[abfunders]

This is actually very helpful and something we are actively discussing. Now that we are relatively well capitalized we are considering growing. I just sent a letter of intent to a landlord literally yesterday for office space that would fit 10-15 guys. I've talked to a few colleagues who have grown shops and I am battling with myself if we should grow or keep the same model.

I think having reps is more sustainable for the long term as there is always pressure to have each guy performing at high level with a 3 man shop, where as if we grow some of that pressure is alleviated. Although, I'm not sure we make that much more and put in an equal, if not more amount of work.

In your experience is even moderate growth worth chasing? Are we leaving a lot of money on the table by not growing?

If you go too big, then you'll have newbies coming in and out the door, and the pressure will be on the oldies to have a "team" that's funding and then you'll have underlings to have to spread out the commissions and start taking PSFs, and then you'll be unable to offer programs like Bluevine and factoring that offer residuals because every deal needs 10 points from the top to keep everyone happy.

- Matt at Bluevine recommended like this: Structure profit-share for the first year/initial draw/6 months/whatever, and step down in year/draw 2/whatever, and nothing after year 2 to keep them yearning for more action!
- Or let them profit-share as long as they're a W-2/partners with you. Increase profit share for dollars coming into the company. Who cares if they work at that point? If you're both making residuals of $20k/month, let everyone go golfing.

Also, as most brokers know from dealing with merchants, people are in LOVE over-extending themselves and over-leveraging! Don't do that - comfortable growth, comfortable income. Getting rich can happen, it can be a goal, but it doesn't need to happen overnight.

Disclosure: I'm not experienced in this. I'm just telling you from my experience in the co-brokering world when brokers are upset at the concept of factoring.