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Starting your own business and ensuring that all the operations are carried out smoothly can be a difficult job. It requires lot of hard work and effort from an entrepreneur to run the business proficiently.
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. It is only hard work and knowledge that pays you high dividends in the end.
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.
One such type of entrepreneurship that requires too much effort and dedication is a sub-broker. As technology is advancing at a speedy pace, the demand for sub brokers are increasing rapidly. There is no room for negative thinking and “giving up” in the mind of any sub broker (also known as Authorised Person) who wishes to be a success, just as this is true for clients and investors who wish to see fruitful gains in the stock market. In order to imbibe a positive view in your clients, you must have that attitude yourself as a sub broker.
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.
Sub-Broking is very rewarding business model and has immense potential for the Sub-Broker (now AP) to earn in from of Brokerage anywhere from few lacs to even crores in a month. Low-capital investment requirements make sub-broker business an economical and profitable business for individuals.
Having a business as a sub broker (also known as an Authorised Person) is really one of the best business at any stage of your life if you have knowledge about the financial market and products, or a willingness to learn about it. To add this with the great potential and opportunity which this country has with poor financial literacy & abysmal participation levels in the capital markets (only 3 – 4% of the 140+ cr Indian population 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 have a graduation degree.
2. Should have the knowledge of Financial Markets, either by virtue of his / her prior work experience or by knowledge and he / she should be able to understand and manage the basic financial transactions.
3. Should be equipped with latest information related to the economy, social & political scenarios as this can influence stock prices. Should stay up to date with current domestic & world affairs.
4. Should have well-versed with operating Computers.
5. Should have good communication skills. It is important to learn to communicate with the client seamlessly.
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
Sub-Broker business involved less capital requirement compare to other form of business. Some of the basic investments involve the initial security deposit with the main broker (50k – 3 Lac), office rent, utility bills, staff salary, internet connection charges & registration expenses.
*subject to addition or omission as per brokers
Conclusion - Establishing and running a business is never easy. As an entrepreneur, you are expected to wear many hats. Having an agency business is rewarding if you are determined to stay focused and work hard.
In any field that you choose to work in, having knowledge is the key to how you will succeed. Your success depends on the know-how you have and 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. There is a plethora of information out there, and with technology at your feet, you can update yourself on a daily basis.
Here is a quote that inspires all those individuals who want to see success:
“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
We hope the above tips are useful to you to transform your business.
Related Articles: How To Choose The Right Sub Broker Franchise In India | 10 Qualities A Sub Broker Must Have To Become Successful | Difference Between Sub Broker Franchise And An Authorised Person | How to Start & Grow Your Sub Broker Franchise in India