On the flip side, the more successful financial institutions are those that took a diverse and balanced approach to funding, giving them a more stable passage through troubled economic waters.
The same principle of balanced business planning can be applied to mortgage brokers.
At the moment many brokers are experiencing problems due to over-dependence on one type of client or product.
Diversification can provide a solution. By exploring fresh options brokers can both branch out into alternative sectors and strengthen their income streams.
A key factor in this process is marketing communication, and equity release provides a prime example.
Many clients are likely to have older relatives who require different product types. Advisers will often find that the parents of clients with equity release plans have gone direct to providers and not considered speaking to an IFA.
Involving all family members in equity release decisions is important and dialogue can be vital in allowing brokers to branch out into areas they have previously left unexplored.
Such diversification strategies are important in the present economic climate.