Starting a real estate business ain’t for the faint of heart. What other industry requires you to cold call dozens of leads every day only to close approximately five deals in your first year (if you’re lucky)? By most estimates, 87% of real estate agents fail within the first five years.
But for those who have what it takes, starting your own real estate business can absolutely give you the seven-figure job of your dreams. Here’s a candid look at how to start a real estate business, plus our best advice for avoiding mistakes that hijack momentum as you grow. You know the old adage about failing to plan, right? The vast majority of real estate agents find it much easier to work in their business, as opposed to on it. For many new agents, real estate is their second, third, or even fourth career. You loved the idea of “being your own boss” while making more than you did at your last job. But freedom has a very different meaning for an employee versus a business owner.
Run The Real Estate Business Is A Good Thing
The question is, which are you? The first thing you need to know about starting a real estate business is that, yes, this is a business. 25 per hour at last check), you need to start thinking like a business owner and that means planning. Before you set the right financial goals for your business, you need clear financial goals for your life. Commissions are great but — let’s face it — we all came into this business wanting something bigger and better than what we have right now. Whether that’s the 187-foot yacht of your dreams or the ability to leave the office at 2:00 p.m. What time do you want to start work? What time do you want to finish? How do you want to feel each day? How much money do you want to make? Want to retire at 65? Pay your kids’ college in full? Figure out how much you need to put aside every month in order to make that happen. It’s so much easier to keep picking up that phone when you know exactly where your profits and commissions are going.
Now that you’ve put pen to paper to figure out exactly what your biggest, most anti-paycheck-to-paycheck life looks like, it’s time to talk business. Start writing your business plan, paying special attention to the things that set you apart from the other real estate businesses in your area. Give it some real thought. This is where your personal and business identities can really come together to make profit-driving magic. How does selling real estate make a meaningful difference for you, your prospects, and even the world? What are the values and principles that drive your real estate business? How are those different from the real estate business next door? What are the three to five things you are going to own completely in the business? Who will take care of the rest? Even if you’re just looking to take administrative work off your plate by hiring your first virtual assistant, it’s critical to create that big picture vision to keep your team inspired and avoid repeating unproductive patterns.