5 Steps to Transition From Agent to Principal
Have you thought about stepping up from agent to business owner? An exciting and scary thought, right?! Here are 5 tips to help you on your way.
First, if you have been in the industry long enough to understand ‘what it takes’ to win listings and maintain excellent relationships with your clients, then you have what it takes. Don’t make the mistake of thinking you need years and years of experience.
Second, you need to be open to seeking advice from those who have ‘been there and done that’. An obvious way to do that is to join a brand. By joining an established brand, you’ll receive assistance to get set-up and running. This will allow you to focus on growing your business and maximising your profits. Hiring a business coach and a property management consultant are also smart ways to become a better, more successful principal.
Third, build a rent roll. A rent roll can become the foundation of your business. It provides consistent income, regardless of market conditions. Plus, a rent roll is a saleable asset. You’ll also benefit from the extra signage in your local market – more signs, more marketing and more exposure, thereby growing your brand.
Fourth, you need to remember the saying that One Agency founder and CEO Paul Davies has become famous for:
“it’s not what you make, it’s what you keep that counts”.
Profits are far more important than revenue. Always look for ways to minimise your costs, especially your fixed costs. (One reason to choose One Agency is because you won‘t have to pay commissions to head office.)
Fifth, be sure you see relationships as a form of currency. The business of real estate is all about relationships, but they take time to build. The more people you get to know, and the more effort you invest in nurturing those relationships, the more clients and referrals you’ll attract.