Success in Business…it’s Simple

Simple, huh? Yes. Let me clarify…it’s simple, but not easy. It’s a lot of hard work. Most of the rich in the US are first-generation rich. And the vast majority of them made their money by building a business and/or with real estate. It seems as Realtors, we’re in a pretty good business! But success is not automatic is it? And as we all know, most businesses started by inexperienced people fail. So what I really want to know is…are you experienced?

We’ve all heard the stats…99% of businesses fail within the first 5 years. This includes everybody…experienced and inexperienced. What nobody talks about is that experienced business people’s businesses usually succeed. That’s right. If you actually know what you’re doing, you will usually do well. Now who would have imagined that? It’s just worth mentioning because I hear the 99% failure stat way more often…it makes it seem like success in business is more about luck or some pat on the back from the success-in-business gods. It’s not. Success is simple…it has everything to do with skill, and skill can be acquired.

The Bottom Line on Failure
Here it is…businesses fail because they failed to plan for success. Most people get into business because they had an idea for a product or service, and the thought process stopped there. Many Realtors are the same. You have a reason that you got into real estate. Maybe it was out of convenience, maybe it was because you actually like property. Maybe you wanted to make some cash on the side. What I’m getting at is this: business is business, and if you’re not running your business like a business, then you’re on your way out of business. Maybe not today or tomorrow, but you’re on borrowed time. And maybe you’re cool with that. But if you’re not cool with that, then you need to get experienced.

The Bottom Line on Success
80 percent of businesses started by experienced businesspeople succeed. Do you want a piece of that? There’s still risk, but 80% success rate sure beats the other side of the coin doesn’t it? Why is it like this? Shouldn’t good ideas be enough? Shouldn’t hard work pay off in the end? Sure. I hope that works out for you. At the end of the day, many successful businesses are built on lousy ideas. Stupid ideas in fact. Ever heard of the pet rock? What a stupid idea. I mean, who needs that? What about all the junk food and super low quality junk products out there? Junk. But a good business plan, clever marketing and shrewd purchasing negotiations can lead even bad products into the marketplace in such a way that the owners make millions. Am I advocating the production of more junk into our marketplace? Not at all. I’m illustrating the bottom line of success in business. It has everything to do with a solid plan. Good ideas and hard work are trumped. Realtors are a dime a dozen in many markets. What do you do to differentiate yourself? A real business plan executed expertly will put you head and shoulders above the competition. And on the other side of that coin…even if you’re the most knowledgeable and skilled Realtor in town, success is not automatic. You WILL lose deals all the time to less experienced and lower quality professionals. An expertly written and executed business plan will change that forever.

Education counts
When you decide you want your business to turn around, when you decide you want to be in real estate for years to come and that you want to make good money doing what you’re doing, it’s time to hit the books. Realtors have so many resources at their disposal…resources we rarely take advantage of. Star Power and countless other professional networks will feed your brain and give you networking opportunities that will change your life. There are literally hundreds of thousands of books that will give you ideas and techniques you can immediately apply to your business to make all the difference. There are classes on top of classes you can attend right through realtor.org, right on your computer, to enhance your skills and improve your business. Education should never stop. We should all strive to triple or quadruple the amount of education that our state requires.

Money Matters
Businesses fail when they don’t properly manage their cash flow. Even strong businesses that make lots of money still fail when they don’t have proper cash flow management. If you don’t know the difference between profit, income and cash flow, you’re not running your business like a business, and you’re on borrowed time in real estate. It’s time to get educated and write a real business plan.

It’s a lot of pressure to be an agent and to look at your future in this manner. But being realistic about what direction you’re going is essential…if you want to stick around that is. And I want you to stick around! At the end of the day, real estate is a business, and it’s a lot of work to sell property while running a business. It’s the reason so many of us are building teams these days. The fact is that I cannot imagine running a successful business with no help. The concept is simply asinine in my eyes. As soon as you realize how much needs to be done in order to truly be efficient and helpful to your clients, I predict you’ll be at work building a team of your own. As soon as you start looking at your business as a business and not just one sale after another, a whole new world opens up to you. Maybe it’s not what you want to do, and that’s fine. But we can’t change what real estate is. It’s a business. Those of us who play it as such are positioned much better for truly taking advantage of the awesome opportunity that is the real estate business. I wish you success.