For the small business operator to stay competitive, they need to be open to considering ideas that they might consider far-fetched or unusual. They might have to turn to sources they never considered to get some helpful hints.
Some of these sources have a background in the real estate lending business. The CEO of Mercantile Capital Corp., Chris Hurn, has written a book, “The Entrepreneur’s Secret to Creating Wealth: How the Smartest Business Owners Build Their Fortunes.” MCC is a
Among his advice to business owners and entrepreneurs is that if they have been in business for at least three to six years and the business is stable, “commercial property ownership is a natural next step with benefits that new entrepreneurs often overlook,” said Hurn, pointing out property ownership is a path to more stability and long-term wealth.
Business owners also need to make investments in themselves. “Identify business books that focus on areas you need to develop or lessons shared by successful business people you admire. Commit to reading at least once a month,” he suggested.
Hurn added, “Your company’s culture has a lot to do with your success. Come up with three ideas that will improve your company’s culture and take action on them. Improved health, the most universal resolution, can have a profoundly positive impact on the workplace, from boosting morale to increasing productivity.”
He addressed marketing by suggesting finding three new initiatives that can be implemented on a regular and ongoing basis. “Identify three new marketing initiatives that you can implement on a regular and ongoing basis. Start small and track which ideas seem to have teeth. Remember—repetition and consistency are keys here.”
Finally, “Become an authority in your field: Research publications in your industry and pitch yourself as a media source. (Author’s note: I have used Hurn on numerous occasions when I write about SBA 504.) This can net you some free PR later in the year. The key is to focus on media outlets—become a familiar name so they can turn to you as a reliable source. You have to convince contacts that you know your stuff and that you’re available to comment when there’s news to report. If you simply don’t have time for this, consider investing in a reasonably priced PR firm.”
Sometimes the best place to learn new tricks and techniques is to see what other industries are doing. I recently came across a study done by Pershing LLC regarding financial advisors that has a lot to offer mortgage industry participants.
The study notes that many advisory firms are still feeling the impact of a slow recovery (just like many mortgage originators who concentrate on purchase business).
And the advisory industry, which is heavily regulated, is having a problem attracting new, young talent—again, just like the mortgage industry. Pershing’s conclusions include:
1. Elevate the value of advice. Advice is something you as mortgage originators provide to your customers. One of the things that advisors have to overcome is the growing belief that consumers can manage their own financial affairs. With the growth of online and call center lenders, that is true for mortgage originators as well. In my view, that new paradigm is good for the consumer who fits the box, but these days fewer people fit into the box.
2. Reimagine the right talent. Pershing said, “The lack of young, qualified advisors entering the industry requires greater focus on people management skills and long-term staffing solutions. Advisory firms must build an infrastructure for progressing individuals through the ranks and offering them a clear career path, as well as widen their focus to include new talent pools from NextGen and more diverse populations.” Substitute mortgage for advisor and advisory firms.
3. Adopt a business-like approach to service. Pershing said, “Firms can improve productivity, control costs and realize scale by finding efficiencies in workflow through the use of technology and human capital.”
4. Create a culture of compliance. These words that best fit what the mortgage industry is dealing with today. Pershing said, “Adoption of a proactive approach to regulation will help to establish and maintain operating and servicing standards that are well above regulatory minimums.”
Customer service needs to be a focus of what you do as an originator. But during times of high application volume such as refinance booms, service goes by the wayside.
Ron Kaufman, a business consultant and author, said the customer service revolution can’t be done piecemeal. “Creating a superior service culture throughout an organization is like getting a new rocket into orbit,” he said.
“You need a massive and focused effort at the beginning to overcome the gravity of old attitudes and behaviors. And soon after your first new service successes, you need another enormous booster to keep momentum going and get into a sustainable orbit.
“The effort is well worth the results,” he adds. “When people at all levels and departments throughout an organization step up together—at the same time—to deliver better service, then full engagement occurs and the culture 'tips’ into a new and better direction.”
There might be push-back from employees and even some executives; it is how such obstacles are dealt with that matters.
He said not to start only with those people who deal with customers every day. These staffers already understand that service is important. But they can’t fix the behind-the-scenes issues that often affect customer perceptions about your business.
When the people in the back office make it “easier, faster, more responsive or more flexible” for those who deal with customers, that group will be “surprised, delighted and better able to serve your external customers,” he said. Customer service program launches have to happen at all levels—top, bottom and middle. It can’t be any one group alone.
It is important for management to keep its eye on the target. Kaufman had a client whose employees lost sight of this. Rather than focus on the external targets like reclaiming market share, rebuilding reputation, etc., the focus soon became scoring well on the internal course evaluations.
He said, “Eventually this lack of alignment with the program’s original goals became painfully apparent. The focus had drifted away from the early goals, and the entire program needed to refocus. A clear bull’s-eye that delivers value to others should always be at the center of your efforts, well-articulated and understood by everyone involved.”
And then there are those “stuck in the mud.” Kaufman commented, “For deeply cynical, resentful, or unwilling employees, there are two successful options. First, they may come to see the light and climb on board for an unfamiliar but uplifting ride. And second, they may feel so out of place as everyone else moves ahead, they no longer feel welcome, and leave. For the success of your organization, either outcome is welcome.”
