If you’ve worked as a real estate broker, you may have considered starting your own brokerage firm. Opening your own firm can lead to increased freedom as well as financial opportunity. However, like any entrepreneurial endeavor, building a company from the ground up can be a daunting task.
Members of Forbes Real Estate Council know about the challenges of establishing a new firm—as well as how to overcome those challenges successfully. Below, members share the most important things to remember when starting your own real estate brokerage. Here is what they advise:
Members discuss a few things to keep in mind when building your own brokerage.
Photos courtesy of the individual members.
1. Learn To Delegate
Most successful brokers think they can do everything better themselves, so they have a hard time learning how to delegate. New brokers often get caught up with the tedious, time-consuming tasks involved with running a business, which quickly consume all their time. Focus on the culture and growth of the brokerage, and delegate all the other tasks to your staff. – Donald Bake, New Western Acquisitions
2. Focus On Quality Over Quantity When Recruiting
It takes years to build a reputation and sometimes just minutes to ruin it. Don’t forgo quality to build your numbers quickly when recruiting. Having the right people on your team whose goals, integrity and work ethic are in line with your firm’s is important for longevity and building or maintaining a brand and reputation. – Catherine Kuo, Elite Homes | Christie’s International Real Estate
3. Craft Your Narrative And Culture
You are now at the helm. Now what? Build it and they will come, right? Who will come? Associates? Clients? These components—and the administration—are the grist of your brokerage. What will your narrative be for who you are, who your associates are? Your culture is yours to make. Build it so it can be explained, allow for input from others, and then it will stand. – Michael J. Polk, Polk Properties / Matrix Properties
4. Balance Long-Term And Short-Term Goals
It is important to balance long-term objectives with short-term goals. Don’t commit to revenue without looking at the bigger picture. It is difficult to pivot without having an overarching plan in place. Taking actions towards long-term goals while not losing focus of the immediate revenue needs will ensure that you are still viable tomorrow. – Yana Nirshberg, Haus Mortgage
5. Commit To Your Clients
When building a brokerage firm from the ground up, it is important to always maintain a commitment and focus on the client. Building a brand reputation is key in the early stages of any business. By maintaining a client-centric approach and executing beyond expectations, a new brokerage firm is sure to gain market share through repeat business and referrals. – Adam Finkel, Tower Capital, LLC
6. Strategically Build An Inclusive, Forward-Thinking Team
Talent is key, especially in commercial real estate. Agents bringing in contacts is good, but solid, tech-savvy, problem-solving administrators and team-player brokers interested in the transaction, not the glory, are paramount. Make inclusive hiring of brokers a priority. Implement your tech with foresight. Remember that brand and company culture are the highest priority to millennials and Gen Z. – Kristin Geenty, The Geenty Group, Realtors
7. Empower Your Agents To Serve Clients
Agents are the product that shines front and center. To be successful, a brokerage needs to help each agent provide the best service to many clients. Agents offer their local market expertise and a personal connection to their clients. Time-saving mobile technology that allows agents to manage transactions in the field and creative commission structures that reward motivation will foster success. – Sumant Sridharan, HomeLight
8. Research And Analyze Your Options
Doing a lot of research and analysis is key. You want to evaluate the different franchise branches, explore being an independent broker and do a lot of market research. This is important because it will guide the path and direction you take your company, what needs you are going to meet in the marketplace, and what niche you are going to go after. – Bill Lyons, Griffin Funding
9. Build A Brand That Attracts Clients And Agents
Most new brokers are forced to hire agents quickly in order to tap into the new agents’ networks. This is problematic because this growth strategy is intrinsically linked to (and limited by) the headcount and size of each of the agent’s individual networks. A better strategy is to build a sustainable and dynamic brand, making it easier to attract clients and therefore easier to recruit agents. – Fred McGill, SimpleShowing
10. Get Your Ducks In A Row Before Opening
Carefully prepare everything before you open for business from your website to marketing collateral to informing clients and securing new listings. These items should all be ready for the launch of your new company. It is important because it sets the impression, reputation and tone for your new company. – Lee Kiser, Kiser Group
11. Be Willing To Make Sacrifices
Starting a true brokerage firm requires huge capital and time commitment and is never a good strategy to save on “splitting with the house.” For the first few years, you may not even get to bring home any of your own commissions and, at the same time, you will have less time to do deals. You have to truly want to run a business and be willing to sacrifice. – Bethany Babcock, Foresite Commercial Real Estate