When you start a new business should you focus on saving money or making money?
In the past, starting and running a successful agency meant you had to be a jack-of-all-trades. UrbanX’s Dan Argent examines this theory – and the new realisation that trying to be all things to all people may not be the best bet.
Ask anyone who’s kicked off a venture, and they’ll confirm that as well as being the primary income generator, they also had to be a bookkeeper, a marketing manager, a business development manager, human resources executive, payroll administrator and media guru.
While these tasks are necessary for running an operation, tackling them yourself could damage your chances of success, and potentially send the business broke before you even open the doors.
However, there is a solution that will bring in more money, increase your skills and deliver a better life.
THE COST OF DISTRACTION
In decades gone by, those launching their own business were admired, but also considered a little bit weird.
Why would you leave a secure job to go out into a world of uncertainty and start up on your own?
Worse still, why would you willingly choose the high pressure, quick learning curve and sleepless nights associated with getting an agency up and running?
Times have changed for the better because this brave new world is all about outsourcing and specialisation.
Here’s a good example of why specialisation works:
Not too long ago, it wasn’t unusual to see agents selling anything and everything in their power.
They would happily travel from inner-city apartments to rural residential acreage properties to earn a commission.
But as our profession has evolved, we’ve discovered it pays to specialise.
When I kicked off my business, I decided I would be the number one agent in my suburb selling houses priced above $1 million.
It paid off handsomely.
I built a personal brand and attraction business that had sellers calling and offering me their listings.
Similarly, we have learnt to specialise our skills, so I believe we should outsource to professionals in other fields.
These people are going to be far better than you at what they do.
They are efficient, knowledgable and highly skilled.
You’ll benefit from their years, and sometimes decades, of experience simply by choosing to work with them rather than do it yourself.
And the benefits to your business will be ongoing.
THE VALUE OF YOUR TIME
As a professional agent with years of experience, you’ve built a skill set that is unique and lucrative.
Your value is in the networks you’ve cultivated, the market knowledge you’ve acquired, and the negotiation skills you’ve developed.
These valuable skills are there to help you earn a dollar, if you use your time wisely.
You must be free to concentrate on tackling those tasks that grow your income through listing, marketing and selling real estate.
Why waste time doing things like managing the books, running social media campaigns, filling out documents or even banging in signboards?
If your skills can earn your business $250 an hour, why waste minutes tackling tasks that bring in no tangible income and that could be done by someone else for less?
There are other flow-on benefits beyond increasing your dollar-productive hours as well.
When you free up time by outsourcing dollar-negative tasks, you become a far better agent for your clients.
You will be more attentive and available.
You will employ more of your brain space on designing ways to achieve the best possible results for your sellers.
You will make time to become better educated about your market and improve yourself through networking.
Here’s the upshot – happy clients tell others.
You’ll rightfully earn a reputation as an agent who makes their sellers their number one priority.
You’ll be seen as smart, engaged, skilled and capable of consistently delivering exceptional results because you aren’t distracted by administration.
There’s another benefit too.
I learnt the hard way that if you neglect your personal life because you’re too busy trying to write fees and run the agency, things can quickly fall apart.
Outsourcing administration allows you more space for being a better parent, partner and friend.
It also gives you room to maintain your health and happiness – things that are as essential as income.
DEFER THE COST
Best of all, the way you pay for back-end administration has evolved.
It’s now possible to receive all the start-up and operational assistance you need in exchange for a relatively minor percentage of your commission once you earn it.
That’s right, you can defer the cost of this help until you bank an income from your specialist talents.
It’s time for you to work on your own business, not in it.
It’s the modern approach to agency that’s helping make real estate great again.
- Dan Argent is the Chief Energy Officer at UrbanX. For more information visit urbanx.io