Planning to start your own Sub Broker Business?
The stock market is a means to grow your wealth exponentially in the short term. It draws the attention of people of all ages and income demographics because you can leverage small investments for significant returns.
In this article, we’ll go over some key tips to follow in the initial stages for all aspiring Sub Brokers.
Who Is A Sub Broker?
Currently, there are roughly 50 stock brokers in India that are officially registered with the National and Bombay Stock Exchange. This includes Zerodha, ICICIdirect, and Upstox amongst others. A sub-broker, unlike a broker, is not registered with the stock exchange but act on behalf of the trading members, or major brokers to assist investors. All shares bought and sold during the trading session are processed by sub-brokers for a small commission or brokerage. Working as a sub-broker has become a lucrative earning opportunity. Here are some key tips for starting your own Sub Broker Business.
#1. Calculate Your Expenses
The very first thing you need to do is calculate your capital expenditure and plan your cash flow accordingly. This can include a minimum base deposit paid to the stock exchange, registration fees, and if you’re setting up an office your commercial expenses too. Make a step-by-step plan of all the expenses you need to pay to get things started and give your business its 1-year timeline. Planning is everything.
#2. Choose Your Target Audience
You will need a marketing and outreach strategy that’s custom-tailored to the demographic you’re aiming at. You also need to consider the range of demographics your business model and marketing strategy can resonate with to maximize your customer base. Picking your initial audience is tricky. You could create a premium or exclusive franchise for ultra-high-net-worth individuals to manage their financial portfolio and provide consultancy. Or, you could offer your financial services to the average educated person.
#3. Create A Natural Database
This is arguably the most important step for any new sub-broker agency. A natural database will contain a list of all the people from your target audience whom you wish to make into customers. Your natural database includes all the professional contacts you already have, family members, relatives, friends, and the contact details of new clients you make through networking.
#4. Name Your Company
You need to find a catchy, memorable name to give your business that can appeal to your target audience and suits your firm’s long-term vision. Once you’ve picked a name all that’s left is making the brand official. There are some specific registrations and legal formalities you will need to go through such as the SEBI registration, and approval from the stock exchange and clearing corporations.
#5. Begin Cold Calling
Now that you have your business registered and natural database the final step is to begin cold calling to build your customer base.
Starting up a successful sub brokerage firm is a long and arduous journey but well worth the tiresomeness when you consider the potential for long-term growth. To know more you can contact us.
