In the Indian system, individual investors can’t invest in the stock market directly. They need to do it through the many stockbrokers active in the country. These stockbrokers often operate through a dynamic network of agents, who on the broker’s behalf, offer equity market investment solutions to investors. These agents are officially called Authorised Persons. If you are wanting to realize your dream as an entrepreneur, obtaining an agency business is a good option.
Authorized Persons are an integral part of the Indian capital market. And because of the very structure of the Indian financial market, stockbroking is a perennial business. So, with the right attitude and approach, you can make it big in a very short time.
Establishing an agency business indeed demands lots of dedication and hard work, but the result is also equally rewarding. As an Authorised Person (Formerly known as a Sub Broker), you can earn over a lakh in a month with a rolling business. In this article, we will dabble in the ways to grow business as an Authorised Person.
Tips To Grow Your Business
Licencing and Registration
First thing first, to start a business, you need to register yourself as an Authorised Person with the stock exchange – BSE or NSE. With the new rules, SEBI registration is no longer required, and the regulator has asked all present and aspiring agents to register with the exchanges. SEBI bars anyone from operating as an Authorised Person without registration.
Finding A Good Stockbroker
As we have mentioned above, authorized persons work under stockbrokers. Finding a good stockbroker would need some groundwork. Begin with comparing the business models of each. Be clear about what value you can deliver and what you are going to receive because stockbrokers vary in their demand for initial security deposits and commission pay-out. We would advise that you select a firm that has a solid business record and an established brand name.
Selection Of Office Space
You can decide to work from home or select a commercial place to run your business. You don’t need to invest a lot at the very beginning. A decent size office is enough. Make sure you select the location carefully. When you enlist with a stockbroker, they will provide you with marketing essentials like banners, displays, and the like. When you select an office, make sure the area has a good footfall of the kind of people who are your target audience.
Updating Knowledge With Courses
To render the best service, you must stay updated with the latest development in the stock market. You can enroll yourself in the various short and long-term courses offered by the exchanges. Or, sign up for investor education programs conducted by SEBI. Along with, join the agent enhancement and training workshops arranged by the broking firm, reading research reports, and keeping a tab on the stock market news. Investors prefer a knowledgeable agent who will offer them good advice.
Create A Client Base
Your income depends on the business value you can generate, and for that, you need to build a good client base. There are a couple of ways you can adopt, like
– Build a natural database of the people whom you already know, such as friends, family, colleagues, relatives, neighbours who had shown interest in investing in stocks.
– Make cold calls to acquire new clients.
– Prospecting is an important aspect of agency business to build a pipeline of leads.
– Keep your clients updated with news on upcoming stocks, changes in rules and regulations, or new investment options. Nurturing your clients will help you win their confidence and create a pipeline of business. You can send them periodic emails on offers, updates, and more.
– Meet clients, at least 3-4 times a week, to discuss their portfolio. It will keep the number of active clients rising.
– Networking with fellow agents is a great way to stay updated about the industry and also to expand your business.
– Nowadays, you can target new clients on Facebook or Linkedin. Create attractive posts and campaigns to nurture your clientele on the digital platforms.
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. We hope the above tips are useful to you to transform your business.