PLANNING TO BE PROFITABLE NOW AND IN THE NEXT PHASE
is spoken of the apparent coming changes to the real estate
environment with regard to proposed regulatory changes.
Justification for this is given by various politicians,
and those excluded from participation by law, on the basis
that it will lead to a needed reduction in fees. It wont
happen some of you are still saying. Solicitors wont
have an impact you say. If its not them, it will someone
else and right now it could be one of you current competition
who are making changes to how they operate. Changes that
will see them take a position to avoid the coming risks
that lower fees would bring. There is no doubt that some
agencies and their salespeople will suffer the reality of
lower fees when the time comes. Imagine it being like last
year again. How many of your salespeople would stay if that
was a permanent income level.
But it need not be the case.
Not if you adopt a position of absolute QUALITY.
Over recent years weve been bombarded with information
on Systems, Technology, the Internet, legislative issues
and salespersons training. Enough to keep us busy but not
necessarily focussed on the key issues of Quality Production
through sales revenue.
Now is the time for business owners and managers to take
a position of leadership and set new standards of performance
and endeavour based on quality. Some operators have already
taken that stance and placed new standards as minimum criteria
to be part of their teams. Their growing presence in the
market place is abundant evidence that new standards are
at work now. These are the operators whose fees will be
sustainable and perhaps could even increase in time.
WHERE DO YOU START?
One would hope that you have a clear vision of where your
business will take you and what it will look like, be described
as, and be like to work in when you achieve your goals.
I call this the fuel to fill your tank each day with the
energy, drive and enthusiasm to build and lead a great team.
So have you a Business Plan the specifies the key strategies
that will take you to that success picture.?
Have you really got a handle on current reality for your
business and do you understand why that is so. I suggest
we have a look at your real levels of productivity in your
How many controlled listings do you list per person per
How many auctions do you list per person per month?
How many of them sell?
Whats it costing you to hold this stock. I disagree
with those pundits who say one of the beauties of real estate
is theres no stock to carry. If you are a traditional
full service operator, funding the advertising youve
got stock costs all right.
How much per listing do you spend?
How much per sale do you spend?
What are your conversion rates of these listings into sales?
Why is there a gap between where you want to be and current
What are the specific strategies that will make the biggest
Can I do that? Do I want to do that? Do I need help to obtain
the extra skills and resources? Do I need people with different
skills and attitudes?
If the answer is yes then its time to be a leader and set
new standards. Its time to do the things that leaders do.
Set clear and obtainable goals, have clear and enforced
standards, and let your team see you enforcing them! Manage
your people, train, coach and counsel your people-lead them
to new levels of productivity. Remember those that dont
want to change, wont ever, so take a stand.
Just briefly Id like to outline some of the key areas
that need to be covered.
Have I enough/too many people?
Have I the right people?
What new skills do they need?
Hows my recruitment plan? Where will I find the new
What Induction and training do they need?
How is my training programme?
SALES AND MARKETING
Where are my clients and how to I keep in touch with them?
How is my Auction programme
Vendor marketing contributions
How do we use our database?
Branding and its use
Customer relations and surveys?
Listings taken, held and sold?
Do we have the right technology and support to achieve new
levels of Quality?
Are we in the right premises?
Do we need more branches?
The physical environment?
Of course theres more to it than this. Like how do
you get buy in from your existing team to setting new standards
and creating accountability so that this isnt just
a good idea but ultimately becomes the way we do it
The most motivating point is this.
No matter how much we might resist such thoughts or believe
we are on track already, if it isnt yet a reality
in your mind or business, a version of it is somewhere else
already and one of your competitors is making it their reality
and a competitive advantage.
Where will that leave you in our changing marketplace? As
I said earlier there are operators who have already embarked
on strategic plans to lift their game, to have all their
team telling the same story, to take a place of preference
in the consumers mind at the exclusion of their competitors.
Those operators who take up the challenges of active and
energetic leadership, coupled with a strong self-discipline
to do the hard yards are/and will prosper no matter who
else jumps on the real estate scene.