Many people aspire to run a successful business and work independently in their life. They want to do things in their own creative way and think out of the box while dealing with certain parameters in running the business.
Growing a sub-broking business substantially is like a dream come true. But you need to be careful in the initial stages. After all, you have invested your hard earned money and would like to achieve the best out of it. Here are a few tips which you would require to grow your sub-broker business.
1. Obtain the Certificate of Registration
The first step to becoming a successful sub-broker is to obtain the Certificate of Registration from SEBI. Without obtaining this certificate you are not eligible to deal in securities. SEBI has directed the stock brokers not to deal with any person acting as a sub-broker prior registration. The clients also consider the authorised sub-brokers as more knowledgeable and trustworthy to deal with investments.
2. Selection of a Good Stock Broker
After obtaining the Certificate of Registration from SEBI, the next step would be the selection of a good stock-broker under whom you wish to work. You should be very clear about the value addition you are going to bring in to his business and alternately the values you are going to derive from him.
3. Choice of Office Space
Once you are done with the selection of the stockbroker on whose behalf you are going to transact in the business, the next big step is the allocation of the office space. Luckily, you do not require a huge space to run a stock-broking business. Around 200 sq ft carpet area is enough to start the business. You need to select the location of the office. The monthly rental and the security deposit also depend on the location to a large extent.
4. Hiring of Employees
After the office has been set up, you need to hire at least two employees to keep the business running smoothly. Determine the salary of the staff according to your budget. The experience of the staff should also be taken into consideration at the time of employment.
5. Make a Natural Database of Clients
Creating a natural database of the clients is an important step in developing the sub-broking business. The database includes those people whom you already know and who are most likely to help you in your endeavour to be a successful businessman. You can include your friends, relatives, family members and social contacts in the database. The conversion of the people in the database to your clients is directly proportional to your business.
6. Make Enough Cold Calls
In order to bring success to your business, you need to make cold calls to your prospects/ clients on a daily basis. You need to update your clients about any changes in the rules and regulation concerning investment policies. Explain them of the benefits of investing in stocks and securities early in their life.
Prospecting is a very important aspect of the trading business. It helps to develop a pipeline of potential customers. You have to suggest your clients a new approach to develop their investment portfolio. Suggest them of the investment policies which are best suited to them, based on their financial condition. Prospecting will help you source new clients or bring in money from the existing clients.
8. Meeting with Clients
Schedule a meeting with the clients at least 3-4 times in a week. This will increase the number of active clients in your business. It is also a part of your duty to fill out the appropriate paperwork required to execute the client’s investment wishes.
9. Updated Knowledge
Keep yourself updated about the new policies introduced in the market. Follow the financial news to understand the business and run it in a more effective way.
Meet the fellow sub-brokers on a regular basis. It will not only keep you updated about the new rules and regulation but also help you to increase your clientele.
The above were the 10 most effective way to grow your sub-broking business.