A Great Agent Won’t Always Make a Great Brokerage. How to run a successful brokerage business?
A business background matters more than you think.
It’s a common path for many successful agents. Take classes, fulfill the required professional criteria, and find a great brokerage to work for. Complete several transactions, make a name for yourself, and achieve an impressive CV and a nice income. From there, you might begin to think: “Why am I making so much money for someone else? Shouldn’t I just go into business for myself?” Many agents who are successful in real estate transactions decide to become a brokerage on their own. They essentially decide to go into business for themselves.
And then, many of those enterprising agents fail.
It’s a pattern we see over and over again. Why? Because doing well at what makes a great agent is not enough to create a successful business. While many beginner brokerages start by adding more ambitious agents, there’s a lot more to sustaining a business over time. Here’s where many people who begin brokerages run into trouble.
You might be tremendous at buying or selling houses. Do you understand how to find, acquire, and retain other agents? How about the ways to inspire them to reach their potential? Do you understand how to structure your business overall, including departments like accounting? Has anyone taught you about analytics and how to pull the right KPIs to measure performance? What about managing cash flow? Where do you find leads and how do you nurture them? If you start experiencing growth, do you know how to scale while maintaining what keeps your company profitable?
These are just a few of the questions you need to ask yourself if you’re considering transitioning from an independent agent into a real business owner. The mindset of a fantastic agent just isn’t the same as a business owner and operator. In order to see your brokerage succeed, you need to shift your entire mindset into that of a business owner.
What does it take to create a successful brokerage business?
Too much thinking like an agent – even an incredibly high achieving one – will put you out of business as a brokerage. To manage a business that you plan to eventually grow and scale requires a change in thought processes. There are a few elements we’ve seen in successful brokerages founded by agents.
- A data-driven mindset. You need to become familiar with numbers and use them to streamline your strategy.
- Clear goals and KPIs to tell you if you’re meeting them. It’s hard to create a path to success if you don’t know where you’re going. Establish goals and objectives and then determine measurable results.
- The right technology stack. Growth cannot be supported without the right tools in place. In order to pull the necessary data and measure the right results, you need back-office solutions that are intuitive, easy to use, and robust in their reporting.
The best platform is going to be crucial in helping enterprising individuals to create and scale a brokerage business. A full-service solution will provide comprehensive reporting, help automate processes and systems, supply analytics for data-driven decision making, and enable support for complicated accounting tasks. Take a look at some of the ways Brokermint supports new brokerages:
- Recruiting and onboarding help – From agent onboarding to goal management, improve productivity and reduce compliance risk. Bottom line: agents want to work for brokerages that help them to earn more money. Any systems you can put in place to help agents be more effective will ultimately do just that.
- Integrate with key systems you already use – From accounting software like Quickbooks to integration with your favorite real estate solutions and your local MLS, Brokermint can easily manage your transaction data without subjecting it to human errors or accuracy problems. Forget spending hours of time reconciling the books, Brokermint will handle it all for you by making it easy to track transactions as well as create a detailed set of records in case of a real estate audit.
- Comprehensive data and reporting right at your fingertips – Numbers will become your best friend when you start your own brokerage. Get real-time analytics and reports on all the metrics that matter. Create custom reports and use templates to fast-track the reporting process.
You’re likely to find lots of information about the required courses, how to generate more leads, etc. The truth is you won’t find a lot of information about how to start and lead a real estate business. That’s why you need a platform that can support your brokerage business and help you learn what you need to know as you go. Think of Brokermint as a trusted business advisor and your biggest supporter.
We invite you to learn more about Brokermint’s comprehensive real estate transaction management capabilities through a free, no obligation demo. It takes just 20 minutes to show you exactly how Brokermint can help take your brokerage to the next level with detailed, easy-to-use, straightforward and seamless management of all of your back office tasks.
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