When setting up a real estate company, it is of utmost importance to understand the common mistakes that can prevent you from realizing your full potentials. Mistakes are inevitable in life because we learn daily from our mistakes. A wise man once said, “Take chances, make mistakes. That’s how you grow”. Starting a new business, regardless of the industry, requires intuitiveness, comprehensive research of the market, a substantial number of resources and above all the ability to take risks. And when you take risks, you are bound to make mistakes. A smart entrepreneur is one who understands the difference between calculated and reckless risks. Running a business is not an easy feat, and while mistakes can make you proficient, some mistakes are easily avoidable and can help your business survive the initial tumultuous years. Let’s begin below as we identify the unavoidable mistakes which are stated below.
1. NOT HAVING A DEFINED AND STRATEGIC BUSINESS PLAN
I will start by asking what a business plan is. A business plan is a guided plan, it shows how your business is going to work and look like. It is a laid down step on how you are going to achieve success. Establishing a business plan is the first step for budding entrepreneurs. It is a valuable tool that provides a clear business vision and checks the viability of your business model before you invest in it.
A perfect business strategy plan should include a detailed overview of your finances, budgeting, marketing strategy, business structure, and mission statement among other things. It should deliver a clear picture of where you stand, where you are going and what you can expect in the future.
Another purpose of a smart business plan is to acquire competent professional services of attorneys, accountants, consultants and investors with a viable document they can trust and is compelling enough to retain their services. Creating your real estate business plan will allow you to identify your short and long–term goals and outline how you plan to achieve them.
2. LACK OF PROPER FUNDING
A real estate company cost a lot of money. Like any entrepreneur, you need a funding source in place to build your business. You can apply for bank loans or forge an alliance with a silent partner to supplement your savings.
In considering a business loan or asking for help from family members, you must consider having at least six months of reserves in savings before making the leap to a full-time agent. Although it may be difficult at first, it becomes easier with time. Your business plan should outline a rough amount of funding necessary to take your business off the ground. After that, it is your responsibility to stick to your budget and refrain from over expenditure. Therefore, all financial aspects of running a business should be addressed before you take a career leap in the real estate industry in order to avoid liquidation in business.
3. NOT INVESTING ENOUGH IN MARKERTING
As a start-up company, it is important to market yourself more to expand your outreach. An excellent marketing strategy can help you gain ample exposure which is crucial to establish strong footholds in the real estate market and to secure important clients.
Consider the following statistics: In 2016, 89% of the Millennials, 87% of Generation X and 85% of the young Boomers purchased their houses through an agent. These figures allude to the fact that most home buyers employ the services of a real estate agent. Therefore, you need to market your business locally to these target demographics to propel your business’s scalability.
In addition to investing generously in your marketing endeavours, you should also consider the mediums of marketing. You may be inclined towards print media, but ads in the local newspapers or real estate magazines will not generate as much business for a small enterprise like yours as social media or referrals marketing. Promote your business dedicatedly on social channels such as Facebook and LinkedIn and promote word-of-mouth by providing exceptional services to your first crop of clients. You can also give incentives to your clients, who in return will refer you to their circle of acquaintance. You can also publish articles and attend networking events; take every chance you get to get your name out there and let contacts know you are open for business.
4. EXPECTING IMMEDIATE SUCCESS
When you are new in the industry first starting out, it’s understandable to be excited and ready to set the real estate world on fire by securing and selling listing after listing. Unfortunately, that isn’t how it works.
Be patient, find a mentor, make network at industry events. Read everything you can on the industry, both nationally and locally. If you work hard, learn, show off your skills and be patient, good things will happen. Good things don’t come easy, it often takes time. Though it’s likely that you are anxious to make name for yourself in real estate industry. You need to be reasonable in your expectations of how long it will take to launch your career. It could take months to make your first sale, and it can take you up to two years to begin building a comfortable living from your business. I advise building a trustworthy brand is a great key to success in business.
5. NOT HIRING A SUPPORTIVE TEAM
Behind every successful business is a unit of competent, talented employees. Conversely, if you fail to hire skilled and dedicated individuals, it could be the costliest mistake of your business career. An erroneous assembly of employees with flawed ethics can result in loss of revenue and slow business growth.
Therefore, conduct thorough research before finalizing your team. Vet your employees’ performance diligently and boost their morale by establishing a perfect reward system. The support team is not limited to human beings, we also have technological support, such as property management software, is also a great asset for a newly established business with many balls up in the air. It’s also good that your team find time build recreational activities and personal development. When it’s time to work, be committed to making that time valuable but as some point is also good for your team to enjoy life outside work. You can organise picnic or movies night for your team as a reward for their hard work.
In all, mistakes are inevitable but is wise to learn from other people mistakes and avoid them which will help you to save time, resources, and energy.
