Are you trying to scale your real estate business but not sure how to do it? Are you thinking about hiring a developer to have a website with great real estate web design to begin scaling your business?
Scaling is great for any business because this means that you’re growing your real estate business. However, the reality is, what most real estate agents don’t know is that scaling is a huge black hole. This means that scaling will require you to burn a huge amount of money quickly. So if you thought that getting your real estate business to where it is now was difficult, then scaling is a lot harder than that.
There are multiple factors that you have to consider when you’re scaling your business. One of the first few things that you have to consider is licensing software or applications that you’ll need to purchase for your team. You would also have to consider where your team is actually going to work. Last and definitely not least, you have to consider their payroll as well.
One of the biggest mistakes Realtors commit when trying to scale their business is that they usually end up working for less money because they executed scaling without the proper understanding of how to do it.
Whether they scaled their business without proper guidance, scaled too soon, or executed it out of sequence, there are a number of ways scaling can go wrong. As nice as the thought of scaling is, if it is executed poorly or incorrectly, you will only end up burning through your cash reserves and can even end up losing your business.
Scaling a business can sound extremely appealing for a lot of business owners. The mere thought of taking yourself out of the day-to-day grind of working in your real estate business is the ultimate goal for most entrepreneurs.
Imagine being able to start leading a group of agents or a team of individuals towards a common vision is one of the most appealing things about being an entrepreneur.
That being said, Robert Crabtree explains in his book, ‘Simple Numbers’, that scaling to $5 million in revenue is one of the most difficult things to do. He further explains that scaling between $2 million to $5 million is a massive black hole.
This is simply because you’re going to encounter this very weird balancing act where you’re going to need to be making enough to hire new talent but also not be hiring fast enough to make sure that you don’t go through all of your cash on hand.
Depending on how prepared you are for this part of your journey, the balancing act will either make or break your business. To help you out, here is a list of secrets and tips on how to successfully scale your business if you’re just starting down this path of bringing in some new talent to build your team.
This may seem like it’s a no-brainer but it is easily the first and biggest misstep of any Realtor who is trying to scale. That being said, not having enough time in the day is not a viable excuse. This just means that you don’t know how to manage your time appropriately.
The solution to this is to time block. Whether it’s for your lead generation, lead nurturing, fulfillment, or working on deals, you should always block off time for each specific task. Furthermore, you should also be blocking off time for personal development, time with family, and also for doing the things that you enjoy.
PRO TIP: Plan your week in advance. That means blocking off some time on a Sunday and listing out all the main tasks that you need to accomplish on your calendar. This way, when the week starts, you already have a plan of what to do.
Marketing Strategy – create inbound strategies to better position you for the long game.
Systems Implementation – we design and implement systems for you to buy back your time.
Brand Building – position you as the thought leader and authority in your community.
Auditing what you do on a regular basis is important to scale your real estate business because what can be repeated can be delegated. Take what you have planned to execute for the week and log everything that you actually end up doing for that specific week because these are two entirely different things.
Planning and logging are two different things.
At the end of each week, you then have to audit every single task that you did and highlight the repetitive tasks. You see, one of the first and cheapest things that you do when attempting to scale is bringing on someone to your team to offload redundant tasks.
This is also called buying back your time.
This idea is sound and this idea is that you need to create standard operating procedures for each of the tasks you’ve identified.
You have to list out what part of the business each SOP affects, what its objective is, what are the instructions for each step of the process, who’s taking ownership of each task, what is the definition of done, and how do you measure the results.
Once you are able to define these items, then and only then should you be hiring some fresh faces to grow your team.
This means that you can’t be overly eager to hire new team members. Take your time and hire the right person.
Warren Buffett, when hiring new people uses the 3 I’s which stand for intelligence, initiative, and integrity. Hiring the wrong candidate will only affect you negatively in the long run. And this is why you have to take your time and do it right the first time.
Training and onboarding new team members can take up a lot of time and time is money. By hiring the right people, you avoid wasting resources on people that won’t last within your organization.
PRO TIP: A bad hire doesn’t turn into a good team member over time. This is just human nature and you can pick this up fairly quickly.
You see, in order for your business to expand exponentially, you need to be able to trust your team. If you can’t trust a team member, that is a clear indication of a weak link. And it will cost you more, in the long run, to try to make that weak link stronger. And in most cases, they usually stay the same. So once you’ve identified a weak link, get rid of that person ASAP.
Scaling your real estate business is difficult but it’s one of the things we’re good at. We actually have a system for it. If you’re interested in learning more about it, then click then schedule a strategy session with our team.
But if you’re not really to scale just yet, then I highly recommend that you at least join our free Facebook Group where we talk all things systems, digital marketing, and websites.
Emmanuel here and my goal is to empower 1 billion realtors with tools to generate business online. Think you can be one of them?
Emmanuel is the CEO of Square 1 Group, a boutique agency that helps real estate entrepreneurs build a unique brand online. He has been in the real estate digital marketing industry for over a decade and has helped hundreds of real estate entrepreneurs grow their business. He ensure that Square 1 Group is able to design, build, and manage custom-built lead-generating websites.
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