Image Commercially Licensed from: DepositPhotos
One of the great things about starting a career in real estate is that if you do things properly, your success will begin to generate its own momentum. One satisfied customer becomes two, five, 20, and beyond through passion and word-of-mouth. What started as a small, humble business will quickly grow into a veritable force to be reckoned with. Or at least, that’s how it’s supposed to go.
The truth is that expanding real estate ventures isn’t necessarily something that will happen automatically – at least, not from a certain perspective. Yes, word-of-mouth and exceptional services will allow you to grow. But if you want to truly scale and start competing in a different class of professionals, you need to go deeper than that.
Scaling strategies require you to think practically, depending on what type of business you’re currently running, what type you see yourself running in five years, and how to most effectively connect those two points.
Creating More Efficient Operations Through Modern Technology
The number one way to scale a real estate business – or any business, for that matter – is to find a better way to utilize the resources you already have. In this case, that means leveraging technology to improve the efficiency of your operations wherever and whenever you can.
Case in point: marketing automation. In a wholesale real estate situation, you’ll spend much of your time simply reaching out to buyers and sellers, trying to make those initial connections. If you could automate a big part of this process, you could save a tremendous amount of time.
You may even achieve better results than you could if you were still trying to do everything manually. You can segment your lists into smaller, niche groups and craft unique messaging for each.
Any chance you have to improve efficiency is important, as you’re not just saving money or time for the sake of it. You’re freeing up these valuable (and finite) resources for use in other areas of your organization where they can do the most good.
The Power of Networking and Partnerships
Next, you’ll want to foster as many networking and partnership opportunities as possible. Sure, this is beneficial in the short term, but you’re playing the long game.
To return to the example of wholesale real estate, you never want to look at any buyer or seller as just a “one-off client.” Based on the ease at which they could work with you and the beneficial outcome you helped secure, you want them to be enthusiastic about doing it again. Or if they don’t need you again in the future, they might know someone who does. That recommendation would come in handy to help you build your network.
Likewise, you should attend local industry events in your area to meet like-minded people with many of the same goals as you. Truly, you never know who you might be able to help – or who can help you in return.
Scalable Systems Beget Sustainable Growth
Throughout this time, you’ll also need to maintain an essential point-of-view that it’s not just about any growth but the right growth at the right time.
Everyone wants to operate the biggest and most successful real estate operation possible. But this is one of those scenarios where the phrase “slow and steady wins the race” applies.
According to one recent study, growing too quickly can often be as bad as not growing at all. You need to implement scalable systems that generate sustainable long-term growth. It’s not a sprint, it’s a marathon.
Additional Considerations About Scaling Your Real Estate Business
Cultivating a strong brand identity is another excellent way to help scale your real estate business in that it can act as your key competitive advantage. It helps to instantly separate you from every other real estate business out there in the minds of your prospects. People don’t just like what you do – they like you personally. That can often make a huge difference if someone is deciding between a few different people to go with for their next transaction. But you can’t get to that point unless you cultivate a strong identity along the way.
As you scale, you’ll also want to ensure you’re investing in talent and resources strategically. Every investment you make in your business should be purpose-driven. It’s worth reiterating that you’re not trying to achieve growth for the sake of it. If you hire a new employee, it should be because that person enables you to do something important that you cannot do right now. It shouldn’t be because you want to say you employ 10 people instead of nine.
Finally, always diversify your property portfolios as much as possible and practice other prudent financial management best practices. Any seasoned real estate veteran will tell you that investing in just one type of property is never a good idea. Don’t go “all-in” on single-family homes. Mix in some commercial real estate as well. The more diverse your portfolio is, the more you’re protected against any one single point of failure. Even if one part of the market unexpectedly takes a hit, your overall portfolio value will be less impacted because other strong investments will prop it up.
Beyond that, one must acknowledge that every real estate business differs slightly from the next. The market varies wildly, your prospects will always be in flux, and even your specific goals may evolve. That is to say, there’s no “one size fits all” approach to properly scaling your business. It will likely be a blend of innovative techniques like those outlined above that will allow you to begin your journey toward a bigger and better business in the most efficient way possible.
Likewise, don’t be afraid to experiment. If you try one strategy and it doesn’t play out the way you thought, keep the elements that are working and move on to something else. Eventually, you’ll be able to elevate and expand your business effectively in a way that doesn’t just allow you to meet the demands of today but also better prepares you to tackle the challenges the industry may face five or even ten years from now.
Published by: Nelly Chavez