A New Way to Exponentially Grow Your Real Estate Business
There is a conversation that is not taking place in the real estate industry; at least not often and by many. If you happen to be a part of the conversation, at first glance it will appear daunting and way out of your reach or even ability to comprehend. This conversation might seem irrelevant to some but can be transformational in the way you think about growing a sustainable and profitable real estate business.
By the way, have you noticed that I’ve been referring and emphasizing the word business?
My father, in addition to being an educator, was a serial entrepreneur. I learned many lessons from him early in my career. One of the most notable of them all was a comment he made about the purpose of business. He said, “the purpose of building a business with the intent to sell it”.
This lesson has really stuck with me during my career and to this day still resonates with me. Admittedly, I do not necessarily agree that the entire purpose of business is to simply build it to sell it. How would your focus change if you adopted this way of thinking and started building your business with the intent to sell it? If you believed that the final outcome would be the opportunity to get a big fat seven or eight figure check at the end, would you change the way you work?
The first thing you might come face to face with is the fact that your business can no longer be dependent on you. Nobody is going to buy a business if YOU are the business. In order to create a saleable entity, the experience your client has must be replicatable and not dependent on you.
Most real estate agents believe that nobody can do what they do and clients are choosing to do business with them.
I hate to burst your bubble, but your clients do business with you because of the experience you create for them. It’s not you. Starbucks, Nordstrom’s, Ritz-Carlton, Amazon, Facebook, Apple and more have created a consistent experience for the consumer that is not dependent on the owners.
When you can begin thinking about building a business to sell, that is not dependent on you, you will gain a new level of control over your business.
Here are several key considerations when it comes to building a real estate business to sell.
1– Know and Live Your Brand.
You must know your brand and more importantly, what is the entire customer experience you are creating. In many respects this is your core values, the way you interact with your client and how you want them to feel wrapped into an experience. At Realty Executives, we have several core values that impact how we interact with our agents. Specifically, We Serve and We Work Smarter. In addition, we understand how important it is for our Executives (what we call our agents) to have easy access to the people who are supporting them. All our Executives have our all five of Brokers personal cell phone numbers as an example. We make it easy for them to work and connect with us. In addition, we are continually reviewing and improving our systems with the intent to make their lives easier. Our soul focus is helping them succeed. This all happens without the day to day involvement of the owners.
Our Ultimate Purpose Statement states:
We deliver the ultimate Executive experience that exceeds expectations, attracting and retaining experts. This statement ensures that the entire team at Realty Executives is working to deliver that same experience for every agent on our team.
2– Your Database is Your Golden Egg
- In most service-oriented business, like real estate, your database is your only asset, except your system which I will cover in a moment. The deeper your relationship to your client as reflected by a quality database will add value to your organization. Your list must be more than just names. Rather, they must be people who are loyal, committed and engaged customers. If a buyer knows your business is going to produce $500,000 per year in commissions because of your history of interaction with your database, you have created some incredible value to a prospective buyer.
3– There is a System for Everything
The key to a well-orchestrated business is getting how you do what you do out of you or your team members heads and on paper. In order to create marketable value that can be sold, your documented and replicatable system must be reliable and capable of producing results regardless of who is operating them. The key to success of any business is dependent on the quality of its systems. Great systems ensure certainty of great results.
Selling a real estate business can be an option if you employ this strategy, but understand it is not required. Regardless, following the approach about will most certainly improve your business and results dramatically.
If you would like to learn more about building or buying your real estate business, please fill out the form below.