Why first-time real estate agents fail

While most real estate agents start off business with the goal of turning their new business into a lifelong career,  the truth is that many never make it to their second anniversary. Being a real estate agent is one of the profitable ventures that require minimum startup capital but can be labour intensive, especially in the beginning.  Florence Nambooze, a real estate manager notes that majority of first-time real estate agents fail because they do not to plan properly for their businesses.  These are things one should put into consideration as they plan their entry into the real estate management business.

Have a business plan

Nambooze stresses that just as every other business requires a sound plan to succeed, real estate management too needs creating a road map to a desired destination.

“A business plan describes your business, the products and services you sell, and the customers that you sell to. It explains your strategy, how you are going to build and grow your business, what your marketing strategy is, and who your competitors are.  Most business plans, also include financial forecasts for the future; sales goals, expense budgets, and predictions for cash flow,” she says.

Beginning a business can be exciting which might blind investors into spending unnecessarily. “Before encumbering yourself with unnecessary expenses, first find out how this will impact you in the long run. With a business plan in place, you will be able to ascertain whether you need a physical office or more employees. Bear in mind that it might take you close to six months before you begin making any profit, so, how will you manage this period?” She says.

There are several options that can enable one to run this kind of business without incurring so much expense. For example, one can opt to work part time until they start making enough income to be able to transition to full time.

“While the business does not require much to run, it however, requires some funds to keep it moving,” the realtor says.

Not marketing effectively

Nambooze says that some real estate managers fail because of lack of marketing plans. In this highly digitised climate, at least every agent must have a website and other social media platforms where they can reach different clients.

“Your social media presence complete with a professional profile helps expose you to get more people that might need your services.  Keep your social media active and updated with the kind of information prospective clients need. If you have a website, make it interactive so that you are only a click away from your clients. Upload projects and to stay up to date on the latest real estate trends and share them with your followers. Share valuable information with past and future clients, both to educate them and to stay on their minds. Most people will return to you if you handle them with care and respect,” she advises.

Being scared of mistakes

As a first-time real estate agent, Nambooze says one should expect mistakes.  “Making mistakes does not mean that you are a failure. It means that you are learning what not to do. Embrace every error as a teachable moment, not an embarrassment.  Similarly, remember to try new things. Test everything to see what works and what does not,” she says.

Not building a referral network

Building a referral network is crucial to taking your career to the next level.  When you neglect generating referrals you find yourself having to put in the same amount of effort generating leads every year. This makes scaling your business without burnout nearly impossible. If you want to become truly successful, you need to steadily increase the percentage of your clients that are referrals every year. The cold hard truth is that referrals generally come from strategy, not luck. Agents who get a significant percentage of their clients from referrals almost always have strategic plans to build their referral networks. One of the often overlooked but effective ways to get referrals is by giving the best service to your client. It is easy for a happy client to refer you to their friends and family.