Tag Archives: independent real estate business

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Industry experts reveal the hidden costs of establishing your own brand

While having your name over the door can be an enticing prospect, three industry experts say many principals underestimate the financial and emotional costs of establishing a brand. 

And, as it takes time and energy from the core business, principals should consider all their options before striking out on their own. 

Why principals are jumping ship 

Over the past few decades, the franchise model had come to dominate the Australian real estate industry. Many principals joined the big groups lured by the brand recognition and support that came with a long-established name. 

Then the internet changed the rules of the game. As a result, more principals question the franchise system, and look into going it alone. 

After all, nobody wants to pay commissions to head office and surrender a lot of control if they get little perceived value in return. 

Starting from scratch 

Nic Fren, former Real Estate agent and now, founder of Bespoke Media Group, outlined some of the initial expenses principals face building a brand from the ground up. 

“A branding kit complete with logo and colour palettes is between $10,000 and $15,000 to create,” he said. 

“A good website costs a minimum of $5,000. On top of this, comes flags, A-frames, signage, shop front and the like – so it’s easy to see how it soon stacks up.”

All these costs need to be paid before your business turns a dollar. Then it takes at least six months to discover if you are going to get a return on this investment.

And while choosing logos and fonts might be exciting at first, it eats up valuable time and headspace that should be spent winning new clients. 

“The last thing you want to do as a business owner is worry about how your newsletter templates look.”

Time is money 

Tristin Hanna, co-founder of brand and design consultancy Thursday Design, said a brand roll-out can take up to a year to complete, once all touch-points are considered.  It therefore requires a commitment to both time and budget to be delivered effectively.

Lindy Harris Photo
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How to move past your fear and become a principal

Five years ago, I was where you are now. Nervous and fearful about making the step up to principal, even though I had 15 years of being a successful agent under my belt.

But, at nearly 50 years old, this was my ‘now or never’ moment – and I didn’t want to live a life full of regret. So I gathered my courage and leapt.

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The biggest lesson I’ve learned from this crisis

For a moment, I want you to imagine it’s 2019 – back when none of us had heard the term ‘coronavirus’.

It was a golden time, right? Well, no, it wasn’t, it was a tough year for many. My group, One Agency, has more than 150 licensees across Australasia, and when I visited our principals and agents, I saw just how many of them were operating in tough real estate markets.

Some, though, were thriving. Why? Because they’d built businesses designed not for summer but winter.

Fast forward 12 months and those principals and agents are still doing well, despite COVID.

That leads on to the biggest lesson I’ve learned from this crisis: you can never predict what will happen to your local market or the wider economy. So you need to build a business that can do well in any environment. How? By doing these three things:

  • Protect your revenue
  • Minimise your costs
  • Master your mindset

How to protect your revenue

Sales revenue is unpredictable, because you have no control over whether your local market goes up, down or sideways.

Property management revenue, though, is largely predictable, because rents are much less volatile than sales prices and volumes. That’s why every agency with a rent roll is safer.

Big or small, even one-person agencies can build rent rolls – you just outsource the different property management functions to freelance staff. One Agency has businesses of every size, including several solo operators, who do sales while managing more than 50 properties.

How to reduce your costs

You have limited control over your revenue, but you have complete control over your costs.

Remember: it’s not what you make, it’s what you keep that counts. That’s why you need to minimise your fixed costs and take a close look at your variable costs. Some ideas include:

  • Move from expensive main street premises to a cheaper, less visible office, or virtual office – these days, a strong digital presence is much more important than a strong physical presence
  • Send some tasks offshore – outsourcing will not only save you money, it will also make it easier for you to scale up and down when your revenue rises and falls
  • Refinance your debts – interest rates are at record lows, so you could potentially save thousands of dollars per year by investigating current lower-rate loans
  • Hold your group accountable – if you work with a branded group, research the market to see if you can find a group that will give you the same service for lower fees, as there is no such thing as a best brand, only a best operator

How to master your mindset

During my decades in real estate, I’ve learned that the market always turns – for better and worse.

You need to build a mindset that can handle these ups and downs. You can’t allow your mood to go up and down in tandem with the market, because that’s not sustainable.

When the market is booming, you need to remain level-headed; when the market is tanking, you need to remain optimistic.

Have a plan, work the plan and reset as necessary. A strategy with a goal keeps you focused.

So work hard on yourself. Hang out with positive people. Read personal development books. Take care of your physical and mental health. If you’re feeling down, don’t be afraid to ask for help.

Andrew Reeves
Blog, Uncategorized

Your 5-step guide to transitioning from agent to principal

Do you want to step up from agent to business owner? If so, let me explain exactly how to do it. The process is simple, although it does require a lot of hard work and sacrifices.

By way of background, I started my business in 2013; four years later, it was named One Agency International Office of the Year. By the time I sold my business in 2020, it had two offices, 20 staff, 420 properties under management and annual GCI of $3 million. So the five-step process I’m about to share really does work.

