A direct selling business involves selling products or services, typically in non-work environments like cafes or over phone calls. Commonly, direct selling agents connect with reputed companies in their niche and sell products on their behalf. Companies get to expand their reach while DSA agents earn commissions in exchange for their services. While it is true that setting up your own DSA business will maximize your income potential, you also have to stand out among a sea of competitors. Before starting a DSA business, you have to ask yourself if you want to pursue it as a full-time career or a side hustle. You have to set realistic goals, secure funds, determine what products you want to sell, and plan for the long haul.
Essentials of a loan DSA partner business plan
A business plan is one of the most important essentials to start a DSA business. It shows a clear roadmap and helps in securing investors for your company. A business plan helps you to set realistic goals, develop strategies, and plan your existing resources. Here’s a quick breakdown of the different components of a DSA partner business plan to help you begin your venture.
- Executive summary: The executive summary of your DSA partner business plan comprises a short overview of your business goals, what products and services you offer, your target audience, and how you plan to finance it.
- Company description: This section goes into detail regarding your company’s goals, mission, and history, requiring a more data-driven explanation of how you plan to conduct business in the next five years.
- Product description: The product description section of your DSA partner business plan, as its name suggests, explicates the nature, features, benefits, and unique selling points of your financial products.
- Target audience: To run a successful DSA business, you must be very clear on the kind of audience you want to target. If your loan products are largely aimed at new retirees or fresh graduates, you must list their purchasing behavior and lifestyle preferences. It will help you understand if you are targeting the right demographic and whether that is yielding any results.
- Marketing plan: The marketing section covers everything from your product pricing, and advertising strategy, to the kind of marketing channels you want to target. If you plan to launch a blog or use social media, you have to include it in your marketing plan.
- Competitive analysis: Understanding the strengths and weaknesses of your competitors will help you pinpoint the highlights of your products and services. You have to come up with strategies to position your products such that prospects are compelled to invest in them.
- Financial foresight: It is important to include financial projections in your DSA partner business plan, including projected revenue, expenses, and profitability. This will help you to set realistic financial goals and plan your resources accordingly to bring in more products, and DSA partners, and tide over the rainy days as well.
- Operation plans: This section of the business plan should detail how you plan to run your day-to-day business like answering customer queries, managing your product collection, stocking up the inventory, and facilitating improved sales processes.
- Risk assessment: This section of your DSA partner business plan is an extension of the finance section that draws up possible risks the business may run into in the future and lists the possible solutions it can implement to mitigate those risks.
How to set up a loan DSA business in India
When you work as a DSA agent for some lending firm, your earning possibilities are still limited as compared to beginning your own DSA company. To set up a DSA business, follow these steps.
- Apply for DSA company registration: The first step to begin any venture is to legalize it. Choose a name that does not resemble any other registered DSA company in the market and does not violate the provisions of emblems and names. Next, you have to fill in Form 1- Declaration of Compliance, Form 18- Notice of situation of the registered office of the company, and Form 32- Particulars of the Director’s, Manager, or Secretary and submit it at the Registrar’s office. Arrange for the drafting of the Memorandum and submit all your KYC identification documents in order to apply for your DSA company registration. You may also have to show your DSA business plan to convince the registrars of your business’ efficacy.
- Develop ties with reputed financial institutions: The most important aspect of setting up a DSA company is to collaborate with reputed lending institutions. You can offer a wide range of high-quality loan products, credit card schemes, insurance, and investments to your prospects. Since as a DSA company, you can work with multiple lenders, you can also maximize your income potential to the fullest.
- Generate DSA codes: After you receive the seal of approval from the Registrar’s office, you must generate a DSA code. It is the written agreement that you will give your DSA partners to ensure that they fulfill their responsibilities. It will contain a list of all the loan products, insurance policies, and investments that you want to offer to your clients and their respective DSA partner commission percentages as well.
- Hire employees: The final step to establishing a DSA company is to hire DSA partners to expand your company’s reach, telemarketers to make calls to prospects, copywriters to draft sales pitches, and other professionals to handle accounts and operations.
Benefits of working as a DSA partner
It is always better to work as a DSA partner for a while and know the ins and outs of the industry before starting one’s own DSA business. As a DSA loan agent, you can polish your communication and negotiation skills, which will later come in handy when you are running your own business. You will also acquire tons of knowledge about the features and benefits of different kinds of loan products, credit card schemes, and investment policies. You can apply to work as a DSA agent in Andromeda Loans. It is one of the most reputed lending institutions in the country, that combines financial expertise with cutting-edge technology.
Another advantage of working as a DSA partner before starting one’s business is that you can build an excellent social network. When you begin your own venture, you can ask for advice from your mentors at the previous DSA firm. If you worked in the finance industry before launching your DSA business, you will have contacts, who are financial planners, tax advisors, and chartered accountants. You can ask them to spread the word and pitch your products to them.
Launching a DSA business requires determination and commitment. You have to make sure that you have a well-stocked inventory i.e. tie-ups with quite a few financial institutions to offer the latest loan products to your prospects. To run a DSA business, you must also be aware of your competitors and try to stand out over them. A successful DSA business not only ensures a hassle-free application process for their prospects but also guides their loan applications to make informed decisions.