4 Mistakes for Loan Brokers to Avoid
As you work on growing your business as a loan broker, there will undoubtedly be ups and downs—and mistakes (and wins!) along the way. If this is a completely new world for you, fear not: ARF Financial is here to help guide you. Let’s walk through 4 mistakes loan brokers should avoid as they get their feet wet in the space.
Ignoring the Importance of Education
It’s tough to carve out time in the day to do research or sit through training sessions, let alone ask your staff to dedicate time to it. But it’s one of the most important things you can do as a leader and a business owner. There are loads of websites and programs to help run successful businesses, and it’s worth it to invest that time to grow. The best way to gain a leg up? Stay at the forefront of industry news, trends, and workshops that’ll make your business stand out from the rest. The Financial Pantry is a great place to start.
Lacking a Unique Selling Point (USP)
What sets you apart from the competition goes far beyond just your logo or website—in the world of brokers, a unique selling point (USP) is worth its weight in gold. You need to convince your potential merchants that what you’ve got is better than anyone else out there, so your USP has to do a lot of heavy lifting. Per Hubspot, ‘An effective USP communicates your brand’s values and differentiates what your company offers through what you stand for and how this benefits your customers. It’s used in the early stages of the sales process, and the guiding question for creating it is asking yourself, “What does my business offer that’s different from the competition?”’ While it’s recommended to use your USP throughout verbal conversations with prospects, it’s also critical that it’s part of your digital strategy—so make sure it’s got a place on your website.
Avoiding Relationship Maintenance
After you’ve got your clients secured with a lender, it’s very important to keep the lines of communication open. You’ve just added a new member to your network, so now is not the time to cut ties. Work on keeping those connections rolling after the deal is made. With the goal of a great customer experience in mind, follow up with them to show just how much their business means to the success of your business. If you’ve got a solid roster of relationships with referral clients, the work of getting additional referrals is mostly done. We love repeat customers, after all.
Lackluster Marketing
Marketing is key. Failure to market your business to the right audience in the right format and the right place can be detrimental to your success. The Financial Pantry has loads of tips on marketing strategy for a variety of industries. And if you’re not sure whether your marketing plan is hitting the mark, there’s no shame in hiring professional content strategists to steer you toward the right path.
You can’t do it all; give yourself a bit of grace! One of the most important aspects of growing and maintain a strong business is to stand out from the pack, which is increasingly difficult if you’re trying to be the all-around MVP. Simply copying your competitors isn’t going to make you unique or deliver any added value to potential merchants, so it’s critical to consider what you can do differently (and better!) than them. Take these steps into consideration as you work on making a name for yourself in the broker business. And when you join forces with ARF Financial’s Referral Program, you can rest assured you’re offering your clients the industry-leading loan products they need to succeed.
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