I started my company in 2005 as a solo guy in a spare bedroom. Seven years later I am humbled that the firm has grown to 34 licensees and induction into the most prestigious consortium of independently owned companies in my market area. It has been hard, rewarding and sometimes frustrating work, but looking back I would change very little. I have been asked upon occasion about my thoughts on starting one's own company by more than a few people considering making the leap. I'll share some things I think anyone considering starting their own brokerage should know.
- You will be passed over in favor of big box brands. Some people think name recognition or a large chain is what will sell their house or make their deal. And some of them will change their minds on the 12th of never. Don't be a crusader. Not having to split your commission with a broker will more than make up for what you lose by not being a big box brand.
- You will be let down. You know all those people who say they'd work for you if you ever started your own brokerage? Don't hold your breath. It is nothing personal; most people simply do not have the appetite for risk that an independent broker has when they start their own shop. Some will wait and see, and some might even join you after a while. But don't count on leading a cavalry charge of followers into your own enterprise in the beginning.
- You will be pushed around a little (and maybe even bullied). I wish I had a nickel for every agent or receptionist on the phone the first few years who asked "Who are you? Where are you? How come I've never heard of you?" If you are relatively well known in your area as an agent this might not be overdone, but don't be surprised if other companies and agents throw their weight around. You may hear rumors. You may even see emails or hear voicemails that are less than kind. Your clients will typically stick with you, but they won't fight your battles, even if they share your distaste for the meanies. They want their deal to close, not crusade for your honor.
- Be prepared to pay more. MLS fees, insurance, rent if you are brick and mortar, and a thousand other things cost more for a broker than an agent under the umbrella (and in the cocoon) of a big firm. Watch your overhead like your baby crossing the street.
- Don't be mislead by hot or cold periods. Just because you have a few good months doesn't mean you are on a gravy train of prosperity. And just because you hit a dry spell doesn't mean you stink. Think big picture. Save your money and only take calculated risks when things go well, and don't make drastic measures when you have a slow month or two. Never make a decision when you are giddy or depressed, ever. The vagaries of this business will play tricks in your head. Again, BIG PICTURE.
- Go. With. Your. Gut. I started my own firm to be captain of my own ship. I had 17 years of being a piece of someone else's apparatus and building someone else's dream. I was asked to do things I knew were ill advised but I wasn't the boss, and I was stuck. If you have the initiative to start your own enterprise, then you better listen to that inner voice. Think you should fire that client? You probably should. Is that vendor's offer too good to be true? Um, YES. Is that idea you wrote down at 3am a good one? Play it out. Your inner voice is what started your firm. LISTEN.
- You will come face to face with things you are terrible at. You may be a great performer but disorganized. You may stink at bookkeeping. You may not be able to let go of being a control freak. You may be too much of a perfectionist. You may have a tough time saying no. You may not be a morning person. Shortcomings are magnified for an entrepreneur. Get better or get help.
- You will have periods of loneliness. It is damn lonely in the captain's chair. It is like being the parent of another kid. Everyone just expects you to be an automaton and perform. Very few people will relate to what you are going through, and the ones that do probably won't be into talking at 1am when you can't sleep. Your idea didn't pan out. You screwed something up. You are alone with your thoughts. It. Is. Normal.
Bonus:
You won't grow until you trust, delegate, systematize and empower. If you don't want to grow past a certain point, keep the scope of your efforts manageable. If you do want to grow, you cannot grow alone. You need other people. That involves trust, training, patience, instilling confidence, and letting go of the need to control every little thing.
Do I want to scare anyone? Nope. I won't either, because if you have a dream, it is bigger than some blog list.
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