So many broker/owners across America have spent the better part of their working careers building and managing thriving brokerage businesses. They have invested the proverbial blood, sweat and tears, and managed through the highs and lows of real estate market cycles. They built great careers, increased their net worth and made very good livings for their families.
Now comes the moment when it’s time to pass this business to the next generation—their children. All too frequently, however, there is one big problem: The earlier generation’s brokerage business model, well-built and run as it was, is not the brokerage model that will thrive or even survive into the future.
Three key indicators will help you determine whether the business is a monument to the past or a real driver of future success. Net agent count, top-line revenue and bottom-line growth or decline over the past three to five years need to be examined. If the business is experiencing a declining ability to recruit new and experienced agents, declining agent retention and/or has declining top or bottom lines, the company’s business model probably needs to be upgraded.
There are too many great broker/owners who could very well be passing on a declining asset—or worse yet, saddling their children with a burdensome business that will fill their days with financial challenges and the stress that comes along with it.
It takes a no-excuse-making, no-rationalizing, courageous assessment with the help of an unbiased expert to provide the straight talk necessary to get a clear picture of what is happening and why.
It is vitally important to get good counsel on how your brokerage can be upgraded to an operational model that works today and into the future. Passing on a business that creates an attractive and engaging culture, resonates with what today’s agents truly want and need, and simultaneously fuels growth and net earnings is an incredible legacy for the next generation of broker/owners.
Transforming your brokerage can happen through joining the right brokerage support network, partnering with existing new-model companies or even merging your company with another. It all starts with a quick and deliberate assessment and plan of action to enhance your operation and truly pass on a great legacy and company that grants the next generation of owners the very best chance for success.
Rick Haase is president of United Real Estate. For more information, contact Haase at Rick@UnitedRealEstate.com or 504-251-3757, or visit www.GrowWithUnited.com.