Every Real Estate Agency exists to make a profit. What separates average Real Estate Agencies from successful ones though is the ability to make more profit, while maintaining a dynamic and passionate team. You need to know how to make your real estate agency more profitable while achieving great results for clients.
Some steps to consider are:
Re-engineering: This entails re-looking at your Real Estate Agency like you just bought it. Look at it with no emotional attachment, ask yourself what you would stop doing, and whose roles you would change. Look at the agency from scratch and redesign the processes and workflows. Align them to your objectives, key among them being increased profitability.
Process Improvements: This calls for one to look at their Real Estate Agency outgoings carefully. If you embark on a certain form of marketing, but it’s not bringing any leads, prospects or any measurable result, then you need to reconsider better options.
If you have an ongoing training process for employees and prospective employees, but it is having very little impact on increasing their skills, capacity, and productivity, then consider other options. Stop the current training and introduce a better one. Focus on process improvement, quality improvement, employee and customer satisfaction.
Efficiency: This is key to maximising profit potential. It pays to always look for efficiency gains in your day to day operations. Have a look at your expenses and embark on a cost reduction exercise. Check for cheaper options only, of course, with no compromise on quality. Find ways to get more value with minimal investment. Determine if some processes can be outsourced or automated rather than having permanent staff on a payroll who only perform occasional tasks.
Consider Your People
Human Resource: Human capital is an important resource for any Real Estate Agency. It has a direct bearing on the day to day operations and profitability.
Perhaps you have unnecessary team members. This reduces your profit margin. To remedy this, check for any redundant positions and phase them away. This could involve moving team members to more productive roles.
There might also be lack of clarity on job descriptions. If this is the case team members may not know what the most important parts of their roles are. Redefine and restate in a clear manner the job descriptions of each team member. Ensure that they are acutely aware of their job descriptions and their critical tasks. With clear descriptions and measurements, most people can be far more effective and efficient in their roles.
Also, consider if there is anyone that you think it would be better if they moved on. This may not be a pleasant activity. However, tough decisions have to be made if you want your Real Estate Agency to increase its profitability and passion. Once you’ve identified team members of concern, first make plans to increase their capacity and skills. Consider additional counseling or training. If they respond favorably and improve, then it’s a plus for the Real Estate Agency and for them.
Increase Your Service levels, and then your Prices: The aim of increasing the prices of your products and services is creating more profit per sale. If you maintain the same volumes of sales as before the price increment, then you increase both your profits and turnover. However, make sure that your service, and after-sales services increases first. This will keep your customers referring you as they will feel that they are receiving great value.
Owning a Real Estate Agency can be fulfilling owing to the excitement and wealth generation that can be created. If you are not proactive though, you may find it overwhelming, so continue to work on developing your agency. Hopefully this blog will assist you to know how to make your real estate agency more profitable.