Why Early Estate Agents Fail
While most real estate agents start their business with the goal of turning their new venture into a lifelong career, the truth is that many never reach their second birthday. Being a real estate agent is one of the profitable businesses that requires minimum start-up capital, but can be a lot of work, especially in the beginning. Florence Nambooze, a property manager, notes that the majority of first-time realtors fail because they don’t plan their business properly. These are things to consider when planning their entry into the property management industry.
Nambooze points out that just like any other business requires a solid plan to succeed, property management must also create a roadmap to a desired destination.
“A business plan describes your business, the products and services you sell, and the customers you sell to. It explains your strategy, how you will build and grow your business, what your marketing strategy is, and who your competitors are. Most business plans also include financial forecasts for the future; sales goals, expense budgets and cash flow forecasts,” she says.
Starting a business can be exciting, which could keep investors from spending unnecessarily. “Before burdening yourself with unnecessary expenses, find out first about the impact it will have on you in the long term. With a business plan in place, you will be able to determine if you need a physical office or multiple employees. Keep in mind that it might take you almost six months before you start making a profit, so how are you going to manage this period? ” She says.
There are several options that can help run this type of business without incurring as much expense. For example, a person may choose to work part-time until they start earning enough money to transition to full-time.
“Although the business does not require much to operate, it still requires funds to operate,” says the realtor.
No effective marketing
Nambooze says some property managers fail due to lack of marketing plans. In this highly digitized climate, at least every agent needs to have a website and other social media platforms where they can reach different clients.
“Your social media presence with a professional profile helps you attract more people who may need your services. Keep your social media active and updated with the kind of information potential clients need. If you have a website, make it interactive so that you are just one click away from your clients Upload projects and stay up to date with the latest real estate trends and share them with your followers Share valuable information with your clients past and future, both to educate them and to stay in their minds. Most people will come back to you if you treat them with care and respect,” she advises.
As a first-time realtor, Nambooze says mistakes are to be expected. “Making mistakes doesn’t mean you’re a failure. It means you learn what not to do. Accept every mistake as a teachable moment, not an embarrassment. Also, don’t forget to try new things. Test everything to see what works and what doesn’t,” she says.
Not building a referral network
Building a referral network is crucial to taking your career to the next level. When you neglect to generate referrals, you find yourself having to put in the same effort to generate leads every year. This makes it nearly impossible to scale your business without burnout. If you really want to be successful, you need to steadily increase the percentage of your customers who are referred each year. The hard truth is that referrals usually come from strategy, not luck. Agents who get a large percentage of their clients through referrals almost always have strategic plans to grow their referral networks. One of the often overlooked but effective ways to get referrals is to provide the best service to your customer. It’s easy for a satisfied customer to refer you to friends and family.