Going into Business - Financial Services

[Corey Batt]

Well, I've finaly decided to kick the bucket on going into teaching. Finishing up my B.Arts degree this year, instead of doing a Grad. Dip. of Education I want to get a Diploma of Financial Services - Mortgage Broking, and Diploma of Financial Services - Financial Planning.

The idea is to get the DFS-MB done by start of July 2012. Then whilst studying for DFS-FP I can have a swing at mortgage broking. If all goes well, by the start of 2013, I could potentially be a position to have the beginnings of a fully fledged Financial Services Business, with the ability to extend my studies through the available options.

Then there is the worries, how realistic is being able to do broking without on the job experience? Contacts isn't so much of an issue at the moment, as I do have a circle of individuals who have signalled their interest in being clients should I go down this path. Does anyone with experience in this area have an input?

If the mortgage broking side of things is possible, I'll be happy as Larry.

In general terms however, does anyone have any useful tips in regards to starting a small business, and running it?



Edit: DFS-MB is only an equivalent 60 hour course. Scratch six months to complete for... 4 weeks. Shocking.

 

[ldriver]

TBH I would go work in a FP or a MB office for a week + check out the admin and compliance requirements- if you can live with these, then go for it.

Also work out how long it takes to process business from pt A to pt B- this is all built into your cost structure and accordingly your P&L.

LMAO. I think I've become jaded

 

[Rolf Latham]

Hiya CJP

On the broking side of things, unless u go down the franchise side, most aggregators will want u to be under someones wing for a while, up to 2 years.

That mentorship serves as your experience, and if properly set up, and if u are up to it, can serve you well.

ta
rolf

 

[Corey Batt]

I was hoping you would reply Rolf

That is a bit of a hurdle, the 2 years experience. Understandable, but something which I would love to avoid by all means necessary. From what I can search, apparently there are a few aggregators out there who do accept less than two years, but can have their potential problems. Do you know of any reputable aggregator's which accept less than two years, or is that a catch 22?

Why I wanted to go it alone from the start was that in my current employment, I am able to essentially work a part-time/'full time' job on the side. If possible, the aim is to get my grounding with the MB side whilst in safe employment, then phase out my old job as I gain experience. Gaining experience does indeed sound like a great thing, its just the position pay levels I would assume would be far below what my current employment is, and that would cause the missus' a stir no doubt!

Any comments, or is it a case of having to bite the bullet? And for the matter, what sort of incomes would an entry level MB be likely to be earning?

 

[boods99]

Hi CJProperty,

In relation to you wanting to become a financial planner, you will need to either obtain an AFSL, or become an Authorised Representative of an AFS Licencee. AFSLs are generally difficult to obtain, as well as being expensive. You will also need to satisfy the initial and ongoing capital requirements.

Dealing with mum's and dad's finances is a very heavily policed sector, so be ready to keep immaculate records and learn to be very measured in what you say to people.

I have just completed my Diploma of Financial Services (Financial Planning) and is not really a diffuicult course.

Boods

 

[Rolf Latham]

I was hoping you would reply Rolf

That is a bit of a hurdle, the 2 years experience. Understandable, but something which I would love to avoid by all means necessary. From what I can search, apparently there are a few aggregators out there who do accept less than two years, but can have their potential problems. Do you know of any reputable aggregator's which accept less than two years, or is that a catch 22?

Why I wanted to go it alone from the start was that in my current employment, I am able to essentially work a part-time/'full time' job on the side. If possible, the aim is to get my grounding with the MB side whilst in safe employment, then phase out my old job as I gain experience. Gaining experience does indeed sound like a great thing, its just the position pay levels I would assume would be far below what my current employment is, and that would cause the missus' a stir no doubt!

Any comments, or is it a case of having to bite the bullet? And for the matter, what sort of incomes would an entry level MB be likely to be earning?

I dont see why a mentorship/franchise programme would be an issue here.

What I can see being an issue if one tries to head down the lone ranger trail, is that in most instances, you will stuff up a few good clients along the way..............

The Diploma course is a good thing, but only goes part of the way to making sure one doesnt scar some clients.

To some extent I am speaking from personal experience and the experience of many an unsuccesful broker.

Im not saying it cant be done as a lone dog, but its harder for sure

Be aware that the average broker makes considerably less than 70 k a year, with one in 4 losing dough according to a recent report.

Averages dont an industry make though.

ta
rolf