Run Your Business Like a Business
There is a big difference between running a sales desk and a business. A decade ago, you had two jobs: find clients and sell houses and the brokerage looked after everything else. Today, being a real estate agent is much more complicated than ever.
Over the past several years, agents have demanded more lucrative splits, which at a glance seems beneficial, but it is a double-edge sword. If brokerages make less money per agent, they can’t afford to offer as many services. You may end up with more money per transaction, but you are expected to do more yourself. Running a successful business has many aspects that you either need to get very good at yourself, or you must hire others to do for you, including:
- Lead Generation
- CRM Systems
- Market Research
- Financial Management
- Strategy & Business Planning
Most of us can’t be good at everything, so we must hire others to do certain parts of our business. Trying to do marketing on your own is like a FSBO trying to sell their house themselves. Can you do it? Maybe. Is it the best way to go about it? No. Trying to do your bookkeeping on your own is not a good use of your time. There are others who can do it quicker, more accurately and save you money in the long run.
If you want to run a successful business, not just a sales desk, then you must apply strategies that will benefit you in the long run. The problem is, most agents only focus on short-term wins (the deal that is in the works right NOW). If you only focus on the day-to-day activities of your business, you are destined for a lifetime of roller-coaster income, being overwhelmed, and living in scarcity.
It is easy for experts to tell you that you need a long-term strategy, but it is a balancing act. Implementing strategy requires both time and money. It is a constant struggle in a small business to manage your immediate need for cash flow, let alone investing for the future. I get it! But running a successful real estate business requires the right skills and surrounding yourself with the right people.
Here are 5 tips to help you build a better business:
Focus on finding the right people
Most agents focus on “how” they will get something done rather than “who” to hire to do it for them. Think of your service partners (photographers, stagers, handymen, appraisers, home inspectors, cleaners, landscapers) as part of your extended team. Every contact your client has with them is a reflection on you, so only recommend the best people.
Learn to delegate
You can’t do $15/hour administrative work and expect to earn a six-figure income. You also can’t make wise financial decisions unless you hire the right accountant. When it comes to marketing, you are not a graphic designer or a copywriter, so why would you do it yourself? I realize that hiring outside help costs money, but in the long run, you will save time and money by hiring the right people. It will allow you to focus on being a rainmaker. The more time you have for prospecting better clients, the more money you will make. Surround yourself with experts and your business will skyrocket. The question you must ask yourself is: Are you hiring the BEST people for your team? If you had to hire them again, would you, or are you settling? It is easier to stick with GOOD than it is to spend time searching for GREAT, but great people are what you need!
Hire a great coach
To really improve your business, you should consider investing in coaching. When you work with a business coach one-on-one, they give you specific advice for your business based on your specific market, your strengths, weaknesses, and personal goals. The earning potential in our business is too high to go it alone. You need someone to bounce ideas off of who will ask you the tough questions and encourage you to see things differently. When you have a business coach, your life gets easier because they do all the strategy work for you. Rather than trying to do everything yourself, they get you to focus on the activities that drive the most income, and they recommend which services you need to delegate and how to find the right person to do it. They become a trusted partner in your business.
Focus on long-term and short-term
Most agents wake up every day and wing it. Running a business is a marathon, not a sprint. Every decision you make should focus on future benefits rather than short-term wins. Some strategies that help you succeed long-term may actually hurt your short-term business. The energy that you would typically spend on NOW business must be refocused on doing activities that you don’t see immediate benefit from. This is why most agents are not good with marketing. It is a long-term strategy to generate leads. Most agents don’t have the perseverance to spend time and money on marketing when they don’t see immediate results. Is marketing a necessary strategy for long-term growth? Absolutely. Do most agents do it well? Absolutely not. A good starting place is to write a list of your long-term strategies for every part of your business (lead generation, marketing, customer follow-up, finances, market research, etc.). If you don’t have strategies for every part of business, you will have weak spots. You are only as good as the weakest link in your chain.
Review your strategies quarterly
Be a student of the market. Pay attention to trends and cycles and continually ask yourself if the strategies you are using are as effective as you want them to be. Will your strategies continue to work if the market changes? If your answer is no, it’s time to change things up. Don’t run your business on autopilot. Review your strategies quarterly to make sure you are focusing on the right activities, and you have hired the right people to perform them. This is where a coach can be invaluable.
If you want more information how to make 2022 your best year ever, please visit https://leadersedgetraining.com/agent-virtual-training/.
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