Setting-up young business owners for future growth

Across LMG, we’re attracting a younger cohort of experienced brokers and bankers to our modern broking offering. In fact, the average age of our brokers is 44 and 46 for business owners - considerably younger than the industry average of 58.

It’s a dynamic that Loan Market has homed-in on and is supporting through its newly-launched Young Business Owner’s (YBO) program.

Loan Market’s Head of Broker Business Performance Ashley Ross said the initiative is about bringing together like-minded young talent who are commonly looking to scale-up their businesses, to share ideas, best practice and build connections.

“The YBO program is about giving business owners who are under 35 a community in which they can connect with other like-minded business owners,” said Mr Ross. “Compared to the wider industry, we have a larger proportion of younger business owners which is reflective of wholly-digital customer experience, culture and growth record. We’re proud of this dynamic and keen to nurture it further through the YBO program.”

Mr Ross said he was excited about the topics the YBO program would explore.

“For instance, we already know that some YBO members want to know about the benefits of employing a contractor as opposed to a PAYG employee,” he said. “Some others are interested in buying a trail book, but want to know the best ways to finance it, along with the processes, resources and risk management strategies you have to put in place to make it add a lot of value to the business’ bottom line.”

It’s never too early for business owners to be thinking about their long-term aspirations, either, said Mr Ross.

“As any seasoned business owner knows, working in the day-to-day operations can make it difficult to think about the future. But years can get away quickly and if you’re not working from a vision board and goals, you can end-up playing catch-up down the track.

“We’re looking to provide our up-and-coming business owners with the tools and knowledge for them to not only grow, but work strategically to meet their long-term aspirations.”

Mr Ross said bringing together young-minded business owners would also uncover insights for the wider network.

“YBOs often attract the next generation of borrowers, so it’s great to have this group providing us with expectations of the younger marketplace.”

Evelyn Clark of EVERLEND - the 2021 Women in Finance Young Business Leader of the Year and Principal of the 2022 Australian Mortgage Awards’ Brokerage of the Year (1-5 staff) - said bringing young business owners together was an important initiative.

Having studied finance and business, she has a strong appreciation of the need for business planning.

“A lot of people come to broking because they’re drawn to the occupation for their skill set,” she said.

“Being a business owner is different to being a broker, especially if you want to grow. If you’re taking on the risk of being a business owner, you don’t want to just be operating what’s effectively a PAYG business for yourself.

“Being a business owner is different to being a broker, especially if you want to grow. If you’re taking on the risk of being a business owner, you don’t want to just be operating what’s effectively a PAYG business for yourself.

“I think sharing business ideas through the YBO forum will be very beneficial.”

In tandem with YBO, Loan Market has also commenced a Succession Planning series, providing longstanding business owners with strategic guidance on preparing for the next phase of their careers by identifying future business partners, preparing businesses for sale, working less in their businesses and more.