Five Things Every Realtor Should Know Before Starting a Business
Manage debt For any new realtor, a certain amount of debt is inevitable. Unfortunately, expenses come before income. Many new realtors have to borrow money to finance vehicles and initial operating expenses. Financing is an important part in managing and growing your business. What you need to watch out for is the level of debt you take on. When debt payments get too high they quickly become unmanageable, greatly affecting your business. Debt can be a tool to help you grow, but it must be within the financial constraints of your business.
Find mentors You might assume a realtor at the top of their field has little to learn, but everyone can improve. A new realtor can greatly improve their business by seeking out a mentor with more experience. A mentor will also help you avoid the mistakes they made. New realtors will have to make decisions they have not made before. Having a mentor’s guidance and perspective can prepare you to face these challenges.
Find stress relief This is crucial! You will be under deadlines you never imagined. Juggling cash flow, managing client personalities and landing the next deal are a never-ending workload. Finding stress relief will sharpen your attention, memory and ability to deal with others. It will also help to prevent this stress from creeping into your personal life. Find something you enjoy doing: running, walking the dog, playing with your kids or meditation. Managing your stress is the best way to improve everything!
Think twice and then a third time before hiring A bad hiring decision is one of the most costly mistakes you can make. It can drain your bank account and suck all the energy out of your daily life. You often don’t realize the effect the employee has on you until they are no longer there. The opposite is true of a good hire. They can transform your business and make you a better leader. Is a 30-minute interview enough to judge how well the individual will perform? It is crucial to assess your candidate’s skills by giving them a practical test to give you a better idea of the impact they will have on your business. We know of one company that puts each potential hire through a two-day paid virtual skills assessment before offering anyone a position.
Don’t forget about tax planning It can be difficult to separate business financial planning and personal tax planning. This is a great reason to work with an independent advisor. Bear in mind that the best business decisions are not necessarily the best tax decisions. It’s important to be able to manage the two together. Having someone to assist you with building wealth is priceless. Remember, no one is expecting a new realtor to have all the skills they need on their first day. Most of these skills are learned the hard way, by making mistakes along the way. As advisors that have worked with the top realtors in Ontario, we understand the demands you are under as a realtor. Finding the right advisor you can trust is the best advice out there.
