More and more people are admitting that their regular jobs are unfulfilling and are stepping out into the world of self-employment. Most are happily accepting that a pay cut comes with establishing a business. They’re doing it to enjoy more freedom in what they’re doing and, in most cases, the opportunity to turn a hobby into an enterprise.
The Rewards and Responsibilities of Running Your Own Brokerage
Getting Ready for the Moment
When it comes to real estate, you’ve spent your off-hours taking classes and talking with people already in the business. Perhaps you’ve already tested the waters a bit by going on house tours just to see what potential home buyers look for in properties and to see what the big selling points are that real estate agents point out that are most attractive to renters and buyers alike
While being in business for yourself can have its rewards, you want to do some extensive planning before making that leap. Are you the person who prefers to hunker down at your desk and keep your nose to the grindstone with only minimal socialization with coworkers? Or are you the one people go to because if you don’t know the answer, you know who to go and get it from?
The Reality of Business Failure
The average business fails within the first two to five years. This is usually due to a lack of upfront planning and goal-setting. It’s also the result of a lack of financial planning. Don’t expect your brokerage to turn a profit immediately. A lot of new businesses were established during the pandemic because of government stimulus payments being used as capital to get started.
Some Things to Take Into Consideration
You’re going to need to embrace that someone else may have a better way of doing things than you. It might mean delivering a better product to your customers. You want your brokerage business known for delivering value over quick profit.
Perhaps you’re that person who has the ideas of how to better serve your customers after years of observing how other companies are operating. You’ve seen how the “other guys” work and you know you can serve the public better. Once you find the right brokerage program to join, and get approved, you can then promote your new brokerage as a place where things are done in a new way.
If you’re not a social person, take some classes in public speaking and interpersonal communication. Or, be ready to hire someone who has these skills to represent you. Such skills will also help you when it comes to communicating effectively with any employees you hire.
Running a Business is Serious Business
Be ready to “go all in.” Running a business is not a 9 to 5 job with weekends and holidays off. It’s an all-day, everyday job. Your new business is going to occupy the vast majority of your time for quite a while. Your family will likely need to make some sacrifices, too, while your business is in the early stages. That being said, getting tunnel-visioned into thinking about nothing but your business is another, not often discussed danger of going into business.
A Few More Things to Think About
Have an understanding of your potential market. This is another area that causes the demise of many businesses. A brokerage in a large metropolitan area is going to be different from one in a rural area. The clientele of each has different needs and expectations of what you are going to do for them.
Build your business on rational decisions rather than hunches. See if there are local companies offering computerized modeling for your area. These should be able to provide you with projections showing which areas are going to the hot spots people want to move into or establish a business in.
Keep an open mind. Try not to let yourself become entrenched in “doing things the way they’ve always been done.” Technology, and society in general, change rapidly now. The features and perks customers were looking for 10 years ago have changed drastically. There’s nothing wrong with old-school values, just be open to the changing expectations of your customers.
Running your own business can be rewarding. It can earn you status in your community. But along with the rewards comes responsibility and planning. Plan to be in it for the long haul.