The existence of Sushil Finance dates back to the year 1982. In the year 2009, its partnership and association programs in the form of Sushil Finance began. Despite its relatively shorter presence in the capital market industry, the firm has more than 600 franchisees in over 200 Indian cities.
Sushil Finance Franchise Review
It has over 37000 active client base and is enlisted among the top 50 Indian stockbroking houses. Since the needs of various business partners vary, this firm provides different models to suit the diverse business requirements of every individual. Its offline presence can be seen across 22 states in India.
The stockbroker has been working towards improving its technology in the form of the trading platforms it has to offer to its different stakeholders, be it clients, franchise, sub-brokers partners, master franchise etc.
Anyone who intends to start a business with a renowned firm can grab this opportunity to flourish in his/her career. Before deciding to opt for this business model, you must know its various aspects.
In this article, we have made a comprehensive coverage of its business models, initial investments, revenue sharing ratio, offers, benefits as well as drawbacks.
Sushil Finance Franchise Business models:
Sushil Finance provides 4 business models to its potential partners so that they can choose the one that best suits their requirements. With these many models, Sushil Finance is one of the very few stockbrokers in India which provide such flexibility in the different business partnership modes potential businesses can avail.
The details about these models are explained below:
Sushil Finance Centre Partner model:
The main function of the partner in this business model is to acquire new clients and provide them with the necessary services. The clients have the option to call and do trading. So, you should be prepared to carry out trade execution on behalf of such clients.
Strong sales support is needed to be provided to the clients so that they feel the partnership to be reliable enough to continue with it on a long term basis. This will ultimately prove to be a win-win situation for both parties.
Based on the functions, the model bears resemblance with the sub-broker or the franchise model. This model suits the new inexperienced members as well as those who are the sub-brokers with other stockbroking firms.
The clients are offered various products in this business model, such as equity, equity F & O, commodities and currencies futures.
Sushil Finance Resident Partner model:
The Resident Partner model of Sushil Finance Franchise doesn’t require you to set up your office infrastructure. In this case, you can carry your business operations from the broker’s office itself. You need to acquire new clients in this business model just like the previous one.
The business operations can be carried out smoothly through the dedicated trading terminal which the broker provides you. Equity cash, derivatives, currency futures and commodities are the products which you can trade in this partnership model of Sushil Finance Franchise.
Persons who are already sub-brokers, mutual fund advisors, sub-brokers, insurance agents, etc are suitable for this business model.
Sushil Finance Managing Partner model:
In this business model of Sushil Finance Franchise, the operations which you need to perform are just like the ones in the Center Partner model. The extra function in this partnership form involves advising the clients and taking the help of respective dealers for the trades execution. This is how you are going to handle the stockbroker’s clients.
You need to ensure the smooth functioning between various dealers, Centre Partners, and their clients after you are mapped to them. In certain cases, it may be needed to place orders through a dealer for a client.
This model doesn’t need setting up your office infrastructure as you can work from the broker’s office, your home or any other place you feel convenient.
Sushil Finance Introducing Partner model:
If you are someone who wants to partner with Sushil Finance Franchise besides running your own business, then this is the model for you. It is because you are not bound by any restriction in this form of partnership.
All you need to do is just get the potential clients introduced to the stockbroking firm.
After you provide the business leads, all the functions including the acquisition of clients, providing the services, advice, etc are carried out by Sushil Finance. This model does not need infrastructure investment or hiring employees for carrying out business operations. If you manage to add new clients consistently, you can get a fixed brokerage.
Sushil Finance Franchise Cost:
You should be ready with an initial investment of ₹1 Lakh as a security deposit to start the franchise business with this full-service stockbroker. You will get this upfront cost back when you decide to quit partnership.
Besides the security deposit, a one-time registration charge of ₹2360 is required for every segment. So, more the number of segments you choose, more the will be this one-time registration cost.
Another payment of ₹250 is needed every month for using the firm’s terminal software through which the trades can be placed for the clients.
Thus, from a competitive point of view, Sushil Finance franchise can be seen as a reasonably priced stockbroking business partner.
Sushil Finance Franchise Revenue sharing:
The revenue share which you will get on partnering with Sushil Finance Franchise depends on the business model you have opted for and the net brokerage generated from the business.
Generally, you will be entitled to 70% of the generated revenue and the remaining 30% will be kept by the company. Thus the general ratio comes to 70:30 in the NSE Futures segment.
Similarly, in the case of currency, commodity, options segment, the revenue sharing is done equally between the business partner and the main broker, i.e in the 50:50 ratio.
In case you are able to get a good turnover in your business, you can try for negotiation of the revenue share to get things in your favour. Thus you will be entitled to a greater revenue sharing percentage in this case. In the Introducing Partner model of Shushil Franchise, the business partner can get 20%-50% revenue share.
In certain setups, the party keeps the total brokerage and there is no revenue sharing in such a model. The only thing, in this case, is that the partner needs to generate a fixed amount of income for the broker consistently.
Furthermore, the revenue sharing also depends on the partnership model you are involved in. While the franchise model gets you the best of the deals, the introducing partner gets a minimal cut since the majority of the business operations are carried out by the stockbroker itself.
Sushil Finance Franchise Eligibility criteria:
Before opting for any business model, you need to fulfil some basic criteria. These are explained in the following section:
- You should have strong skills in selling as well as acquiring new clients.
