When Do You Grow and Expand a Real Estate Business

Loreena- If you have a real estate brokerage you need to treat it like a business. That means that you must have a business plan. If expansion in that plan includes expanding market share than you can not do it alone. The biggest problem with us entreperneurs is that we feel we can do it better ourselves and thus, have a difficult time delegating. But in order to increase profits and to live your life, you must delegate. You may want to start with an online VA at first, then add on a licensed admin. But we even got a buyers agent before we had our admin set up because we will not drive buyers around when we have to concentrate on getting listings for our own company. Because of this main one decision- we are in the top 2% of agents closing business in our mls. Katerina

Loreena- If you have a real estate brokerage you need to treat it like a business. That means that you must have a business plan. If expansion in that plan includes expanding market share than you can not do it alone. The biggest problem with us entreperneurs is that we feel we can do it better ourselves and thus, have a difficult time delegating. But in order to increase profits and to live your life, you must delegate. You may want to start with an online VA at first, then add on a licensed admin. But we even got a buyers agent before we had our admin set up because we will not drive buyers around when we have to concentrate on getting listings for our own company. Because of this main one decision- we are in the top 2% of agents closing business in our mls. Katerina

Loreena,

I am not in a position here to advise. as a new agent and not a broker..but it sounds to me like if you want to enjoy your life and your family, you need to have someone you could train to do things as you see fit....I would hand pick someone if I was in your position....I think working with friends might complicate things...

If you want to grow, or need to grow then you add team members. Have you read the Millionaire Real Estate Agent. In it Gary Keller outlines the steps to be taken, how to add team members and get to a place where you want to be.

I NEVER set out to grow a team, but as my business grew I needed help, I just could not do it all.

So I added a full time assistant first to handle all the activities that were important to get done, but didn't require a license. She was able to do the things that took time but didn't make me money.

Next I added a buyer agent and then more.

I really don't like management at all. But it frees me up to rainmake and do the things I love doing. It also affored me the ability to spend time with all 5 of my kids and not miss any of their activities.

My first assistant was a good fit and she was my assitant for 12 years, then she got licensed and wanted to just work with buyers.

It is a good idea to give them the test to make sure they are a good fit for what you need. Don't just trust your instincts. It is the test, sorry can't remember the name too tired. But, you can be a DISC.  Ok it is the DISC test.

I have them take it online, cost around 30.00 then it gives you the pdf of how they would fit with you. And what you can expect in work ethic, motivations, disappointments etc..

Get Gary's book and read it on adding staff to your team, I think it will clear it up.

Loreena, seems like you have come a long way in 5 years and are moving forward well!

Loreena, great post. I have been on the edge about starting my own...I think  at some point I will have to take the bullet to do that.  Thanks for sharing your experience  Nestor & Katerina Gasset !!

Hi Loreena - as an entrepreneur one thing I think you have to do is decide what you want and need first then what your business needs. While it may be important for a business to grow and expand, the question is really what do you and your family want? If you are comfortable with the size business you have and your family is happy with that then perhaps running a larger brokerage is not in your best interest. A bigger brokerage generally comes with bigger issues. If you want to grow then definitely plan and move forward. You have done such an outstanding job in growing your current business, there is no doubt you could take it to the next level. I recommend taking a moment and while envisioning your future business you envision the life changes you will also encounter.

Loreena- Great way to revisit past thoughts and feelings:) Scaling a business as an entrepreneur is the hardest part. That is because we tend to think we are the center and the only ones who can do it right. Entrepreneurs tend to suffer from "perfectionism". But as you develop your business and grow more outside of your own universe- you see that it actually blesses others when you scale and grow. It gives others opportunities that will bless their lives. 

For us, scaling and growing the business has taken on different routes and meanings over the years.  What we ended up deciding after trying many different models - is our priority is our son- baseball and homeschool and all of our other children and their children. We have a very large family. Lifestyle became more important than anything else other than our relationship with Heavenly Father.  What kind of lifestyle do we want to have - REALLY want to have? That had to be defined first. 

For us, that turned out to be hiring a few agents to work in our brokerage and for us to do fewer listings but higher priced listings. We would rather make the same amount of money selling 6 homes in a year than another agent who has to sell 500 units for the same amount of income. So volume became a thing of the past with us. Yes, that seems to define success to many agents- but who cares! This affords us the lifestyle of never missing a baseball game our son is pitching in. I can jump in the pool with the grandkids or head to the beach at the spur of the moment. 

I wish I had some great advise for you, but every situation is different, and real estate agents are fairly independent by nature, so sometimes it's difficult to find people who are professional as you would like them to be. Good luc

Good luck Loreena and congrats! :)

Yes, never say never...Congratulations on your expansion, and best wishes for continued growth!

Hello  LOREENA YEO,

you are moving forward I must say... keep it up and you will be on the top in no time...

Have a great day!!! enjoy what you have and everything will come at the right time... 

I too want to run a brokerage. I have to meet many more goals before I can do that. One day at a time.... One day at a time.

Good morning Loreena Yeo growth is important in order to remain a healthy business.....growth must be controlled.....with each addition, there must be a period of maintaining, just as there is in a healthy lifestyle of eating..... growing is a necessity unless it's done without thought and too quickly....

Hi Loreena,

Earlier this year I saw the benefit of growing my brokerage business with an addition of an assistant and a new agent.  Indeed two are better than one and a three fold cord is not easily broken.  Best of GREAT success to you and the 3:16 Team in 2014!