How to open and not to close the real estate business in six months?
Successful Realtor Business: A Benchmark
Surely, many of you noticed such a sad fact: a bright banner on the ground floor of the house with the inscription “We opened!”, And six months later there was a no less bright banner with another message: “For rent”. What steps and decisions lead to failure of real estate startups? And why is it easier to develop a business under a strong brand? About this – in an interview with Denis Vtorushin, head of the launch line of the federal real estate company Etazhi.
– Denis Alexandrovich, how many franchisee partners do Etazhi have today? How often are potential business partners new to business? And how great are their chances of achieving success?
Today we have more than 50 partners in four countries – Russia, Belarus, Kazakhstan, Latvia. As for newcomers, there are enough examples in our business practice when newcomers to the business under the brand name “Floors” became effective managers.
At the start-up stage, we begin to move along a road map that details all the initial actions of an entrepreneur – market analysis, team building, selection and design of an office, site filling.
This document outlines specific tasks with deadlines and tools to solve them. That is, it is a clear, understandable, structured business plan for the start.
Plus, to help the new team – an opening manager – a specialist with a sufficient set of competencies and skills. With such support, it’s hard to make mistakes.
– What mistakes, in your opinion, are the most common among beginners starting work without a strong partner?
First of all, this is a poor-quality analysis of the competitive environment. Often an entrepreneur does not have enough information. We insist on collecting the most complete analytics using specific tools.
This will help to understand the market structure, the share of large players, the total number of objects on display, the depth of penetration of real estate services.
The combination of these and other factors will become the basis for an effective strategy for entering the market. In our practice, there were situations when, on the basis of analytics, we changed the region of exit.
The second typical mistake of a novice owner is unwillingness or inability to delegate. The principle “I will do it myself better” does not work in our business. A real estate company is a team of people with different functionalities, respectively, with different skills and competencies.
The third mistake is defocusing. The owner forgets about the main goal, engaging in other areas. As a result, there is no result or it does not meet the planned indicators.
Realtor company “Etazhi” – a federal network of real estate agencies operating in the market since 2000
– What mistakes can an entrepreneur make when forming a team? And which team, based on the experience of your franchisor company, should be formed at the start-up stage?
A typical mistake is the selection of personnel “for themselves” and “for now.” If the owner likes him, this does not mean that he will be as functional as possible in his place, and moreover, functional in the long run.
Regarding the second question about the team. According to our standards, the start-up team includes a director, an HR manager, a mortgage broker, a lawyer, an information department specialist and a sales department staff consisting of real estate specialists.
We help to form a start-up team according to our standards and “set up” a management system. This is a free service for franchisee partners. For each specialist, there is a profile of the necessary competencies, therefore, candidates can be selected quickly enough.
Applicants for the position are finally agreed by the head office. Then begins the period of adaptation and training – offline and online. We have developed special training methods for specialists, so after 4-5 weeks, new realtors are already entering the first deal.
Thus, a healthy eco-system of a new business is formed. Further, the head office monitors the performance of the new company under the brand name “Floors”. To help – more than 20 departments in all major blocks of work. We are together with our partners 24/7.
– The issue of control is rather delicate. How do business owners perceive this moment? Especially those who already have experience in real estate?
“I am a seller from God, therefore I will teach others to sell”: yes, we met with such beliefs. The entrepreneur highly appreciates his personal results and is confident that his new company will always be at its best.
He tries to go his own way, experiments, and does not attach much importance to the intermediate results, immersing himself in routine. Then the coveted “breakeven point” turns into a sad “hopelessness point”.