Tips for Real Estate Business Owners: Building the Right Business Strategy
1. Define the Business You Want
Before setting goals, ask yourself, “What kind of business do I truly want?” Whether it's a principal-led EBU (Effective Business Unit), a team of sales agents, or a robust property management department, being clear on your desired structure is the first step. Every business model has its advantages and challenges, and your strategy should align with this vision.
2. Focus on Profitability
The most profitable real estate businesses typically involve a combination of a well-structured sales team and a scaled property management department. Make sure your business structure supports both growth and profitability.
3. Recruitment Is Key
If you're a principal aiming to grow, recruiting agents who can collectively generate three to four times your personal sales is crucial. Recruitment needs to be a core focus to scale your business effectively.
4. Decide on the Team Structure
Do you want a team of high performers or a larger team of average performers? Each structure has its pros and cons. High performers generate larger individual results, but having more moderate performers spreads the risk. The choice depends on your long-term vision and your capacity to manage.
5. Design the Business You Want
Your business will grow according to the design you choose. So, take ownership of that design. Create a clear vision and work towards building a business that aligns with it. Remember, your business will reflect the energy and focus you put into its structure and goals.
6. Reality Check: What Do You Actually Have?
Many business owners are disconnected from what their business truly is versus what they think it is. Regularly review your business to see where the weaknesses lie and avoid putting excessive energy into non-profitable areas.
7. Stick to the Plan but Stay Flexible
Once you’ve established a clear vision, build a plan around achieving it. Regularly check your progress and adjust your strategies if needed. Stay flexible and open to change as you grow.
8. Surround Yourself with Mentors
Having someone like a mentor or coach to challenge your goals is essential. They help you stay grounded, ensuring you are not just chasing growth for the sake of it, but for the right reasons.
9. Be Careful What You Wish For
Growth and success come with their own set of challenges. Be intentional about the kind of growth you seek. Align your business goals with your personal aspirations to avoid creating a business that doesn’t fulfill you in the long run.
By following these tips, real estate business owners can create a path that leads to sustainable growth and success.