- You should be capable of making an initial refundable security deposit of ₹1 Lakh during the sub-broker registration process.
- In order to place trades for your clients, you will be using a terminal software that calls for a monthly charge of ₹250 until you are in the partnership business.
- Costs related to one-time registration charges and the infrastructure set up needs to be handled by you.
- Office setup is needed to carry out all the business functions. But you also get the option to do this from your home also. All you need to focus on is team management as well as client acquisition (In the Sushil Finance Resident Partner model, it is not necessary to set up your own office).
- All the relevant documents have to be submitted for registration by getting them attested by a Chartered Accountant or a Notary Officer
- Your educational qualification needs to be at least 10+2.
Sushil Finance Franchise Advantages:
The benefits which you can get by joining the Sushil Finance Franchise are enlisted below:
- It has good accessibility owing to its wide offline presence in the country.
- Clients are attracted because of the wide range of products which they can get for investment purpose.
- It has well-established itself in the share market, so you can leverage its brand name to acquire clients easily.
- To carry out all the business related function such as getting new clients, providing the necessary services, etc, needs proper know-how for which the firm provides training,
- You will have a dedicated relationship manager assigned to you, to provide you assistance at any time.
- The firm consistently provides you with support related to marketing, business development as well as research, so as to ensure that you can stay at par or ahead of the other players in the competitive stockbroking industry
Sushil Finance Franchise Drawbacks:
Every stockbroking house will have certain advantages as well as disadvantages in their business models. On knowing both these aspects, you can take a well-informed decision whether to join the business or not.
The drawbacks of joining this stockbroking firm are as follows:
- The marketing activities are comparatively less with respect to other players in the industry.
- There are only a few parts of India to which this brand recall value is limited.
- Some improvement is necessary for it’s trading platforms i.e. technology although this is the current focus of the broker, as mentioned above.
Sushil Finance Franchise Offers:
There are some offers which you can get on partnering with Sushil Finance Franchise:
- In less than 9 days, the sub brokership account can be opened.
- It provides interesting revenue-sharing ratios.
- You can avail loan against the shares.
- Whenever you need to set up an infrastructure for your business, you will be getting assistance from the firm.
- You can avail offers on brokerage. Its brokerage plans are quite flexible in nature.
- It provides an option to make the payment of the deposits in instalments.
If you are looking to become a sub-broker or a stockbroking business partner in general, let us assist you in taking the next steps ahead.
Just fill in some basic details in the form below to get started:
Sushil Finance Franchise FAQs:
While deciding to join a partnership model of any stock broking house, numerous questions may pop up in your mind. So, to make the process easier for you, we have answered different frequently asked questions in the following section:
What are the business models offered by Sushil Finance Franchise?
This full-service stockbroker provides 4 business models Introducing Partner model, Finance Managing Partner, Finance Resident Partner, and Finance Centre, Partner.
What is the initial investment needed to partner with Sushil Finance?
An initial security amount of ₹1 Lakh is needed which is refundable in nature. Along with this, some investment needs to be made in setting up the infrastructure. Other charges include one-time registration charge of ₹2360 for every segment you choose and ₹250 for the terminal software charge.
What revenue share can I expect after partnering with this firm?
In general, you can expect a revenue share of 70% of the total amount generated from the business in the NSE Futures Segment. But there is an equal revenue sharing between the broker and the partner in case of currency, commodity, options segment. Since the Introducing Partner model has the least responsibilities, it has only a 20%-50% revenue share.
If you succeed to negotiate the revenue sharing ratio properly, you can get things in your favour. Though the business executives of the firm will be reluctant for negotiation, yet you can try to do it.
What are the products and services offered by Sushil Finance Franchise?
Being one of the oldest full-service stockbrokers of India, this firm offers trading and investment in equity, currency, commodity, mutual funds, insurance, IPO, etc.
What is the process of registration in Sushil Finance Franchise business?
This involves a few steps enlisted below:
- A form needs to be filled up which seeks all your basic details. Once this is done, the corporate team of the company will call you. You can ask them if you have any queries.
- When this first screening call is completed, a face to face meeting will be fixed in which the requirements of the business will be discussed. If you are fine with everything, you will have to sign a business partner form.
- Relevant documents need to be submitted along with the security amount cheque. After this, the documents will be sent for verification.
- When the verification is fone, you will get a token ID which indicates that the partnership has neem successfully established. Now, with the help fo back office as well as the firm’s trading platforms, you can easily perform the business operations.
What are the documents needed for the registration process?
The documents necessary for the registration process includes:
- PAN card
- Aadhar card
- Certificates showing proof of your educational qualification.
- Proof of your residential address.
- Proof of your office in the form of its electricity bill, telephone bill or bank statement.
- A few photographs of passport size.
- Chartered Accountant’s reference letter. Make sure to get all the documents attested by a Notary officer or a Chartered Accountant or else there are chances of them getting rejected.
Why should I choose Shusil Finance full-service stockbroker?
Here are the reasons to opt for this full-service stockbroker:
- You can get better exposure since is a developing organization.
- You get regular training for acquiring and serving customers so that you can know the right way of making the products and maintaining healthy client relations.
- It provides financial and commercial support.
- It has a wide product profile and numerous business models to choose from.
- You can share the research report, tips, and recommendations provided by the firm with your clients.
If you wish to learn about the franchise and sub-broking partnership models of other prominent stockbrokers in India, here are a few references for you: