The path to building a truly successful real estate practice is to "run your business like a business". But what does that mean?
Most of us don't spontaneously know how to run a business. We have to learn.
But it's not necessarily easy. Most businesses fail, or so we've heard. I'd submit that the reason so many Realtors ignore the business end of things is either because of ignorance or fear. On some level, we're all afraid of failure. It's just the way it is. But getting educated about business and addressing the issue head on is the only way to be successful. It doesn't happen on accident. You stay in this business on purpose. You know what they say about people who fail to plan...they plan to fail. And whether you've addressed this or not...and whether you agree with me or not, if you're in real estate, you are in business. Look at a few facts with me and tell me what you think.
Why Will Your Businesses Fail?
Every operation has weak points. What are yours? Don't want to think about it? Well, your competition doesn't have any problem thinking about it and telling the world. Be introspective sometimes. It gets said over and over again that most businesses fail in the first couple years. It's no different in real estate. What doesn't get said as often is that there's always a specific reason it happens. A book I highly recommend that talks about this is E-Myth. It shows you why, specifically, businesses fail and how you can take steps to dodge the bullet.
Another thing that doesn't get said as often is that most businesses with a proper, written plan, a well thought-out idea and that are executed by an experienced entrepreneur succeed. That's right! Success is predictable and duplicable. It's not guaranteed of course, but you can most certainly take very specific steps to ensure your odds of success in business are greatly enhanced. I felt like writing this for the simple reason that so many of the Realtors I talk to just don't have a written business plan. It's NOT a good idea.
Why Will Your Businesses Succeed?
This is an equally important, more fun question. Wouldn't you agree? What are you good at? One commonality of most successful businesses is that they create unique, definable value for their customers. Do you do this? Or are you just driving buyers around, hoping they write an offer soon? Have you thought about it? What do you do better than anyone else? Think about it and write it down. Put it in your business plan...accentuate your skills and make sure your market share knows about it. Take classes to improve this skill even more. Be the best at something.
Run Your Business Like a Business
Budget. Lead with revenue. Invest in your business. Too many of us in this great business are still living paycheck to paycheck. It doesn't have to be like this!
Get Educated
As Realtors, we're all familiar with the dreaded, state-mandated CE classes we "have" to take every couple of years. Here's a great idea: quadruple it. This is what I do. Instead of 1 monotonous bore-fest every couple years, I go to two conferences each year. I pick what I want to study. I earn designations. I meet fantastic top achievers. I've made some great friends this way. I make a lot of money and get referrals this way, not just real estate referrals either. This is how I met my CPA. It's how I met a guy I am potentially partnering with on a large apartment building investment. And a funny thing happens, I never have to pay attention to whether I have met my CE requirements or not. I'm too busy having fun and networking. It's another funny thing: when you do four times the CE, you know four times as much as virtually anyone else in your market. Do you think this creates an advantage? Just a thought.
Mario Trejo Romero
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