iscover
In a recent episode of Business Accelerator, host Alex Whitlock and co-host, Broker Essentials’ founder and director, Jason Back, dove deep into why the most successful brokers aren’t those who never fail, but those who learn, adapt, and grow from their mistakes.
“We need to see failure as a tuition, not a tragedy. My biggest learnings have come from my failures, not my successes,” said Back.
Identifying ‘hidden’ failures
One of the biggest challenges for any business owner, according to Whitlock, is simply recognising a failure in the first place. Failures have a tendency to hide, often masked by other areas of success or buried under the mantra of “try, try again”.
He illustrated this with a powerful personal example from his own broking business, Finni Mortgages. The initial business model was built on referrals from accountants – a conceptually sound idea targeting high-quality leads.
Despite significant investment of time and money, the model was fundamentally flawed – referring clients wasn’t a primary concern for accountants. The failure was admitting this hard truth, pivoting the entire business to a niche as investment specialists and subsequently building a highly successful, multimillion-dollar settlement operation.
“One of the hardest things, particularly as your business becomes more complex, is actually spotting a failure because failures hide,” Whitlock said.
The 4 common failures in a broking business
Back outlined the four most common areas where he sees brokers encounter challenges or failures:
- The flawed business model: Chasing volume over profit is a classic pitfall. The telltale sign? You’re writing more and you’re earning less. This often pairs with ignoring niche opportunities, trying to be all things to all people instead of excelling in a specific, defined area.
- People problems: This encompasses hiring too late, hiring the wrong staff, and holding onto poor performers. Many brokers enter the industry to be advisers, not people leaders, and the transition from “doer” to “leader” is a common struggle.
- Compliance and process breakdown: Poor file hygiene, inefficient systems, and not following your own processes are costly mistakes. Inefficiency here drains profitability and increases stress.
- Client relationship mistakes: This boils down to poor communication – failing to set clear expectations at the start of a relationship about how and when you will communicate throughout the client journey.
How to fix it: A 3-step recovery plan
Recognising a failure is only half the battle. The next step is to fix it. Back recommends a simple but powerful framework:
- Own it fast: Don’t hide from the issue. Acknowledge the frustration and communicate it to your peers, your aggregator, or a mentor. The sooner you confront it, the sooner you can solve it.
- Debrief it (Blame the system, not the person): Instead of asking “Who failed?”, ask “Which system failed?” Was it your client acquisition system bringing in unprofitable leads? Was it a missing step in your process causing delays? This removes blame and focuses on constructive solutions.
- Implement a safeguard: Fix the broken system. This could be introducing a new checklist, automating a task, refining your client onboarding questions, or ending an unproductive referral partnership. Rely on process, not just hope that behaviour will change.
The key takeaway: Vulnerability is a strength
The entire conversation circled back to a crucial mindset shift: being vulnerable and curious is a professional strength, not a weakness.
“Being vulnerable is not a weakness. Being vulnerable to me is an absolute strength because it opens up emotionally and intellectually to opportunity,” shared Back.
It is this openness to scrutiny – of both triumphs and failures – that allows brokers to refine their operations, build more profitable businesses, and ultimately, achieve long-term, sustainable success.
[Related: Business Accelerator: The broker’s guide to diagnosing and fixing business breakdowns]
