Succeeding as an entrepreneur takes hard work and persistence because, unfortunately, there is no business-startup fairy who magically bestows success on small businesses and their owners.
Most successful entrepreneurs follow comparable patterns and share similar basic characteristics. Hundreds of online articles and published books claim to know the secret of success in business, but for the most part, they boil down to the same major points.
Passion, perseverance and a positive attitude tend to set successful entrepreneurs apart. Cultivating these attributes requires an innate skill set and some tips to get started.
A 'Sub-Broker' is any person who is not a Trading Member of a Stock Exchange but who acts on behalf of a Trading Member as an agent or otherwise for assisting investors in dealing in securities through such Trading Members.
Having a business as sub broker is really one of best business at any stage of your life if you have knowledge about the financial market and products or willingness to learn about it. I personally think this is a great business as I don’t think any business is such which has so less capital requirements as this. To add this with the great opportunity which this country has with extremely poor financial literacy & abysmal participation levels in the capital markets (only 2 – 3% of the 125 CRS Indians investing in capital markets directly or indirectly).
1. Should have passed at least 10+2. (as per the regulations). We think ideally the person should at-least a graduation degree.
2. Should have the knowledge of Financial Markets, either by virtue of his prior work experience or by knowledge and he should be able to understand and manage the basic Finance transactions
3. Should be equipped with latest information related to Economic, Politic and Environment scenario. Every information may not be interesting news, but every information affects the Stock Market,
4. Should have the basic knowledge of Computers
5. Should have good communication Skill, and remember Customer Is God Value your customers, Stock broking is highly competitive business,
6. Should have good management skills, after all every business after a point is all about good management of Money, Man, Market and all other resources.
7. Should clear basic NISM modules on equities, mutual funds, commodities, F&O. The regulations require that the sub-broking activities cannot be conducted unless requisite modules are not cleared
This is the point which matters most for all Entrepreneurs, after all money is the most critical constraint of every business. We will try to summaries the basic practical requirement and rough estimation of Investment required for those requirement in below table:
*subject to addition or omission as per brokers
Choose a good stock broker to partner with. Many entrepreneurs only decide to partner with the broker who gives them higher revenue share of the business without understanding what is the value addition the sub-broker requires during the course of running the business. Choosing a broker is almost like marrying & one does not marry a girl just because she is only beautiful. The sub-broker should make a clear list of the value which he wishes to derive from the broker as also the value which the broker is giving. Understanding in detail & consulting with wise people in family / friends / social circle will help the entrepreneur take a wise decision
Please remember that sub-broker is not a part time business. Many sub-brokers make a mistake of doing this business as part time without giving adequate focus & time & thus not only losing out on a great business but also actually winding up in a few months
Sub-broker business is now not only a sub-broking of secondary market equity business but also graduated into almost like complete services of many financial services business. The client expects much more advice for his money rather than only transactions in equity market & thus the sub-broker has to advise the customer in multiple products like equities, commodities, currency, mutual funds, PMS Etc. Thus the sub-broker has to make himself adequately prepared to give advisory on all the products to the clients.
The first & most important thing is to make a “NATURAL DATABASE” of the people whom you would like to make your clients. The NATURAL DATABASE means the list of the people whom you already know & most likely help you in your entrepreneurial journey. It can consist of your family members, relatives, friends, social contacts, your colleagues etc. The conversion of your NATURAL DATABASE as your clients will immediately give you traction in the business
Continue with Cold Calls from your prospect databases
Please ensure that you do minimum 3- 4 meetings with the clients / prospects. Unless you do meetings it is almost impossible to source clients or bring new money from the clients
Prospecting will always be critical. As a sub broker, your income highly depends on your clients so make sure that you have enough active clients. Just because you have established a good relationship with your current clients does not mean you have to stop making cold calls. What will happen to you in the event that one of your clients suddenly moves out? If you continue with cold calling, you will not worry as much seeing that you have a fall back. Since you already have clients, why not ask for their referrals? Not everybody likes the idea of cold calling and you may be one of the brokers who are not too fond with prospecting. Just look at it this way
At the beginning of your pecuniary relationship with any client, you set weekly meetings to build investment portfolio and to catch up on financial issues. Keeping in touch with the client can go a long way in keeping them. At least twice a month is enough to reassure them that you are not taking them and their business for granted. Make yourself available in case they have questions. Build a financial journey for him and give them financial products that suit their needs
There is a reason why many sub brokers attend networking meetings. Cliché but true, networking opens the door to a lot of possibilities. The more people you know in the industry the higher are your chances to get more clients. One referral can lead to another and before you know it you already have clients to last a lifetime or at least while you are in the business.
LAST BUT MOST IMPORTANT:
Knowledge is wealth. Ensure that you upgrade yourself every day. Not just yours, also your employee’s knowledge building. Get trained and get your staff trained too so that you can add more value to the business.
“I’ve missed more than 9,000 shots in my career. I’ve lost almost 300 games. 26 times I’ve been trusted to take the game's winning shot and missed. I’ve failed over and over and over again in my life and that's why I succeed.“ -- Michael Jordan
Become a Motilal Oswal Sub Broker today!
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