Why start your own business and why now?
We all have those days when we feel fed up with our current situation or have experienced a particularly bad day at work. But is that enough reason to take the leap and start your own business as a commercial finance broker? Whilst it’s important to acknowledge those feelings, it’s essential to consider more positive and long-term reasons for embarking on this journey.
Entrepreneurs and business personalities have often spoken about the benefits of being in control of your work-life balance and being able to craft the direction of your career. Starting your own business allows you to create a life that aligns with your personal values and goals.
As Steve Jobs famously stated, “Your work is going to fill a large part of your life, and the only way to be truly satisfied is to do what you believe is great work.”
Does your current employment contract have a non-compete clause?
If your current employment contract includes a non-compete clause, it’s important to consider how this might affect your transition into starting your own commercial finance business. Non-compete clauses can restrict you from competing directly or using specific knowledge and contacts gained during your employment.
Specifically, business development roles often stipulate a period (typically 3-6 months) during which you are prohibited from contacting existing accounts. It’s essential to plan how you will navigate this period and explore alternative sources of lead generation.
Do you have the finances in place to cover the initial start-up period?
Setting up a business incurs various costs, from fees associated with registering the company to acquiring office equipment, software, and insurance. It’s crucial to have the financial resources available to cover these expenses and your living costs during the initial start-up period.
It may take a few months before you successfully close your first deal and collect your first commission payment. During this time, having sufficient funds to sustain yourself is essential.
Do you have the support of your family and friends?
Embarking on the journey of starting your own business can be both exciting and challenging. It’s important to have a support system in place, consisting of family and friends who understand and encourage your entrepreneurial ambitions.
How will you differentiate yourself from other finance brokers?
To succeed as a commercial finance broker, you need to have a unique value proposition that sets you apart from the competition. This differentiation can come in various forms, such as offering competitive pricing, exceptional service, quick turnaround times, specialised product or market knowledge, regional coverage, or an existing reputation.
Recognising a gap in the market or a niche that you can fill with your expertise can be a compelling reason to start your own commercial finance business.
Clearly communicating this difference to your customers and prospects is essential for attracting and retaining clients.
In conclusion, starting your own business as a commercial finance broker can be both exciting and terrifying. By thoroughly considering these five questions, you are well-placed to take the next step towards entrepreneurship. Remember, starting a business is not just about making money; it’s about creating a fulfilling and purpose-driven career.
Asset Finance Solutions and Synergy Commercial Finance are networks that promote excellence in commercial finance broking. Our ever-evolving “Broker in a Box” solution has been fast-tracking the start of new finance brokerages for nearly 20 years. If you have been working in asset or commercial finance for three years or more and are considering setting up your own business, we would be happy to share our expertise with you.
– Piotr Twaits, Managing Director at Synergy Commercial Finance Ltd