Here are five phases to your real estate business. Which one are you in?
Phase 1: Surviving
You have just become a licensed agent. Expenses come quick and commissions take longer. When starting out, you are hustling to make contacts and convince potential clients to believe in your skills. This is the phase where you have to do as much on your own as you can, because cash is often leaving your bank account faster than you can earn it.
Phase 2: Expansion
You’ve got a couple of years under your belt, people have heard of you and you don’t have to work as hard to get a new client. While still grinding to expand your base, you are actually starting to earn some money.
Phase 3: Grow and Delegate
This is often the most challenging phase. You are busier than ever, work/life balance is non-existent but the money is starting to be really good. This is the phase where you need to bring on additional help in the form of an administrative assistant. You will also need to work with a really good accountant (like us!) to help you develop strategies to optimize your business and calm your life.
Phase 4: Multiply Earnings
This is a fun one! This is when you are so good and so busy that other agents can’t wait to work with you. They become part of your team and you earn commissions from their deals. You are still very busy, but are doing a better job at maintaining a work/life balance. This is the phase where we see real wealth being built. If you didn’t set up a PREC in phase 3, you will absolutely need to do that now.
Phase 5: Exit
You worked hard for years growing a great business with wonderful clients. Did you know that other realtors will pay you to work for those great clients? You can sell your client list and earn a percentage of your client’s sales with the new agent for years to come. Alternatively, you may actually be able to sell your whole business and take advantage of the capital gains exemption (more on that later).
So, what phase are you in and how can we help you progress?