Many businesses, real estate companies included, usually aim to expand their operations after a few years. Before pushing through, however, there are many factors to consider carefully. Timing is a crucial one. Expanding too soon can “shock” your organization; expanding too late, on the other hand, may mean missed-out opportunities.
Aside from the right timing, there are also other considerations to think about if you’re serious about expansion. Here are some of the most important ones:
How Are You Going to Hire More Agents?
Expansion can mean a lot of things for different businesses. For real estate brokerages, this can mean hiring more agents in order to accommodate more clients. The issue here is that it can be difficult to find talented real estate agents who can truly push growth.
One of the best solutions to this dilemma is to use hiring software and other technological tools. For example, Wizehire (sometimes misspelled as “Wisehire”) is an online recruiting service that can help you improve your job ads and streamline your hiring workflow. It can also be integrated with other software and tools, which can automate several processes so it’s easier to manage recruiting tasks.
Is Your Cash Flow in a Good State?
When it comes to business, you need to spend money in order to earn more money. Hiring a couple of new agents and investing in real estate software alone will mean spending a few thousand dollars. What more if you’re going to put up a new office in a new location?
In short, you need to be financially prepared before you expand your real estate company. At the very least, you should be ready for the possibility that it will take some time for you to see a return on your investments.
You should also study historical financial data and make forecasts on when you can make back the money. If it’s going to take too long, you might want to hold off on your expansion plans in the meantime.
Are You Reaching Your Goals?
Before you even start thinking of expanding your brokerage and setting more ambitious goals, you need to take a look at your current ones first. If you’re reaching or surpassing these goals, then you can go ahead and pursue your expansion plans. If not, focus on achieving those existing targets.
You may also want to consider making adjustments to your current goals. Evaluate them and see if you’ve set unrealistic results or timelines. Remember the old mnemonic tool: goals should be SMART— specific, measurable, achievable, relevant, and time-based. If your current goals don’t meet these criteria, consider making changes to make them more appropriate.
Once you’ve attained your objectives, you’ll be in a better position to think about growing your business. You can also use your previous success as a guide in establishing new, bigger, yet achievable goals when you expand. Investors and potential will also be more inclined to put money on your brokerage when they know that you have the ability to meet your goals sustainably.
Who and Where Are Your Competitors (and What Are They Doing)?
The real estate industry is highly competitive. Thus, assessing your competitors is a wise move before you formulate expansion plans. You need to know who and where they are; some of your competitors may actually be companies outside of your immediate territory. You need to study your commonalities, as well as your differences.
Studying your competition can give you insights into how you can better position your company for growth. You can also weed out tactics that don’t seem to be as effective. The bottomline is to not be envious of your competitors’ success. Instead, learn from them!
Is Everyone Ready?
As someone in a leadership position in your brokerage, you’re understandably and undoubtedly eager to get started on expanding and creating new opportunities. However, not everyone may be ready for the change. Not everyone may have sufficient motivation to do the work that’s required and that inevitably comes along with business growth.
Remember that it’s not just your real estate company. Everyone has a stake, even the most junior hire, and so everyone must be on board. If your company fails, you might be all right for a while but others might not. Make sure that everyone knows the risks, as well as what everyone stands to gain. Communicate often, take note of everyone’s concerns, and provide reassurance for these concerns.
Everyone should also be ready for the inevitable challenges you’re going to face once you do start on the expansion. There will be birthing pains and other issues that can come up. With ample preparation, these challenges won’t feel insurmountable.
It’s definitely nice to imagine how your brokerage would be like once you’ve launched your expansion plans. It would even be better once you’ve made it a reality. Take note of the above-mentioned concerns and make sure you can address them well so that you can successfully enact your real estate company’s expansion.