IF YOU ADD A TEAM MAKE SURE THAT YOU HAVE A GROWTH PLAN

By
Education & Training with Performance Development Strategies

 

What would you like to happen in your business in 2019? Do you want to add people to your real estate business?  You would like to be a success story by the possibility exists that you may just dilute the same amount of business your had before you added people.  One of the biggest challenges is not starting as a solo agent but growing the business and adding people.

Michael Gerber, in his book “The E Myth Revisited”, discusses the reasons this is true. The e-myth or the entrepreneurial myth as described by Gerber incorrectly assumes that the desire of the new business owner or entrepreneur, plus capital, plus a profit goal will result in success. But this has not spelled success for business and the lack of true understanding of what it takes has caused businesses to fail. Some businesses may survive due to external dynamics and timing, but they will become stagnant and the owner will feel like a hamster on a wheel. This is because there is a lack of entrepreneurial leadership.

Let’s take an example. How many restaurants open and close shortly after? A great cook or chef feels that because he or she understands how to create a great meal he or she would run a great restaurant. Soon after opening, the owner is usually consumed with running the business and involved in every little detail. There is very little time to step away from the day to day operation. In most cases the business stops when the owner stops. In our restaurant example, unless you have a food stand, you need other people. You need organization and you need leadership. If you are a great cook and this is your passion you might be better served to work for great restaurant as the executive chef.

Likewise, if you want to build a real estate agency you will need to provide leadership and development to your team. You cannot expect new agents to hang their shingles with you and say you have an organization.

More needs to be done. Michael Gerber highlights some key points in his book. I have found that the enterprises that I have coached and consulted have had success when they have followed the following points.

1.        You need a vision for your business. How do you look when you are successful? What is the future of your business five to ten years from now rather than what you are doing today?

2.        Who are you customers now and in the future? What is your unique value proposition; what sets you apart from your competition? How do you get customers?

3.        How does the business work rather than the work done by the business? It was easy as a single agent to get it done.  But that won't do it now.  What processes and procedures are in place to facilitate the smooth operation of the business when the owner is not present?

4.        How does this business generate profits rather than how does the business make sales?

5.        How is the business structured to meet the needs of the customers? How does the business build loyal customers?

6.        How are the best people hired, motivated, and retained?

7.        Can this business continue to grow and duplicate? In other words, is this a sustainable business?

 

Managing a Restaurant

The real secret behind all of this is not simply having a business plan although you certainly do need a business plan. The real secret is learning how to become an entrepreneurial leader. Leadership is paramount to you personally and to your team. As an entrepreneurial leader you will look at the forest instead of the trees, you will work ON your business rather than IN your business, and you will become the inspiration for your business.  For a similar post on our web site see ACHIEVE ENTREPREURIAL LEADERSHIP IN 2019.

Are you ready to become a successful entrepreneurial leader in 2019?

Or

Good news! If you are a Westchester Business and looking to add people, you may qualify for a special program for entrepreneurs. Find out how.

Contact us at 914-953-4458 or inquire here.

 

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Re-Blogged 2 times:

Re-Blogged By Re-Blogged At
  1. Roy Kelley 03/08/2019 01:00 AM
  2. Gabe Sanders 01/17/2019 10:00 PM
Topic:
Real Estate Best Practices
Location:
New York Westchester County
Groups:
Coaching and Mentoring
Tags:
working on your business not in your business
entrepreneurial leadership in westchester ny
entrepreneurial growth in westchester ny
adding more people to your sales team

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Rainmaker
2,274,344
Brian England
Arizona Focus Realty - Gilbert, AZ
MBA, GRI, REALTOR® Real Estate in East Valley AZ

This is very sound advice and growing businesses would be wise to take heed.  So many businesses grow too big before they are ready to handle all of the business coming their way and the service lacks, so the business ends up failing.

Jan 07, 2019 05:53 AM #7
Rainmaker
1,727,293
Grant Schneider
Performance Development Strategies - Armonk, NY
Your Coach Helping You Create Successful Outcomes

Maria - first steps are managing yourself.  You can grow later.

Barbara - but not only hire well.  You need a plan to work with them to grow.

Nina -  yes, this is true.  A foundation is started with one.

Gita - glad you agree.  It is the way to start.

Dorie - thanks very much.  I have found they have helped solos too.

Wayne - oh yes, people will not stay if there is not a plan for mutual growth.

Jan 07, 2019 05:53 AM #8
Rainmaker
1,727,293
Grant Schneider
Performance Development Strategies - Armonk, NY
Your Coach Helping You Create Successful Outcomes

Brian - that is correct.  They just thow it against the wall and expect it to stick.

Jan 07, 2019 06:18 AM #9
Rainmaker
3,884,921
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Grant, we see it all the time, an agent wants to be a team, and starts hiring whoever they find.   Then, they wonder why it isn't working.  Great tips! 

Jan 07, 2019 06:20 AM #10
Rainmaker
4,696,063
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

Good morning Grant.  I see lots of teams forming in my area.  And, many of them don't last for long.  It takes some good planning to make them work.