First, you need at least five years of industry experience, so you understand the ins and outs of real estate. I had 14 years of experience when I opened my business, although, in hindsight, I realise I could’ve made the jump years earlier.

Second, you need to take advice from those who have been there and done that. An obvious way to do that is to join a group. I think I would’ve been successful if I’d gone out as an independent, but it would’ve been harder and taken longer. By joining a group, I was given all the back-end support I needed, which allowed me to focus on growing my business and maximising my profits. Another thing I did was seek outside support – I used a business coach and a property management consultant to become a better principal.

Third, you need to focus on building a rent roll. A rent roll is the foundation of your business. It gives you consistent income, which allows you to get through different kinds of markets. If you build a rent roll, you’ve always got a saleable asset. It also helps you in your local market, because it means more signs, more marketing and more exposure, which allows you to grow your brand. Whenever you sell a property to an investor, try to turn that buyer into a property management client.

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 I chose One Agency was because I didn’t have to pay commissions to head office.) Also, defend your income by building a rent roll.

Fifth, you need to see relationships as a form of currency. Our game 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.

Real Estate Market
Real Estate Coaching, Real Estate Training

Real Estate Sales – How Proactive Are You?

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The first quarter of the year has passed. How is it working out? Are you in flow?

Perhaps start by being totally proactive in the mornings . You see you can get 90 percent or more of your work done in the morning its called the Profit Zone!

How do you do this? Here some tips to make your mornings totally productive: 

First, I’m defining work as stuff that you do, important stuff. Ideally, meetings can be shoved out of the picture. 

Second, this approach is built on the Pareto principle. The Pareto principle states that 80 percent of your results come from 20 percent of your efforts. Getting your work done in the morning means that you can take a leaner approach to the important tasks–a smart approach.

1. Schedule your day the night before.
Every day, you should list all your tasks and when you’re going to do them the following day. You will not be productive unless you plan out everything you’re going to do the next morning.

Quick tip: Don’t schedule too much. Keep it simple such as going to smash 30 calls (old OFI books or past clients).

2. Clean your office the night before.
Clutter in your office creates distractions. A sticky note on your desk that says “Call Bob ASAP!” can throw off your whole day.

Showing up to work in a spic-and-span environment helps you to think clearer and work harder.

3. Wake up at an ungodly hour.
To really get stuff done, you’ve got to get up in time to make it happen.

I recommend anytime from 5:30 to 6:30 a.m. If your morning routine takes a little longer, bump your wake-up time back a little more.

Obviously, you’ll need to adjust your bedtime accordingly.

4. Exercise.
Scientific evidence shows that morning exercise can make us think better, work better, and become more productive.

I read a book from Harvard’s John Ratey – Spark: The Revolutionary New Science of Exercise and the Brain. He writes that exercise is essential for reaching “high-performance levels in intellectually demanding jobs.” Ps. Real Estate

A quick run or 30-minute yoga session in the morning can prepare you for a powerful session of getting stuff done.

5. Stick to your schedule.
Don’t let yourself get off the course that you’ve mapped out. You have a limited amount of time. Don’t ruin the schedule.

Take your schedule, allow it guide you, and you’ll be able to accomplish more.

6. Give yourself 20 minutes to reach flow.
Flow is when you’re in the zone. This happens when you are completely absorbed in your activity, single mindedly accomplishing things at a high level and rapid pace.

It takes some time to reach flow, so if you don’t feel productive or engaged in your work, just give it some time.

Real Estate Business Trevor Leslie
Real Estate Business

Independent Real Estate Business Expands With One Agency

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Trevor Leslie made the move from Independent and opened One Agency Trevor Leslie Group in August 2015.

Their real estate business covers Baulkham Hills, Northmead, Winston Hills and North Rocks in Sydney, NSW.

“We knew we couldn’t survive as an independent real estate agency and so interviewed several franchise proposals. We were searching for something dynamic. That is where One Agency has the edge, they are fresh in the market, the branding is amazing and we wanted to work with the offices around us,” says Trevor, who started his real estate career in 1982.

“Our decision has been proven to be correct. One Agency has produced for us the opportunity to compete against all the other agencies and win on the majority listings.”

They had traded since 2003 as an Independent Real Estate Business under the name Trevor Leslie Real Estate and wanted to take the company to the next level.

“We looked at several other options and One Agency stood out as the new direction for us. We had spoken to several other franchise groups and they were extremely difficult to deal with. Paul Davies and John Stewart offered what we were seeking, the agreement was fair therefore it was an easy decision. Head Office don’t take our money and spend it on unnecessary expensive promotions. ” 

Trevor reports that the set up with One Agency was delightful, and they were able to complete the paperwork, set up the business model and use the simple branding guidelines to have their office refitted.

“It was the easiest move, Head Office are so well organised,” he says. “They are like family, always there when you need them, you really couldn’t ask for more and I am so grateful for their support.”