Should you make the leap from Real Estate Sales to running your own business? Paul Davies, from One Agency, gives his opinion.
If there is one thing I’m particularly passionate about, its empowering people into their own business.
As the owner of your own business it’s fair to say that you will generally work harder than if you’re working for someone else – it’s just human nature – however the benefits of running your own operation almost always outweigh the negatives, especially on an emotional and personal satisfaction level.
While as a business owner you are inextricably linked to your company and can rarely turn your back on it for a moment, the drive and incentive it gives you to push yourself and pursue great things is reason enough to go out on your own. I believe it’s pretty much impossible to get the same sense of reward and achievement when you work for someone else and in this day and age we are increasingly conscious of feeling fulfilled in both a personal and professional capacity. Anyone with any real vision deserves an opportunity to do things on their own terms and see just how much they can achieve … and how much they can learn and grow along the way.
There are just so many advantages to sailing your own ship. You’re in control of your own destiny and future and you can operate the business in your own signature style. You’ll never have to take direction from people whose views you might not share and your input will never be overlooked again. There is a direct correlation between your input and the success of the business – the harder you work the more you’ll get back for YOU, not for someone else. Most importantly, there’s a premium level of service that goes along with owning and operating your own business. Clients can generally expect a far greater level of care and attention from someone who has a vested interest in the success of a company and this is often what helps it to thrive and flourish.
When it comes to real estate, it continually amazes me when I see very capable, professional, well-known sales agents who do all the work associated with creating income having to turn around and give a huge chunk to their head office. Reliable benchmarking suggests a typical real estate business keeps 10-20 cents in the dollar of gross turnover. This is considered normal however I think it’s abnormal, and I’d go as far as saying it’s absurd. That’s 80-90% of all your hard work gone on operating costs!
It just shouldn’t be that way and that’s the imbalance we attempted to address when we opened our operation. So many agents, including those working for larger franchises, are essentially running their own show yet without enjoying all the benefits of owning their own business. It’s their name, their reputation and their own hard work that drives their success, however this is often absorbed by their agency and constrained by the limitations of working within a structured franchise. Industry observation has clearly shown that vendors choose an individual sales professional over an organisation. The allure of the big franchises just doesn’t seem so attractive anymore, often because their branding and marketing just can’t keep pace with more flexible contemporary operations.
Fortunately these days it’s become increasingly easy for successful agents to open their own enterprises without the usual exorbitant expenses and headaches formerly associated with establishing an agency. It’s been an industry norm (and a bit of brainwashing) that opening a real estate business is costly and full of risk. But it doesn’t have to be that way.
My belief is that the industry is changing in such a way that individual agents who are the architects of their own success, and often that of the boutique agency or franchise they may work for, will continue to take up opportunities to establish their own office, with their own name attached. Because after all, in real estate, your name really is everything!