Jan 07, 2019 06:23 AM #11
Rainmaker
1,727,293
Grant Schneider
Performance Development Strategies - Armonk, NY
Your Coach Helping You Create Successful Outcomes

Joan - yes, it takes more than that.

Gabe - yes, I see that all over.  I takes more than just more people!

Jan 07, 2019 06:27 AM #12
Rainmaker
1,449,372
Amanda S. Davidson
Amanda Davidson Real Estate Group - Alexandria, VA
Alexandria Virginia Homes For Sale

Grant, I hope this gets featured. Forming a big team isn't always best. I took the route over the last two years of having a small team with just a few agents and an assistant. Last year I opted to keep my assistant and one full-time agent. We produced the same amount as when I had 4 and all of us were much happier. Bigger isn't always better. Having the right people in place is really what makes a business thrive.

Jan 07, 2019 06:34 AM #13
Rainmaker
1,727,293
Grant Schneider
Performance Development Strategies - Armonk, NY
Your Coach Helping You Create Successful Outcomes

Amanda - thanks for weighing in to validate this.  Yes, bigger is not always better.

Jan 07, 2019 06:36 AM #14
Rainmaker
2,894,689
Will Hamm
Hamm Homes - Aurora, CO
"Where There's a Will, There's a Way!"

Hello Grant,  It all comes down to hiring the right people and the training you give them.  Their are pro and cons with teams.  Can I reblog this down the road.

 

Jan 07, 2019 10:28 AM #15
Ambassador
3,645,031
George Souto
George Souto NMLS #65149 FHA, CHFA, VA Mortgages - Middletown, CT
Your Connecticut Mortgage Expert

Grant it is pretty hard to find their sense of direction, if they can't answer those questions

Jan 07, 2019 04:25 PM #16
Rainmaker
1,727,293
Grant Schneider
Performance Development Strategies - Armonk, NY
Your Coach Helping You Create Successful Outcomes

Will - yes, unless you are ready to do that training and support don't expand.

George - and some really can't.

Jan 08, 2019 06:48 AM #17
Rainmaker
5,021,934
Roy Kelley
Realty Group Referrals - Gaithersburg, MD

Thank you very much, Grant, for sharing your experience and your advice.

I will schedule a March reblog.

Jan 08, 2019 06:59 AM #18
Rainmaker
1,727,293
Grant Schneider
Performance Development Strategies - Armonk, NY
Your Coach Helping You Create Successful Outcomes

Roy - thank you for your support.

Jan 08, 2019 07:39 AM #19
Rainmaker
1,179,590
Carol Williams
U.S.: I specialize in helping agents who have been in the business 2 years or less create a thriving business. - Wenatchee, WA
"Customized Mentoring & Marketing Services"

Hi Grant,
You always share such great info.  Thanks!

Jan 08, 2019 11:42 AM #20
Rainmaker
3,884,921
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Grant, for those looking to grow a team, they should be reading your posts weekly! 

Jan 10, 2019 06:27 AM #21
Rainmaker
9,620
Mary Grace (Ballew) MacDougall
Keller Williams Columbia - Columbia, SC
Home Buying and Selling in the Columbia Area

#6 is very important. If you do not know what motivates your staff or their motivation is extremely different than yours, you could be in for some rough water!

Jan 11, 2019 07:59 AM #22
Rainmaker
2,682,597
Laura Cerrano
Feng Shui Manhattan Long Island - Locust Valley, NY
Certified Feng Shui Expert, Speaker & Researcher

Growth plans are always good to have in the long run. General growth Is really worth it as well!

Jan 14, 2019 11:54 PM #23
Rainmaker
3,016,086
Sally K. & David L. Hanson
EXP Realty 414-525-0563 - Brookfield, WI
WI Realtors - Luxury - Divorce

Knowing the very valuable contribution of each team member and monitoring their perfomance are successful teamwork keys.

Jan 18, 2019 02:31 AM #24
Ambassador
1,708,664
Debb Janes EcoBroker and Bernie Stea JD
ViewHomes of Clark County - Nature As Neighbors - Camas, WA
REALTORS® in Clark County, WA

This post would have been valuable for our former Principal Broker - he hired four new agents without any plan. One of the new guys even asked to see the business plan for the brokerage...he didn't have one. It was sad. Needless to say, he also promised projects ( new construction) and listings - that never happened either. We all left and he is now doing something else. Good thing too. D 

Jan 19, 2019 08:06 AM #25
Rainmaker
1,727,293
Grant Schneider
Performance Development Strategies - Armonk, NY
Your Coach Helping You Create Successful Outcomes

Carol - Thanks I do appreciate that.

Joan - I love helping team builders and broker owners.

Mary Grace - absolutely correct.  Thank you.

Laura - growth must happen because the economy grows and people expect growth in their paychecks.

Sally and David - that is right and that is delegating with confidence.

Debb and Bernie - there you go.  That is a perfect example.

Jan 20, 2019 05:47 AM #26
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