You’ve worked hard to establish yourself as a real estate agent. But as exciting as it can be, working for yourself can prove to be a real challenge! The way to find success in this industry to think like a business owner, and treat your real estate business as you would treat your own small business.
NAR has some interesting business-related statistics on real estate agents:
- 86% of real estate agents are independent contractors. This means that by all definition, legally and tax-wise, you’re a business owner and will be treated as such.
- The typical Realtor has 10 years of experience and works 40 hours per week but earns only $39,200 annually. That’s not a lot to show for a full-time job if you aren’t fully invested with a business owner mentality.
- The average agent closes only 11 transactions per year.
Real estate is no easy industry! If you want to make your way to the top and reach the goals that attracted you to this industry in the first place, you need to start thinking like a business owner. Where do you start?
Here’s 3 Ways to Act Like a Business Owner as a Real Estate Agent
1. Invest time in online education
The internet is an endless resource for free, useful information if you know where to start your search. Consider starting with the Small Business Administration’s website – many freelancers get their start here. Pick a couple topics per day that you want to learn more about, and focus your time taking notes, checking sources, and finding online courses that help you
2. Keep detailed records
Keeping detailed records is critical to being an efficient business owner. You never know what records you might need to correctly file taxes, identify trends in your income or expenses, or figure out how to adjust what you’re doing to be more efficient. Electronically recording your every move with software such as Quickbooks is a great way to start, and a great way to be prepared for anything. Especially as you begin to work with other real estate agents, keeping detailed records is a part of any successful business owner’s routine.
3. “Stress-test” your business
There’s a saying, “An ounce of prevention is worth a pound of cure.” Running your business through every possible hypothetical situation can help you find the holes in your business plan and future-proof your tactics. For example, what would happen if the market crashed locally? Or you fell sick and needed time to recover? Outlining your business vulnerabilities is a great step to acting like a true business owner. You don’t want to be caught off guard by circumstances out of your control.
As a small business owner, you must think differently. Self-employment comes with temptations to make poor personal decisions around time management, profit spending, or even hiring/working with family and friends. If you keep a level head and treat all decisions as a business owner would, you’re setting yourself up for success in an ever-competitive industry.
Need more help getting started?
Check out our 2019 business strategy plan for real estate agents.