Take a look at how joint venture partnerships can and do work in the business world for the mutual benefit of all participants and their customers.
For mortgage broker Graeme Salt, of Origin Finance, joint venture partnerships have enabled businesses and their expert directors to come together and broaden their combined service offering to the market, with each enjoying financial gains from the arrangement.
“I’m a director of the Futurus Group which has a number of brands under it – Origin Finance, Chan and Naylor Finance and also Walker and Miller Training, which many … brokers will use over the years,” Graeme told My Business’s sister publication, The Adviser.
He says the tie-up with Chan and Naylor, which occurred 18 months ago, resulted in several benefits for his own business, as well as those of his partners.
“It’s been beneficial in a number of ways. First of all, financially. It’s been profitable from day one and been extremely good,” Graeme says.
“Secondly, it’s given us as our group, as the wider Futurus Group, a springboard to grow into a national organisation. We had the Walker and Miller Training company, which was operating interstate, but essentially, we [as a mortgage brokerage] were a NSW group.
“From being entirely NSW and ACT, we’re close to ten brokers in Queensland, ten in Victoria, a couple in Perth. No one in South Australia yet – sorry Adelaide, that’s gonna cost us some points – but that’s gross trajectory.”
In addition, Graeme says the brokers within his business, Origin Finance, have been able to upskill as a result of the opportunities and knowledge-sharing between each of the different brands.
“A lot of our brokers are now starting to deal with a lot more sophisticated structures and commercial investments as well, which they haven’t done in the past,” he says.
Another benefit of operating in partnership with an established firm is the lower risk profile and instant client access, as opposed to hiring in-house to expand your offering into unfamiliar territory and build up new clients from scratch.
Graeme says there are clear benefits for clients too.
He says Futurus Group clients now enjoy a more thorough overview of their financial arrangements, given the obvious links between purchasing property – whether to live in, for business purposes or as an investment – and the intricate web of taxes that apply to all things property-related.
The move has been a win for everyone involved, Graeme says, with brokers and accountants able to cross-refer clients as and when the client need arises.
Adam Zuchetti is the editor of My Business, and has steered the publication’s editorial direction since early 2016.