With thoughtful and smart decision-making, you can overcome your brokerage’s biggest hurdles, writes the agency’s Mauricio Umansky.
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Building a successful brokerage is no easy task. Many experienced real estate agents start new businesses on their own, only to find themselves in trouble.
When I set out to build the agency, I encountered huge challenges. It’s easy to underestimate the complexity of the task of starting a brokerage from scratch, and often, new CEOs struggle to turn a profit when faced with increasing administrative costs.
With the right team, the right vision and the right strategy, a brokerage can thrive. However, few businesses get to this point without going through some growing pains. Here are some of the biggest challenges a new brokerage may face and how to deal with them.
don’t know who you are
There must be a reason why you want to take the plunge and open a new brokerage. What niche do you hope to carve out? How are you different from other companies? What unique skills or knowledge do you have to offer?
Asking yourself these questions early in the process is key. Because if you don’t know who you are, your customers won’t either.
Brokers that haven’t established a clear brand image have a hard time making informed decisions. When you skip this step, everything from your marketing strategy to recruiting new talent feels more like a blind attempt than an intentional choice. Take the time to define your mission statement and core values, as this will impact every aspect of how you run your business.
Don’t know your audience
Just as important as knowing who you are is knowing who your customers are. This will help you customize your services and develop marketing strategies. It may be tempting to cast a wide net and try to cater to as many people as possible, but narrowing your customer base can give you a competitive advantage.
It’s crucial to do the necessary research to become an expert on the clients you want to attract.
Without a deep understanding of their target audience, new agencies will waste valuable resources on ineffective marketing materials. They may also struggle to provide the personal service that leads to customer retention and a healthy referral pipeline.
no suitable person
Once you know your full story and who your customers are, the next important step is to surround yourself with skilled agents who are a perfect fit with your company culture. Building a talented, energetic, and collaborative team takes time. That’s why it’s so important to focus on recruiting and training from the beginning.
When choosing who to hire, keep your brand image and audience in mind. Some brokerage firms make the mistake of hiring a large group of agents who, while they may be talented, don’t have the specific skills or expertise needed for the firm’s niche. Once you decide to hire someone, be prepared to provide them with the training they need to thrive.
Without strong recruiting efforts and proper training, you run the risk of high employee turnover, which can severely drain your company’s resources. It’s better to take your time choosing a new agent than to go through the process of onboarding and training someone only to find out they’re not a good fit.
spend money unwisely
Businesses take time to become profitable. You need to be prepared for a period when your expenses exceed your income to ensure the long-term success of your brokerage. However, there are some common budgeting mistakes you can avoid altogether.
When it comes to advertising, be realistic about what your agency can afford. Don’t try to copy the marketing efforts of larger companies with more resources. Focus on quality rather than quantity and don’t be afraid to think outside the box. Not only will you save money, but you’ll also set yourself apart from your competitors.
There’s also no need to spend tons of money on a huge, flashy office space that doesn’t make sense for day-to-day operations or team size. Yes, your office impresses clients, but that doesn’t mean it needs to be expensive. Don’t waste money on space or equipment that is rarely used.
The road to success is often filled with obstacles, but your brokerage can overcome any growing pains through thoughtful and smart decision-making.
Mauricio Umansky Founder and CEO the agency In Los Angeles.contact him Instagram.
