Growing a Real Estate business? How to identify 3 monumental growth mistakes
After establishing your real estate business and once you’re generating profits, what’s the next thing business owners like to focus on? What’s the next challenge they choose to sink their teeth into? It’s usually growth!
For the majority of entrepreneurs and small business owners, scaling the business is the next milestone they aim for. The very fact you made the decision to establish your own company and succeeded, means you’re an individual of vision and ambition.
The simple fact that you’ve achieved your goal of owning a successful real estate business implies that you’re willing to work hard and take risks. Therefore, it’s natural that you would feel drawn to grow the business even further. Knowing that if you were to achieve this, that market dominance may become order of the day.
You decide to strike while the iron is hot; however, once growth is experienced, there are signs you need to keep watch for, that will identify if you’re growing too fast.
Growing too fast can be just as damaging to your business, as no growth at all.
There is a fine balance to be struck between healthy growth and that of maintaining a solid business foundation, as you grow and scale. It’s not wise to sacrifice one over the other.
More so than at any other time, business owners today desire rapid growth. We have a mindset whereby we need everything done as soon as possible, not understanding that impatience is one of the most common causes of financial disasters.
Like a lot of other things in life, company growth just takes time. Organic growth, plus some, is often best and patience is required during this time!
Are you currently in the process of growing and upscaling your Real Estate business? If so, keep watch for these signs you’re growing too fast.
Operational inefficiency
Growth in proportion to your systems, policies, procedures and personnel is key.
Have you noticed that you’re growing faster than you anticipated? If so, there’s a chance you may be facing operational inefficiencies.
Are you finding it difficult to keep up with demand and with the daily operational functions of the business? When this occurs, I’ve seen business owners become compromised and forced to improvise.
Temptation to cut corners creeps in, which in turn, can often result in the quality and delivery output of products and services, becoming less than average, to say the least. You may be forced to employ additional staff in a short period of time, which can result in poor choice of candidates, who are not sufficiently qualified or suited to the job role. This is an ever-present concern and mistake to avoid.
Do you find yourself in a position where you don’t have the necessary time to redesign your systems, processes, procedures and workflow to adequately accommodate your growth? If you answered yes, then you’re experiencing one of the key signs of operational inefficiency. These inefficiencies are merely a disaster waiting to happen.
Customer service is not scaling with your business
When your business is small, it is easy to build your reputation based upon excellent customer service.
Sadly, one of the most visible and telling signs for real estate business owners when they are experiencing rapid growth, is that their customer service doesn’t scale together in sync with their growth.
This results in a rise in customer complaints and can lead to a tarnished reputation, in next to no time. An outstanding reputation will often take years to build but can be destroyed in an instant.
Therefore, when thinking about growing your organisation, your customer service should be a key consideration you factor in, just as you would upskilling and upscaling your property management and sales and marketing teams to ensure they are ready to handle the expected growth.
Cashflow is becoming tight and your funding is drying up
Have you experienced this personally, as part of your growth process? This can often be one of the final consideration’s entrepreneurs and real estate business owners pay attention too and commonly only when the money starts to dry up.
There is a definite cost to upscaling and growth in every business and instead of being last, it should be the first thing you consider when growth is on your horizon.
We hope this article has assisted you in identifying 3 monumental growth mistakes, when growing a Real Estate business.
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Did you know that Real Estate Coaching Hub offers Real Estate Consulting services?
If you are considering growing your business or organisation and would like some assistance, then please reach out to our resident Real Estate Growth Consultant, Darren Giles.
