Brokers will need to focus on factors they can control in their businesses if they are to ride out the coming “tough economic year” due to continued global economic turmoil.
As the European debt crisis mounts and European leaders scramble to reach agreement on a solution, MPA Top 100 Broker Louis Kovanis from Genius Loan Solutions in Sydney told Australian BrokerNews that brokers need to focus on "endogenous" factors in their own businesses.
"Exogenous factors like a bank credit crunch you can't control, but having said that, you can build other business that can basically shield you and buffet you against the big tsunamis," he said.
Genius Loan Solutions focuses on mortgage and lending advice to the niche medical market segment, with Kovanis garnering new and growing income streams from providing more holistic services including financial planning, accounting, and legal services.
Kovanis said the nature of his client base is they are more likely to take out a loan for the long term and are less likely to churn, resulting in a trail book that can withstand "economic shocks".
"I think next year is going to be a very tough economic year, predominantly around the European sovereign debt crisis. We are a global economy, and the effects will filter through," he said.
However, Kovanis said he will be maintaining a "vigilant" eye on business costs and efficiency as well as making sure the business does not overextend its reach.
In doing so, Kovanis hopes to boost revenue by 50% in the coming year, an achievement that would match the previous year's revenue growth for Genius Home Loans.
Kovanis said if brokers need to control "endogenous" factors and "aim for the stars".
"The world is constantly changing, and if you can't embrace change, you will be left behind," he said. "You can't focus on the negativity and the gloom and doom; you create your own opportunities," he said.
The coalface: Daniel Di Conza, Acceptance Finance