One of the hardest things any broker can do when it comes to their business and client base is hand over control. It is a major psychological hurdle.
After all, entrusting a long-standing and lucrative client to a third-party packager or master broker brings about a degree of reputational risk. But my advice is to make the leap.
The reason for this is that handing over control, as odd as it sounds, is the quickest way to add more control when it comes to running your business. It enables you to scale your revenue with no additional costs, which equals more profit and money in the bank.
Now, as a packager, you would expect me to say relax and pass the work our way. But that is not entirely true.
I am not saying you should hand over control of the bread-and-butter part of your business; the straightforward owner-occupier and buy-to-let loans and protection that often goes with them. Keep those and good luck to you.
If you are going to hand over control of a client, you should only do it with the cases that are not your natural fit. That way, you can focus on the ones that do not swallow up hours of your valuable time, sometimes fruitlessly.
By directing non-standard, complex or slightly out-of-the-ordinary deals towards packagers, your client will get the finance they need more quickly while you will earn almost the same for doing very little.
And it goes without saying any packager will be happy for you to ringfence the insurance element of a case, so you get to benefit from that side as usual. The spare time you have created should also enable you to push the lucrative protection side of your business even more.
Accepting that a particular case is not one for you is certainly not an admission of defeat; a white flag saying you cannot do it. On the contrary. It is a rational strategy for running and growing a business — one where you do not have to hire the extra help or expertise in-house to achieve your goals.
Above all, it is a way to control your own financial destiny.
Mark Dyason is managing director of Thistle Finance