Veteran businessman Gerard Hermens looks at how you can create the perfect broker model
Veteran businessman Gerard Hermens spoke at the MFAA Convention last week on how to create the perfect broker model, explaining how brokers can bring innovation into their business model to create a more effective and efficient business.
Hermens has established a family tyre manufacture and retail business, a consultancy business ‘Strategic Learning Partnerships’ and a Registered Training Organisation the ‘Institute of Strategic Management (ISM).
"If you want to be an entrepreneur it'll come from within," says Hermens. “It's not about size, (perfect broker models) try to maximise profits by running a really efficient business. It's about deciding what size you want to be and building a refined model."
Hermens noted the importance of utilising a specialised skill set, stressing that if you try and cater for everyone it won’t work. He advised new brokers to choose their segments first, such as first home buyers, investors or SMSF trustees, and then look at the value proposition.
"You've got to see it through the eyes of your customer, not your eyes," said Hermens, explaining if you know your customers' paying points, you can then find where the gain points are and grow from there. "When top brokers reach the $500 million plus mark, the book self sources."
When it comes to onboarding new staff, he pointed out one of the biggest risks in bringing on a writer is if they leave down the track and take their clients with them. His counteract this happening he recommends making them equally as important as everyone else who the customer deals with, not the most important. To do this Hermens says to create a flat structure so all your staff engage with the client throughout the process.
Hermens has established a family tyre manufacture and retail business, a consultancy business ‘Strategic Learning Partnerships’ and a Registered Training Organisation the ‘Institute of Strategic Management (ISM).
"If you want to be an entrepreneur it'll come from within," says Hermens. “It's not about size, (perfect broker models) try to maximise profits by running a really efficient business. It's about deciding what size you want to be and building a refined model."
Hermens noted the importance of utilising a specialised skill set, stressing that if you try and cater for everyone it won’t work. He advised new brokers to choose their segments first, such as first home buyers, investors or SMSF trustees, and then look at the value proposition.
"You've got to see it through the eyes of your customer, not your eyes," said Hermens, explaining if you know your customers' paying points, you can then find where the gain points are and grow from there. "When top brokers reach the $500 million plus mark, the book self sources."
When it comes to onboarding new staff, he pointed out one of the biggest risks in bringing on a writer is if they leave down the track and take their clients with them. His counteract this happening he recommends making them equally as important as everyone else who the customer deals with, not the most important. To do this Hermens says to create a flat structure so all your staff engage with the client throughout the process.
