Thinking about opening a loan brokerage business? We tell you what you need to know to get started.
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Characteristics of a Good Loan Brokerage Company Business Plan
Looking for a one-size-fits-all business plan? Good luck. . . because it doesn't exist. However, the most effective business plans do address specific sound business plan elements:
- Mission Statement – Your description of your loan brokerage business's reason for existing.
- Goals & Objectives – A list of mile markers on your loan brokerage business's road to success.
- Financial, Marketing & Action Plans – Specific plans that describe your business environment, demographic targets and quantitative estimates.
Review the Competition
Well in advance of opening a loan brokerage business in your town, it's essential to find out how strong the competition is. We've provided the link below to help you find competitors in your area. Complete the form by entering your city, state and zip code to get a list of loan brokerage businesses that are close by.
If there's too much competition, it may be wise to consider starting the business in a less competitive marketplace.
Finding a Non-Competitive Business Mentor
If you are seriously contemplating launching a loan brokerage business, it's a wise move to speak with somebody who is already in the business. It's very unlikely that the local competition will talk to you. It'd be crazy for them to teach you the business.
However, an entrepreneur who owns a loan brokerage business outside of your community may be willing to share their entrepreneurial wisdom with you, given that you don't compete with them in their area. In fact, they are often very willing to share startup advice with you. It can take a while to find an entrepreneur who is willing to talk, but it's well worth the effort.
So, what can you do to find a loan brokerage business manager on the other side of the country to talk to?
Easy. Find them using our link below and start calling until you are successful.
Three Arguments for Buying a Loan Brokerage Business
It's almost always preferable to buy a loan brokerage business than to pursue a loan brokerage business startup.
You'll want to conduct a comprehensive due diligence process, but here are three arguments why you should think about buying instead of a startup.
- Initial Revenue. With a business purchase, you'll have the ability to buy a company that is already operating in the black.
- Operational Efficiency. Existing businesses are established operations, with the necessary processes, people and other resources already in place.
- Capital Acquisition. Lenders, investors and other funding sources almost always prefer business purchases to startups.
Would you risk your startup investment on a coin toss? Probably not. But if you're launching a traditional startup, that's essentially what you're doing - gambling your future on a 50/50 shot at success.
Launching a franchised startup can insulate your investment from some of the risks associated with a typical startup. Leading franchisors offer the support and resources that are often lacking in startups. In general, franchise startups have higher first-year success rates than traditional business startups.
Our loan franchise directory is full of valuable information to help you determine whether a franchise opportunity may be a wise first step for your business.
These additional resources regarding starting a business may be of interest to you.
If you currently own a loan brokerage business, these resources will come in handy:
If you sell to loan brokerage businesses, this isn't the right place for you. Try these resources instead:
If you are interested in starting a different kind of business, please browse our directory of guides below.