A Lack of Real Estate Education Can Quickly Put Your Brokerage Out of Business

We see it all the time. Ambitious agents begin their own brokerages, which – based on the past performance of the agent – should be successful. However, they soon run into trouble and eventually are out of business. Why?

A lack of real estate education. We don’t mean the professional requirements for agents – such as licensing, classes, etc. To run a business properly requires an entirely different education and mindset, and the truth is these things can make or break your brokerage.

Considering starting your own brokerage? Ask yourself the following:

• Do I know how to find, hire, and measure the performance of agents?
• What are the most important goals and objectives of my business? Do I understand how to track them?
• What technology do I need to implement? How will I manage marketing, accounting, payments, etc?
• How will I make decisions about what’s working and what’s not?
• What does a P & L mean to me and what do I know about cash flow?

Successful brokerages have three important things in common.

1. Leadership with a data-driven mindset.
2. Clear goals and an understanding of how to measure them.
3. The right technology stack to support growth.

Without the proper business background and education, it’s going to be tough for your brokerage to succeed, no matter how many deals you completed as an agent. In cases where you don’t know what you don’t know, the right tools will help make your business more effective right away.

Brokermint is a full-service solution that provides comprehensive reporting, helps automate processes and systems, supplies analytics for data-driven decision making, and enables support for complicated accounting tasks. Learn more about how Brokermint can take you from successful agent to outstanding brokerage.