By Jim Droz
You have got to be kidding me! Did I seriously read that correctly? Many real estate agents would be and should be offended by this statement. However, having said this, I completely agree with the statement. Why you ask? Because when a person decides to have a career in real estate, he or she does not have a job, but instead he or she opened a business. Real estate agents are not employees of any company; they are business owners. So it is to be said that any real estate agent needs to think like a business owner and not an employee.
If you look up the definition of “employee” Webster defines it as, “a person employed by another for wages or salary.” Employees are given hours that they must work in order to get their wages. They (employees) are responsible for completing tasks that are given to them by others. They (employees) have very limited control over how successful they will be as well as limited control over what their responsibilities are. This basically boils down to – employees cannot prosper alone. Instead their success lies in the hand of others. People who are employees and not business owners (real estate agents) are given a false sense of security because they receive a weekly paycheck. What a lot of employees don’t consider is the simple fact that someone else will benefit from their work.
The economy today is horrible and that is no secret. I have listened while numerous real estate agents contemplated obtaining a “real job” instead of being a business owner. These agents want to close their business in order to secure a “guaranteed” income. If you are one of those people, please take the time to read this article again from the beginning. It’s important that you realize that you would be closing YOUR business. Instead, you need to start thinking differently – it’s time to start thinking as a business owner. It’s time to change the way you think and make the change you want!
What are the “Top Ten” responsibilities of a business owner? They are, but in no specific order:
1. You need to generate a consumer need and/or for the product you are selling.
2. You need to convert your leads into money – make a profit.
3. You need to provide an excellent level of service and make sure you have outstanding customer satisfaction.
4. You must create YOUR brand recognition.
5. You need to build residual income, by keeping your clients satisfied.
6. You need to protect your business’s image and reputation.
7. You need to focus on making a profit.
9. You need to build security in your business, preferably by purchasing as much real estate as possible.
10. You need to learn how to balance your business and life responsibilities.
As you may have noticed, we did not get into detail about each of the “Top Ten” responsibilities but don’t worry, we will be doing that in the future. Having said this, it is important to at least touch on one point; how and where you should reinvest your profits back into your business to increase growth.
When I first became a real estate agent, I saw the interest rates significantly increase to around 17%. I also noticed that home purchases immediately stopped. As you can image, this freaked me out especially since I was a new agent. I watched agent after agent leave the business. I watched the housing market inventory massively grow. I also watched homes sit on the market for what seemed like forever. I was in a state of panic and asked my personal broker, “I need help. What can I do?” I was floored when he said he was going to be put a greater percentage of his income back into his business, especially while all the other agents were closing their doors. He also went on to say this was a great opportunity to actually increase his market share. I took what he said to heart and followed his advice. Within a year of implementing what he told me, I was the #1 real estate agent in the world.
Even though the economy is struggling, now is not the time to stop spending on your business. One thing you need to make sure of is that your money is spent in a place that generates leads for you, especially since that is how you will make a profit. Sometimes the truth is we don’t always have the money we want to put back into our business and if this is the case then you need to pay attention to where you spend your time. Yes, your time!
It’s time to start concentrating on the “Top Ten” list in this article. Time spent on accomplishing something productive is never a waste of time; in fact, it will generate income, which will give you the finances you need to invest back into your business.
(Watch for our future articles where we will go into detail about the percentage you need to reinvest when it comes to our “Top Ten” list among other specifics.)