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Growing Your Real Estate Business

In this article Christie explains how his business has grown from a staff of three in the 1970’s to over 70 today, specialising in residential and commercial sales, project marketing, residential and commercial property management, holiday letting and business broking.

I firmly believe that the key driver of PRDnationwide Whitsunday’s exponential growth in recent years has been the creation of and adherence to a divisionalised model, designed specifically for a thoroughly”modern, fast”growing real estate business (please note my use of the term business as opposed to agency). Historically, real estate agencies are made up of a Sales Department with Property Management growing off that department.

These budgets are monitored daily, weekly, monthly, quarterly and annually

The business done by the traditional agency grows in volume either by an increase in market growth or market share. The competition is with other outside agents for market share. Some years ago PRDnationwide Whitsunday decided to follow the business model of creating separate profit centres or divisions which are as follows:

  • General Sales
  • Project Marketing
  • Special Projects
  • Residential Property Management
  • Commercial Property Management and Leasing Holiday Accommodation
  • Satellite office on Hamilton Island

Each of these profit centres now runs to both an income budget and to a separate profit and loss centre. The income budgets are formulated by the team members at our annual Business Planning Day and there is no doubt in my mind that the competition that exists interoffice and inter”department helps to stretch these targets and to drive our business to greater heights. These budgets are monitored daily, weekly, monthly, quarterly and annually through various systems in the business and whilst income is important the performance of the department is further broken down into real profit centres.

The P&L’s for each centre are driven by income and direct expenses such as commission and wages for people are directly related to that department etc.

Expenses that relate across the business are broken down and are proportioned to each department based on a formula calculated by a percentage of people who produce in that department and a formula used on floor space of that department towards the total floor space of the business. These financials really show the owners of the business which departments are performing and returning a significant profit to the owners.

This model allows the agency to create several income streams and in turn assets such as property management and body corporate management etc. It also allows the business to specialise and provide a real career path for people in a particular section of the business.

Others within the business see the opportunity to play various roles within the company over a longer period of time and don?t see as greater need to leave the company to gain experiences in other divisions.

We will continue to grow our business into new markets and will seize new opportunities such as further growing our Marketing Department and Research Department into income streams for through our business.

We believe that our first satellite office on Hamilton Island will grow into other satellite offices throughout the country and in particular dosed with a project marketing slant.

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