I know what you are thinking. Who in their right mind would start a new real estate firm in THIS terrible market? Well, ah, that would be me. Am I crazy? Maybe. But I am also excited, invigorated and happier than I have been in a long time. It's as if I have been released from a burden I didn't know existed. I am free. My new firm was official less than one week ago.
When I wrote a brief post about my new firm I got some amazing calls and comments of support from my ActiveRain friends. Some expressed interest in knowing exactly what goes in to creating a real estate firm. I found out by trial and error but I am happy to share what I learned. So, here is part 1 of a series on how to start a real estate firm according to Diane:)
This series will include:
- Why do you want to start your own company?
- Solo/Team or office?
- Mission, Vision, Goals and Objectives
- Foundation, Strengths, Specialty niches
- Choosing a name
- Your exit strategy: Have a plan!
- The Licensing Process
- Branding/Logo/Colors/Marketing materials
- Blog/Web Design/IDX
- Logistics and Timing of going live: Local Board/NAR/State/MLS/Online forms
- Updating logos and firm informaton online
- Public Relations: Chamber of Commerce, Local Home Builders Association,
- Press Releases/print and online
- Notify SOI, send new business cards
- Enjoy the fruits of your labor!
Why are you considering opening you own company?
To be completely honest with you, I didn't even think about starting my own real estate company until recently. For me it was the perfect storm of 18+ years of experience (Including 5 as Director of Business Development for a privately owned real estate company), a passion for branding and marketing, a realization that no firm here completely suited my ethics, standards and vision, and the fact that I had reached a point in my career where I honestly didn't feel I needed a firm for anything, not even leads. I already worked from home and had all my own systems and marketing.
So, I started asking my current and past clients if they would have used me and will they continue to use me if I am not with a big firm. The overwhelming response was yes. They hired me, not RE/MAX. One person did say that perhaps some sellers may feel they need that big-name sign in front of their property which I think is a valid point. But the reality is that we can compete on just about every level with the big guys thanks to the Internet, IDX, blogging and Web 2.0. The playing field has been leveled. We just need to make sure to be able to prove this to sellers in our marketing presentations.
The bottom line for me as to why I decided to start my own firm was:
- Financial: I did a budget and found I would be much better off on my own
- Personal: I really want to practice real estate my way and I was frustrated with the philosophical differences between myself and my brokers
- Excitement: A chance to be creative and innovative and have fun doing so!
- Timing: Our area has lost a lot of Realtors. This market is asking for quality, not quantity. The economy is changing and it is a great time to design a business model that will seize the opportunities rather than defend past practices.
Realtors who continue to do business as usual are being left behind. Web 2.0 has changed the way our industry does business to such an extent that for the first time, in my opinion, we don't need the clout and marketing of the giants. We can do it not even just as well, we can do it better on our own...or at least, that is what I believe!
Solo/Team or Office?
For me this was a no brainer. I have absolutely no desire to oversee other agents let alone have a physical office to manage. I have never been on a team nor have any desire to be on one as I would rather do fewer transactions and maintain the personal contact with all of my clients. That is what I enjoy about real estate. If, however, you want to build a "Triiibe" as Seth Godin has, then I would encourage you to do that as well.
Part 2 coming soon!
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