Every business need some resources, some of them are traditional but dead resources like big office worth furniture costing 25000pm, but it is not important in this business. You can do this business from part of your home or part of any office.
Because clients are coming here through your personal relations and retaining with their safe & good services.Air conditioned office and revolving chairs may be good, but if losses are frequent then client may sweat in AC too.
So focus always on primary objective,then go for secondary. They came here to trade & invest.So good & safe return is primary for them.
Broker is not responsible for client’s profit or loss anyway, but if he is supporting with live resources then client is going no where leaving him.
What are live resources?
1.live tips with win/win model-
Means broker is getting more brokerage with client safety & profit. So many brokers are giving tips to increase brokerage only .That is short term benefit ,but if client is losing then broker is losing finally.
2.Trader –Investor education-
It may reduce risk of any sub broker to one fourth & safe turnover may go up 10times.
Brokers may get 100 new clients annually. 70% of them leave trading after losing their capital. but they should be kept alive .Each clients is like an asset to broker.
Don’t you believe this?
A flat worth 50lac gives annual rent rs 2lac. You spend money, time and energy to maintain that.
A client who gives 700-800 brokerage daily gives you same benefit.
If you keep him alive, his turnover and your brokerage earning will increase exponentially.
Everyone has a limited budget for business. So proper growth keep first thing first.
Business overheads in beginning may be reason to close business. If your monthly expenses are limited to 15-20000 only then brokerage from 5-6clients can bring you to break even point.First 6 months your clients may be small traders so you may be paying expenses from your pocket.
There is a best speciality in this business- your running expenses are limited with growing business.If business grows by 100% the expenses go up by 20% only.
A marketing officer is also a live expense who is bringing new clients.
Some of our sub brokers focused on a single small area or segment. Some medical representative used their old contacts. They offered some doctors to give a nominal cheque eg 20000.
They bought short term delivery of best nifty stocks in 1/2/3 parts and sold weekly.After 1-2month they showed 3-4% per month and doctors were convinced with knowledge based approach. Doctors can give 1lac cheque easily, so they gave. because there was a possibility to have 3-4times more than other investments.
If someone is doing buying 15lac & selling 15 turn over in delivery.then brokerage is maximum with minimum risk & least botheration.
During my seminar tour,I saw one fellow was maintaining sub broking id with his medical shop.There was no sitting of clients on the shop. Selected clients were trading over phone.
People keep thinking so many things before starting anything new.
This fellow has just calculated that what is input & what output expected minimum?
He started and added his income, skill & a new thrill in life.