Selling mortgages is not rocket science artworkDave Hershmanbusiness model, marketing, sales, long-term, invest, vendors, partners
Setting up the right business model for
success
Many who are in sales and marketing or own small businesses are
too busy trying to earn an income to worry about their long-term
business model. Unfortunately, if you want to build consistent
income and long-term success, the business model becomes an
essential part of the equation. There are many aspects to a
successful business model, but we would like to point out a few
that should serve as the foundation for building your business.
Look at the long-term
Yes, it is important to earn a living each and every day. But, the
myopic view we experience by living day-to-day can cause us to move
in the wrong direction in the long run. When this happens, we can
be blindsided by industry and market changes and miss golden
opportunities.
Were you prepared for the last industry slump? Are you ready for
the next big change in the industry? There is no better example
than the end of the real estate boom. There is no doubt that many
investors, homeowners, real estate agents and mortgage personnel
were caught off guard. Many of these people would have made
different decisions and helped their clients make different
decisions if they were looking at the long-term consequences of
their actions.
The question you must ask yourself is, "Where do I want to be
three, five or 10 years from now with regard to my business?" How
does this differ from today, and what plan must you employ to make
this happen? The issue here is prioritization. You must identify
the most important actions to implement to reach these long-term
goals.
Invest in your business
Your long-term business model needs to determine what it will take
for you to achieve the success you are seeking. In other words,
what do you need to invest, in terms of money, time and energy?
Businesses that are short of monetary and human capital are sure to
flounder.
It is important to note that we are talking about all aspects of
investment. Usually, when one hears the term "investment," they
think in terms of money. Yes, the investment of money is important,
but, if you invest the money and not the time or energy, the
business is bound to fail. Do you remember the last time you
purchased a software program and didn't learn how to use it
effectively? This is an example of investing the money, but not the
time or energy. The money was wasted, because you did not complete
the investment.
Energy will not make up for a complete lack of capital and
vice-versa. What must you invest in? You must invest in education,
technology, marketing and more. You may have to invest in an
office, an assistant, a computer program or the education to help
you better serve your clients.
Select and elevate the right vendors to
partners
All too often, we select our vendors in a way that we would not
want to be selected as a service provider. For example, perhaps we
don't want our clients selecting us for having the lowest price,
but we select our vendors because they have the lowest price or
they take us out to lunch.
We want vendors who are going to help us succeed. First, we have
to show them loyalty. When things gets busy and you need
high-priority service, is the vendor going to give your client that
priority? Do you deserve that level of priority?
The vendors have to help you succeed, by not only providing
excellent service at a good price, but also helping you to achieve
your business model. This help may include the development of new
business sources, or perhaps, if you are an owner or manager, the
recruitment of sales or operations personnel. Vendors will not step
up to the level of partnership, unless:
-You specify that you require this level of relationship and
exactly the help you would like; and
-Be clear that helping you will benefit them, as well. They
certainly should know that when you grow and prosper, they will
also benefit directly.
We could not think of three more important aspects of a
long-term business model than the following:
1. A long-term view
2. Investment in your business
3. Integration of vendors as partners
What changes do you need to make, to make these happen?
Dave Hershman is a top speaker and leading author in the
mortgage industry with eight books--including two best sellers for
the Mortgage Bankers Association of
America. His mortgage school is the only comprehensive advanced
curriculum in the industry. For a schedule of classes, free
marketing samples, speaking information and articles by Dave, call
(800) 581-5678, e-mail
[email protected] or
visit www.originationpro.com.
