’s important to be realistic about the time and resources you are willing - or able - to commit to any business strategy. Think carefully about how you can make any diversification strategy work in practice and be sure to develop a strategic plan that provides clear goal posts and a framework for how you are going to get there. At Choice, we work closely with our brokers to develop a tailored business plan for any growth strategy they want to pursue and ensure we check in with them on their progress regularly.
Remember, one of the best ways for brokers to build a more holistic service offering is to build referral partnerships with quality operators across different services. This is a simple but powerful way to offer clients a ‘one-stop-shop’. If this sounds appealing to you, then it’s time to start building out your network and identifying partners you can trust and whose approach to business and customer experience complements your own.
Diversification presents compelling opportunities to expand your revenue streams, and brokers who take a considered approach and develop a quality business plan to guide them, will be well-placed to grow their business.