How to transition, optimize and uncover strategies to effectively manage your business and move forward in a transformational way
The real estate sector has undergone significant transition and disruption over the past years, which is felt by brokerages of all sizes, the real estate community and the industry at large. Not only has the industry experienced a fierce battle amongst brokerages for the most fought-after talent for years, but the intensity of innovation in terms of cutting-edge tools and resources available to its agents on the front lines is skyrocketing. So much so that real estate professionals often find themselves seemingly drowning in resources and suffering from technological overwhelm while racing to understand its benefits and learning to effectively utilize them.
Above this sea of innovation and tools, as well as coaching resources primarily positioned to improve sales and marketing skills, a rather unfilled gap in the brokerage environment has been that of optimizing and effectively managing the agents’ own business operation, and providing guidance for agents to become effective business owners and business leaders.
But where to start, especially when you find yourself in disruption and chaos, and you are looking to address challenges through effective cost management, organizational optimization and sustainable planning? Evaluating the current state of the business, finding areas for improvement and optimization, and identifying solutions to chart a path forward are the areas to address in order to guide agents to run a more efficient, strategic and intentional business.
Critically important in this process is getting crystal-clear about what needs require alignment, consciously deciding to take back control despite the confusion, as well as acknowledging destructive business and thought patterns. By focusing on what you can control and taking charge of the situation, you gain clarity and control, which allow you to move forward in a constructive way.
Unhealthy financial habits, the lack of business planning and budgeting while unclear on the ROI on initiatives, leaves many in the industry in a place where taking inventory becomes non-negotiable in an effort to run a sustainable business. Not surprisingly, not all expenses carry the same significance, and determining what expenses cannot be eliminated or reduced—in other words, expenses that are a must, versus non-essential expenses that can be cut easily; those that do little or nothing to make your business a success—is key during this part of the process.
Business owners would be remiss if they leave it at evaluating finances and cutting costs during challenging times. Identifying and implementing creative solutions while looking for opportunities to create additional revenue streams are essential when transforming a business. Those that aren’t afraid to ask for advice or help, and involve experts inside and outside of their organization, tend to make the greatest progress. Evaluating services that can be transformed, expanded or re-marketed to meet a current client need (or the way services are delivered to spike revenue), can be the cornerstone to ensure offerings are as relevant as they have been in the past.
Business optimization and planning is a long-term undertaking and will ultimately transform businesses, leading to sustainable results. Committing to it will not only allow business owners to run their real estate business more cost-effectively. It will also create bigger margins, improve relevancy and relationships, and allow for more control, focus and clarity. By evaluating strengths as well as current structures, systems, processes and initiatives in place, it will become evident whether long-term goals and sustainable business growth are supported.
With or without a crisis, the world and economic environment is ever changing. Like any business, the sustainable success of a real estate business depends on how agile and adaptable it is. Furthermore, the peace of mind that comes from managing a business proactively cannot be underestimated. And not only that, it puts the business owner back in the driver seat, which allows for better overall performance.
For more information or free resources on how to bring clarity to chaos and how to effectively manage and optimize your real estate business, visit www.weilerinternational.com.
Marion Weiler is a senior business management and marketing executive, and principal at Weiler International, advising executive teams and business owners, particularly in the real estate and construction industries, whether during crisis management or business growth. As a former senior executive of world-renowned and industry-leading global firms, most recently as SVP of marketing for a Sotheby’s International Realty affiliate in New York, Marion has a deep understanding of the challenges and opportunities businesses face in an ever-changing world. Her approach was perhaps best described by one client as “Feng Shui for businesses” by providing guidance to be more effective and relevant, elevating leadership skills, identifying opportunities for growth as well as cost efficiencies and eliminating redundancies.