It sounds easy enough; however, many agents quickly fall back into the daily mindset of concentrating on the next transaction.  in order to accomplish your long-term goals you must first understand where you are now.  only then, will you be able to build the foundation that will support you into the future.  walkthrough these 6 steps and you will be on your way.

1: What do you do for a living? 

We have asked this question 1000’s of times over the years, and if you are like most real estate agents your answer will be similar to one of these responses:

  • I sell real estate
  • I am a Realtor
  • I help people find their dream homes
  • I am a real estate salesperson

Make the Mindset Shift Now to….

I Own a Real Estate Business!

When you truly internalize this principle, you will experience a shift in the way you operate. It is more than a mindset shift. You will become that business owner who thinks and operates from a different level. Most real estate agents operate in a sales only mode where the business is generally running them.

Make this one of your daily affirmations: I Own A (Successful, Profitable) Real Estate Business or I am a real estate business owner.

If you decided to purchase and successfully run any franchise business (like a Subway or Planet Fitness) you would have a budget, know your facilities and labor costs, product costs, and how to create and maintain a P&L statement. When you think and act like a fortune 500 company, then you will start to make decisions like a true business owner.

2: Thinking & Acting Like a Business owner means:

  1. You have a business plan, budget, and forecast for revenue generation
  2. You track your actuals vs. projections/forecast
  3. You maintain a Profit and Loss statement, and other financial and business metrics
  4. Your business is organized as a corporation (LLC, PC, S Corp for tax purposes – whatever is best for your unique scenario and as advised by an attorney or CPA)
  5. You have all of the essential business and real estate systems in place

All 5 of the aforementioned items are vital to ensuring the stability and growth of your business.  They are also, to most anyway, the details that get missed.  It may be because they don’t seem like revenue producers at first, and let’s face it unless your background is engineering or accounting, they probably aren’t that much fun.  You must face these tasks head on and complete them – you will be forever grateful that you did.  

3: Why Build a Real Estate Team?

Real Estate Teams have become a strong force in the industry, and from the outside, they look like an easy way to increase your bottom line.  They certainly can do that, however, building a team isn’t for everyone.  Before you even consider whether it is right for you, ponder these potential benefits and possible pitfalls:

Potential Benefits:

  • Increase revenue and overall profitability
  • Free up your time by delegating tasks and specializing
  • Convert more buyer leads into closed transactions
  • Higher rankings and market share
  • Enhance your professional credibility
  • Exposure and reach of your brand
  • Build a more valuable asset and eventual exit strategy
  • Expansion of satellite offices in other markets

Possible Pitfalls:  

Experiencing frustration and stress if you build a team before you are ready

  • Are you a Manager? Trainer? Mentor?  If not, you may want to consider hiring one to support the growth of your team members!
  • People drama & turnover is inevitable for any small business
  • Finding the right fit for the key positions on your team and with you will ultimately alleviate the frustrations and pitfalls

4: Are You Ready for a Team?

If it hasn’t become clear by this point, we are resolute in the idea that you need to understand what building a team is all about before you take the plunge.  Doing so will save you time and money.  It will also allow you to grow your team more swiftly because you will have clarity of the process.  Here are a few other things to consider.  

Is your own house in order? 

  • Do you have your core real estate systems in place?  
  • Is your brand & value proposition clear for both clients and your agents? (Think WIIFM: What’s In It For Me?)
  • Do you have adequate financial resources to pay for employee(s) or to purchase or upgrade software, hardware or equipment if needed?
  • Are you clear about the structure and organization of your desired team? 

5:  Your Team Goals & Outcomes

Once you decide that you are ready to build a team, you’ll have another set of issues to consider and decide upon.  We always recommend beginning with the end in mind.  Once you know where you want to go, you can back into it and create your short and long-term goals.  You may be surprised and identify that you can far exceed that end goal.

What are your desired outcomes for building a team including your production, commission and net income goals?

  • What type of team do you want to build?
  • Rainmaker – are you going to sell/focus on listings?
  • Leads Team with an Inside Sales Agent?
  • Do you want to manage the team or hire a team manager?
  • How many admins?
  • Transaction coordinator
  • Marketing manager
  • Listing coordinator
  • How many Team Associates?
  • Buyer agents only or agents who work with buyers and sellers
  • Do you have a Specialty / Niche Market?
  • Are you interested in geographic coverage for your market area?
  • What are your one-year primary goals?
  • Where do you see yourself in 3 years? 5 Years?
  • What is your optimal target date for exiting the business?

6: Take the Self-Assessment – Where are you now?

Now, it’s go time!   Visit RealEstateTeamBuilder.com to access our free Real Estate Business System Assessment.

  • Complete the Real Estate Business System Assessment 
  • Identify areas that need refinement
  • Create a list and prioritize your action items
  • Schedule time weekly to work on specific tasks
  • You must have your house in order first before you even consider building a team!

In summary, Successful Team Builders think and act like a business owner.  Begin with the end in mind when goal setting.  And assess where you are now so that you can build it right the first time.  With the right foundation, you can build, thrive, and retire!