I don’t think it’s a secret that creating a team or build a business difficult. Yet all too often I see benevolent entrepreneurs go full steam ahead and then crash and burn out.
Don’t get me wrong – to be successful in business, you need that drive and determination and attitude, but you also need clarity. sequence, and the intention to play an endless game.
As a visionary, entrepreneur, or business leader, the last thing you need is for someone to tell you what you want to do. Believe me, I got it! But when we hide from the truth, we are doing ourselves a disservice.
Ben Horowitz, co-founder of Andreessen Horowitz and author of the book The Difficult About Complex Things: Building a Business When There Are No Easy Answers wrote: “Difficult things are difficult because there are no easy answers or recipes. This is difficult because your emotions are at odds with your logic. They are difficult because you do not know the answer and you cannot ask for help without showing weakness. “
I hope to help you a little here. First, asking for help is not a sign of weakness (sorry Ben!). This may indicate a lack of knowledge or experience in a particular area, but both can be corrected. But only if you ask questions to get the help you need.
Secondly, there are many people who have built very successful real estate teams and companies. Let them show you the way. More importantly, you must remain as focused and neutral as possible, not letting your emotions get in the way of making a difficult decision.
It’s true, sometimes there are no easy answers for you and your current situation, but making those tough demands and facing the truth is what sets you apart from your competitors. To think about building a real estate team? Here are five brutal truths you need to face before you start.
1. At some point, your salespeople will earn more than you.
Think of your business as an NBA team. Who Earns the Most? Players, huh? These are your sales agents. Trainers and the owners of the team? They may not be getting that kind of annual income.
In fact, a team owner may even invest large sums of money or suffer losses over several years. But they are building more than themselves. They are in the mood for a long game.
To truly build a real estate business (and not just a sales team), you cannot depend on the income you earn as a real estate agent. It can be a lot of money and a great career choice. But there is a difference between a CEO or company owner and a real estate agent.
One is not better than the other; They are just different career paths. As a business owner, you will need to decide what annual income works for you and your family (preferably below your funds) so that you can start investing the rest in the business, in people and in the setbacks that you will inevitably make as a result of you growing your company. …
You will need put your ego aside… Yes, some of your agents may be making more money than you – perhaps for some time. But it has to be more than just money. You must be driven by the desire to build, create, lead and work whenever and wherever you want. If you approach it from this perspective and stick to the course, you will be rewarded in many ways, including financially.
2. You will not be able to control everything
This can be difficult to accept by strong-willed (or stubborn), laser-focused independent entrepreneurs. But relinquishing control this is what transforms you from an entrepreneur to a business owner.
You will need to allow other agents to work with your clients. You will need to hire people to oversee your finances, marketing, and operations. You will need to delegate decision making to trusted team members. You will need to say no to a multitude of appointments and requests, and to say yes to only a few important projects and responsibilities that only you as CEO can handle.
This will be unnerving at first. Your team members will make mistakes and make decisions that you don’t have to make. This is where your leadership skills are developed and your team ultimately thrives.
Certainly correct. Help them understand your thinking and how you would handle the situation and keep moving forward. But just don’t take control! This will be your first answer. Better to just do it yourself, right? Wrong!
The only way to truly grow and build a company is through other people, and if you’re not willing to fail because of their mistakes, you and your company will be forever stuck at a certain level.
3. Learning to lead and succeed through others will be your biggest challenge.
Speaking of which, investing in people will probably be your biggest challenge when building a team or company. You are not just investing money, you are also investing your time (with the likelihood that this may not work).
You also put your faith in the people you lead will treat your company with the same care and respect that you do. Our business is our children, and it is not easy to pass it on to someone else.
This is why people are the most important investment you can make in your company, and one of the most difficult. You are losing control. You can’t just turn on your internal drive and do it. You must learn to channel this energy and experience into teaching others how to make a sale, manage a deal, design a marketing campaign, negotiate a deal, etc.
As the old adage goes, “Give a man a fish and you feed him throughout the day. Teach a man to fish, and you will feed him for life. ” This also applies to your business. You can either carry fish all day (which sounds exhausting), or you can teach your team how to fish.
You can be the one who helps them become so good at it that they have a huge supply, give out fish to the local community and start inventing what to do with fish because they have so much. This is what real success looks like through others. It helps them, and it helps you.
However, this requires commitment leadership… Learning leadership principles, implementing communication channels and cadences for daily expression of the vision, listening to and reading leadership books and podcasts, practicing leadership in every conversation, attending leadership courses, and most importantly, leading oneself first. This is a challenge that never ends.
4. To accelerate, you need to slow down.
Do you feel the need for speed? I’ve definitely done this for most of my career. Nothing was ever done fast enough, and I wanted to keep doing more and more in a shorter time frame.
I think a healthy sense of urgency is good; It helps to promote projects and companies. However, in order to truly build a company, you need to slow down and build a solid foundation – a foundation of systems, models, and processes.
In addition, as a leader, you need to slow down and learn to attract, hire, and hire talented people to join your organization. You can actually go a little faster if you have the right team members. But this is because they will slow down the construction of the foundation for you.
It can be frustrating to stop and fix systems, or build them from scratch. However, this is once again what separates companies that can grow, scale, and stand the test of time from companies that bloat and burn out.
Often in real estate, I see a team or business built around a lead agent / CEO. For example, a transaction coordinator who knows how the lead agent likes to manage their clients, or a couple of show assistants who are here just to serve the lead agent. These are great leverage, but this is not a company. If you remove this lead agent, nothing happens.
When you start building a real estate team / business, think about what it would look like if you weren’t in production. Build your systems and models around this. Stronger? Yeah. Will it take longer? Probably. But then it lets you work on the business (overall strategy, recruitment and business partnership) and insert in business anytime, anywhere.
5. It will take you 5-7 years to build a sustainable and successful business.
Patience, young grasshopper. One of the hardest truths about building a team or a business is that it takes years! Years of trial and error, starts and stops, creation, creation and repetition, hiring and firing, stormy days and long sleepless nights.
Company formation is not for everyone. IN 2019, startup failure rate was 90 percentand 21.5% of startups fail in the first year, with 30 percent failing in the second year. This is the cruel truth.
According to Investopedia, if you don’t want to be a part of that 20 percent, you need to set clear goals, know your market and consumers, love your job, and not quit. I think the last point is very important. It is difficult to build a real estate team and start a business. Period. It will take at least five years to truly see the fruits of your labor and feel the freedom you were probably looking for in the first place.
Sounds fun, right? It! When you embrace the struggle and find joy in the difficult, you will not only survive your competition, but you will also achieve the freedom and satisfaction you need. Face the harsh truth that lies before you. Let go of the result. And fight ahead – always.
Adam Hergenrother – Founder and CEO Adam Hergen … other companies, author Founder and multiplier of strength, and a podcast host, Business meets spirituality… Learn more about Adam’s Holistic Approach to Business here…