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Jun, 10 2011

Breaking Barriers

According to a report, big brokerage houses such as Angel Brokerage, Kotak Securities, Religare, India Infoline and Motilal Oswal are forging alliances with sub-brokers to save cost on rent and other infrastructure expenses and boost the declining retail

According to a report, big brokerage houses such as Angel Brokerage, Kotak Securities, Religare, India Infoline and Motilal Oswal are forging alliances with sub-brokers to save cost on rent and other infrastructure expenses and boost the declining retail investor base. Brokerage industry is the best alternative if you want to manage business from home.

HOME-BASED business is proving to be a favourite amongst many entrepreneurs, as they can save a lot of expenses by cutting down on travelling cost, office maintenance, electricity and doing away with soaring rentals. In the brokerage industry, only broker's educational qualification and professional experience counts whether he runs, owns or takes up the franchise to scale up business. If you have good communication and managerial skills, established contacts, then you can invest your hard-earned money in sub-brokerage or property consulting business. All it requires is a small space with minimum capital investment. However, you must be a graduate to start an online trading company or an offline business from home.

Home full of opportunities

The brokerage industry offers plethora of opportunities to small and big brokers, who supply various products and services to the retail investors. The stock and realty brokerage industry is penetrating into a consolidation and expansion phase where big brokerage firms would be forming strategic tie-ups with small brokers/property dealers on high profit-sharing basis in order to attract more clients, share profits and to foray into smaller cities.

Facet of franchising

Entrepreneurs can fulfill their dream by partnering with franchisors who provide the opportunity of operating a business from home. As per the Securities and Exchange Board of India, 10,184 brokers appointed over 8,000 sub-brokers during the last fiscal. Talking about the viability of running a brokerage business from home, Ketan Shah, Associate Director, IT and Business Development, Angel Broking, says, “Though doing business in a brokerage industry requires full-time attention, it is quite feasible to operate this business from home. Many independent financial advisors currently sell mutual funds, insurance and other products to customers while operating from home. In brokerage, it's easy to get terminals at home location to operate from there.”

In realty sector, RE/MAX is teaming up with housewives to create more revenue streams. Sam Chopra, Director, RE/MAX, says, “With real estate in mind where the current scenario is such that a large part of the industry is predominantly home-based having a considerable ratio of professionals who are working out of their homes rather than offices. Although this a male-driven industry, but a lot of housewives and young professionals have started taking interest in the industry, whether it starts as a search for investment opportunities or one's first buy/sell. All in all, part-time professionals and home-based real estate professionals constitute a large portion of the industry, especially the agents.”

Talking about the legal obligations in starting from home, Shah clarifies, “As such, there is no legal framework available for operating brokerage business from home, as an entrepreneur needs to obtain permission from their respective residential societies to operate such business from within the residential property.” In terms of offering training and support to franchisees, Angel Broking has specially designed training programmes for new start-ups. The company's training programmes are conducted by all the process owners and business heads directly.”

Expansion

The requirement of space and investment depends hugely on the size and scale of the business undertaken. And if one selects the franchise option, then one can start individually from home or a small office with negligible investment as the majority does in brokerage industry. “For new start-up entrepreneurs, we provide them the sitting facility within our branch office from where one can operate the business. Gradually, as the business grows and one acquires the confidence, he can shift to his own location and start acquiring customers,” adds Shah.

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