Starting Your Own Energy Brokerage?
Plan Ahead for Changing Cash Flow Requirements:
As an energy broker starting your own energy brokerage, you face many challenges in today’s market:?building a competitive supplier base,?acquiring customers,?creating efficient processes?for your day-to-day operations. When considering all this, it is easy to put your future business goals by the wayside.
But losing sight of your business strategy can hurt you sooner than you think. At?Advisors Energy Group, LLC?we frequently see brokers gain their independence, find success, and begin hiring employees?within their first year.
If these brokers had not developed their growth strategy early, their rapid success might not have happened. Or it could have crushed them when they were not equipped to handle such volume.
How Cash Flow Works for Newly Independent Brokers
We probably do not need to explain why cash flow is important.
But when starting their own firm, many brokers focus on immediate needs and lose sight of their future cash flow requirements.
When brokers focus on short-term commission plans, they tend to sacrifice long-term options. For example, a broker might accept an agreement that offers upfront payments but?stifles long-term earnings?with noncompetitive residual commissions.
So once the broker’s immediate cash flow is under control, they’re stuck with a bad deal if they want to increase long-term revenue.
领英推荐