Sick of the daily traffic jams and overpriced coffees? The experts share the secrets to building a great brokerage in the bush.
Rural brokers may be saved from the never-ending traffic jams and daily chaos of city life, but building a business in the bush comes with its own set of challenges.
A self-described “famer who just so happens to know about finance”, Malcolm Leggat began his career in banking on Sydney’s North Shore at just 17. After quitting finance to pursue a life as a cattle farmer in rural Gunnedah, Malcolm was tempted back into the game when the owner of a brokerage his wife worked for offered to sell the couple the business.
The friendliness, community support, relaxed lifestyle and great family environment are all reasons Leggat prefers his Gunnedah brokerage to working in Australia’s biggest city, but admits life as a rural broker is not all smooth sailing.
Benita Bensch, director of Sunburnt Country Consulting, is a business coach who specialises in helping small businesses in rural Australia reach their full potential, and together with Leggat, gives brokers advice on some of the key challenges rural brokerages regularly face, and how to tackle them.
- Breaking into the rural community
Having moved to a new rural community herself earlier this year, Bensch knows first-hand the difficulties in being accepted to an often tight-knit community. Rural Australia is known for its great community spirit and support, but this can also mean long-established personal and professional ties that cannot be replicated overnight by a newcomer.
The first step is to get your name out into the community, says Bensch, which means some serious networking.
“Be involved as much as you can in all that’s going on. That includes going to events - basically everything you’re invited to. It's about being seen and being heard.”
Writing or getting your name into publications also helps, says Bensch, as does supporting community events – whether it be through sponsorship, donating your time or services or joining a committee.
“Create your own opportunities as well. Be proactive in terms of offering something that people need and want… that could be putting on drinks or putting on a BBQ or doing a survey - something that’s creating an opportunity to be in front of people and get out and talk to them.”
While Leggat says he found rural Australia surprisingly welcoming as a newcomer, he says this may have had something to do with his farming background and agricultural knowledge. It pays to do your research on the things that are important to the community to help connect with potential clients, he says.
- Dealing with down-time
This is especially crucial when times are hard for the community, says Leggat, as is the case in many rain-starved parts of rural Australia at present.
“Thirty per cent of my time in the last nine months has easily been taken up talking to people, counselling, reassuring them that things will get better… there’s a fair bit of hopelessness about, and a good portion of that has got to do with banks putting pressure on them as well and not showing any sort of empathy at all.”
Leggat tells of a bank representative who recently spoke at a large agricultural show, and told of the great harvest the area was expecting at the end of the year. It’s this kind of failure to research that can alienate clients and send them elsewhere, he says.
“It just goes to show this guy’s obviously sitting in his air-conditioned office in his ivory tower and he’s got no idea what’s happening in regional Australia… everybody is panicking, everybody.”
Regional brokers need to be prepared to be the intermediaries in situations like these, to look for alternative solutions and to go the extra mile – despite there being no immediate financial rewards, says Leggat. Maintaining these relationships in the tough times is crucial to the success of a business.
It’s especially important in rural businesses to plan for these quiet times, says Bensch, having a buffer or financial reserves and a strong cash flow strategy could be the difference between a business’ failure or success. Diversifying into other areas and utilizing other skills can also help to navigate the rough patches, she says.
- Breaking the banks’ grip
Old habits die hard, and often in rural areas families have been loyal to one particular bank for generations. This can lead to brokers being seen as the bad guys, trying to scam consumers or draw them away from the trusted family bank, says Leggat.
“There’s a saying in Australia that an Australian farmer is a jack of all trades; he’s a backyard lawyer he’s a doctor… the only thing he can’t do is lend himself money, and that’s where he needs to get advice. Of course, when he goes to his bank the only advice he’s getting from the bank is the policy of that bank.”
Younger farmers tend to be more open to the idea of a broker, says Leggat, along with those that have been stung in the past. Many clients will come to him when the banks have closed their doors on them and ask for his help, he says.
While it’s unfortunate that some loyal rural bank customers see brokers as the last resort, finding solutions and showing empathy during the tough times can bring you a client for life, says Leggat.
- Isolation
This can be a real issue for rural brokers, says Bensch, especially those that work from a home office.
Luckily, technology such as virtual training, webinars and Skype and social media can help people feel connected even though they may be a long way apart. The challenge is understanding the importance of this, says Bensch.
“Business owners do struggle between running a business versus spending time on their business, so actually being aware that they need to make time for it and then consciously making that time."
And if online networking is just not for you, get involved in what’s happening locally.
“There will be a percentage of people who only like face-to-face contact and that’s fine. It’s up to you as to what you feel comfortable with and what you want to be a part of, but I’d say everyone needs to be a part of something. It’s far too easy to become trapped within your own business.”
- Finding the right people
Going hand in hand with a smaller population is a smaller talent pool, and it may not always be easy to find brokers who have the specific skillset you’re looking for.
The first step in getting the right people interested in your business is understanding your own culture, says Bensch.
“Know what you’re offering them,” she says. “And for it to be an appealing offer you need to communicate that you really understand what you’re about and why you need that candidate to be a part of it. That is far more appealing than a business that doesn’t really know who it is.”
And you can’t expect the talent to come ready-made, says Bensch. Be prepared to invest the time to train people with the right attitude.
“If it is a challenge to find the right people then we need to look at how can we sidestep that and perhaps attract people that we can then help to fit within our business.”
Despite these considerations, both Leggat and Bensch agree life in the country is the clear preference. With a little planning and understanding, building a great business in the bush need not be a challenge at all, says Bensch.
"I choose to run my business from a rural area because I love living in the country. I think community spirit is something very special about living in the bush that may come as a surprise to someone who moves ot a rural area, and we have other joys, of course, like having space and probably a simpler way fo life, a less hectic way of life... so while there's some challenges there are also some wonderful opportunities and some wonderful experiences and joys to be found."
Benita Bensch is a business coach, brand consultant, accomplished speaker, facilitator and primary producer. The Sunburnt Country Consulting slogan ‘building better business in the bush’ embodies what Benita stands for.
Do you have experience running a rural business? Are you considering it? What are the advantages and challenges? Share your thoughts below.
