How to successfully exit the franchise model and start your own business

Making the move from the franchise model to running your own independent brokerage is one of the biggest, and potentially most rewarding, decisions you can make in your career. As a business owner, you have the chance to build something that’s truly yours, with no cap on your earning potential, no limits on your brand and no playbook but your own. 

Of course, with greater freedom and flexibility comes greater responsibility. However, with the right preparation, support and tools, realising your dream is more than achievable. Here’s what you need to know to help you transition confidently and set yourself up for long-term success. 

Step one: Get clear on your business blueprint

Before embarking on a new phase as your own boss, it’s essential that you make a plan. This starts with defining what kind of business you want to lead, as there’s no one-size-fits-all template for a successful brokerage. 

Exiting the franchise model to run your own show requires an honest self-appraisal of your strengths and weaknesses as a broker so you can determine what support you’ll need to kick goals in every aspect of your business. Consider these three pillars when building your business blueprint: 

1. Your Clients – Who will you serve?

• What client segments are your sweet spot (e.g. first-home buyers, investors, business owners)?
• What’s your value proposition? Why should they choose you?
• How will you attract and nurture leads: referrals, content, paid ads?

2. Your Operations – How will the business run?

• What systems will keep you efficient and compliant?
• Do you need a virtual assistant or an outsourced admin?
• What CRM will you use?
• How will you handle compliance and learning and development?

3. Your Numbers – What does success look like?

• How much do you want to earn in year one?
• What’s your break-even point?
• What are your long-term goals: lifestyle, team growth, exit strategy?

By answering these questions, you’ll have a much stronger foundation for a sustainable business. At this stage, it’s crucial to partner with an aggregator that believes in your vision, understands your goals and can help tackle any business challenges. 

Step two: Plan your exit strategy 

Once you’ve set a blueprint for the business you want to build, you’ll want to create an exit strategy to make the transition as smooth and empowering as possible. Here are some tips to help you prepare:

• Check your contract: Before anything else, read the fine print in your contract. Most franchise groups require you to leave your trail behind and may restrict how and when you can contact existing clients. Knowing these details upfront will help you avoid surprises and plan your next move with confidence. 
• Set some funds aside: As you transition to becoming a business owner and look to join a new aggregator, you may not be able to write loans for up to eight weeks, which means you won’t be earning in that period. Aim to have at least six months of financial buffer while your business finds its feet.
• Build your support network: Going solo doesn’t mean going it alone. By joining an aggregator like AFG, you’ll have a Partnership Manager working closely alongside you as your business grows. They can also help connect you with a mentor who can keep you accountable and share lessons from their own business journey. 
• Identify your lead sources: If your leads previously came from the franchise group, now’s the time to lay the groundwork for your new business. Start nurturing referral relationships with local real estate agents, accountants and financial planners. 
• Assess your business needs: Honestly appraise what aspects of your business operations you can handle yourself and where you’ll need expert help. You can then make a list of the support and tools you’ll need to run your business smoothly. For example, AFG provides the full suite of tools and technology that you need to streamline your operations, including powerful all-in-one broker software, marketing automation, detailed analytics and more (see ‘How AFG can help’). 
• Get your systems in shape: You’ve likely relied on the franchise brand’s systems and processes previously. Before you open your doors, make sure you have replacements in place and they work. From client onboarding, to submission, to retention efforts, everything should be streamlined and ready to impress from day one.