The secret to succession planning

IT IS sometimes hard to focus on a business exit strategy – particularly if you have just set out in your career as a broker.

Ask any broker and they will tell you that it is all too easy to become embroiled in ‘the here and now’, particularly in times of business growth.

As the volume of work increases, the time left for planning evaporates.

Before you know it, your business is driving you rather than you driving your business, and your succession strategy becomes cloudy – or, quite likely, forgotten.

Whether you are a sole business operator or have loan writers working with you, it is well worth taking the time periodically to focus on where and when you plan to stop working; how you’d like to make any transitions; and in what sort of financial situation you’d like to be.

Loan Market’s Sandra Mallia has done just that.

The Altona, Victoria-based broker knew she would eventually want to take a step back from the business and, at some point, leave the industry altogether.

She was, however, uncomfortable with the idea of selling her business or handing it over to someone she didn’t know, so Ms Mallia started to create a succession plan that would work well both for her and her business.

That plan included getting her son, Jarryd, involved. “I had been thinking about getting my son involved in the business for some time,” Ms Mallia says.

“My business was – and is – growing, so I knew I would eventually need to take another broker on, and so I asked my son what he thought about joining the business.”

Jarryd was “definitely not keen” at first, he recalls.

“I knew how hard mum worked and I didn’t know if I would enjoy working in a high pressure environment like that,” Jarryd says, “but mum asked me to give it a go, so I did and I haven’t looked back since.”

According to Ms Mallia, there was no pressure on her son to move into the mortgage broking profession.

“I just wanted him to give it a go,” she says. “I know the type of person Jarryd is and I just knew he would love the industry as much as I do. For me, it has been such a rewarding experience.

“I love being able to help people into their dream home. Better yet, some of my clients have become really good friends of mine and you can’t put a price on that. I wanted him to share in an industry that has been so good to me.”

Jarryd has now almost completed his Diploma in Financial Services.

And despite not yet being a fully-fledged broker, he has already learnt a great deal from working in the office with his mother.

“He comes along to almost every appointment of mine,” Ms Mallia says.

“I introduce him to my clients as my assistant and my son and I always get a really positive response to that. I think people generally want to support family businesses.”

Ms Mallia gets her son “working the phones”, calling clients, checking documents and liaising with banks.

“He knows the ins and the outs of the industry, so once he has finished his diploma I expect him to hit the ground running and be writing and settling loans within the next quarter,” she says.

THE NEXT PHASE

While Ms Mallia is pleased to know she will soon have another broker on board to help her handle her growing volumes, she says it is even better that the broker is her son.

“We have such an excellent rapport with each other,” she says. “Clients can sense that when they come into the office – it is a good work atmosphere.

“Moreover, we never argue and we can bounce things off each other, which really helps release some of the pressure and stress that can come with the job.”

Ms Mallia says she is confident that, with a bit more training, Jarryd will be able to confidently and comfortably take the business reins in the not-too-distant future.

“I am pretty happy with the way things are going at the moment,” she says.

“I love my job, I love the business and I am not quite ready to step away. But while I don’t see myself retiring soon, I think it is important to always be thinking and planning for the future.

“Regardless of how far away from retirement I might be, I feel a lot more comfortable in my business knowing that I now have an exit strategy if and when the time arises.”

Ms Mallia adds that she also likes knowing she can take some well-needed ‘down time’ whenever it’s required.

“I know I can step away from the business at certain times and it is in capable hands. That’s a good feeling to have,” she says.

Ms Mallia says she aims to spend the next few years passing everything she knows on to her son and teaching him how to create a strong database of client advocates – something she knows a lot about.

In 2011 and 2012, Ms Mallia was named Loan Market’s number one female loan writer in Victoria/Tasmania.

In addition, at Loan Market’s recent awards night, she was recognised for her commitment to excellent customer service

“To me, my success has come from helping others,” she says. “The most important thing to me is that my clients are treated with respect. That is something Jarryd sees me doing, and I know he will do the same.”

Meanwhile, according to Jarryd, working with his mum has shown him exactly what it takes to be a good broker.

“My mum always makes sure the customer comes first, and I know first-hand how important that is,” he says. “She has taught me so much about customer service and given me skills that the Diploma course simply can’t,” he says.

“Moreover, because she is my mum, I feel comfortable asking her anything – I know that no question is stupid.

“Now that I am in the industry, I can’t imagine doing anything else.”