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10 Things to Keep in Mind When Starting a New Brokerage

10 Things to Keep in Mind

When Starting a New Brokerage


Contents01. Intro

02. Think Like a Business Owner

03. Mix Business and Pleasure

04. Consider Security

05. Don’t Confuse Busy for Productive

06. Raise Your Hand

07. Measure and Adapt

08. Have a Plan

09. Consider Bench Strength

10. Differentiate Yourself

11. Provide an Unmatched Agent Experience

12. Summing It Up

13. Sources

Index


IntroCongratulations! You finally did it – you’ve started your own brokerage. Now that the formalities are out of the way, it’s time to focus your energy on running the most successful brokerage possible. But where do you start?

This eBook will help you navigate the new territory and shift your focus from real estate professional to business owner. With a team made up of real estate professionals, past and present, and nearly 30 years in the real estate technology space, we understand what it takes to become a market leader.

At Lone Wolf, we’ve worked with all shapes and sizes of businesses, from start-ups to mega-brokerages, in every possible market condition. We’ve listened and worked alongside brokers just like you and learned what is needed to be successful in your first year and how technology plays a part.

Here’s what we’ve learned.

10 Things to Keep in Mind When Starting a New Brokerage 1


1 Think Like a Business OwnerYou are a real estate professional – there is

no questioning your expertise in that area.

But now you wear a different hat. As a Broker/

Owner, your role is no longer just about selling

real estate: you have a business to run. It is

important to remember that success in real estate

and success as a Broker/Owner may require a

different skill set. It will definitely require a shift in

perspective. As a business owner, your brokerage’s

profitability should always remain top of mind. You

must consider more than just your independent

commission split now and should constantly

operate with the question of ‘how will this affect

my bottom line?’ in mind.

2


Mix Business and PleasureYou may already know this from your days as an agent but it is especially important now. As a Broker/Owner you’ll be busy. Busier than you were before. Remember, you’re wearing two hats now but that doesn’t change the fact that you still have a network to build and a business to sustain. A great way to balance your new role is to break the rules and mix business and pleasure. You never know if your next best agent will come in line at the grocery store, at your child’s school play, or at the launch of your friend’s new restaurant. Make the most out of your time by recognizing business opportunities in your everyday interactions – in your new role, your business hat will never come off.


We’re all given the same number of hours in a day, some people just use them better.

“ “

– Unknown

2


3 Consider SecurityWe see it more often than we would like –

Broker/Owners getting taken advantage of.

This is especially true for new Broker/Owners.

To avoid this unnecessary headache, ensure

you have the proper infrastructure in place that

provides a safe place for your data and financial

security. You’ll need a back office solution that

manages and tracks all of your brokerage’s

operations. Not only will this give you peace of

mind, it will keep your head from spinning when

it comes time for an audit.

4


Don’t Confuse Busy for ProductiveDeciding exactly where to focus your energy can be difficult – picking tasks that directly affect your bottom-line are important to avoid falling into the busywork trap. A great way to do this is to run key performance reports daily, weekly and monthly. You should be keeping a close eye on agent production, your brokerage’s break-even points, your agents’ commission cutting habits and what your competition has been up to.

Hint: All of these reports are easily accessible in brokerWOLF, Lone Wolf’s back office solution.


People who admit to wasting over 30 min every work day.89%

Report wasting 1 hour daily.31%

Report wasting 2 hours daily.16%

Report wasting over 3 hours daily.10%

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http://www.lwolf.com/brokerwolf?WC-10Things-Brokerage-ebook-bw-link-111416


5 Raise Your HandNo one said this would be easy. Well, maybe you

did but this is uncharted territory. If you haven’t

picked up on it yet, running a brokerage is a lot

different than working in a brokerage. Navigating

this new role can be challenging and you will most

definitely have questions. Don’t be afraid to raise

your hand. Better yet, find a mentor that you

can lean on. As a time saver, pick a few of your

favourite blogs and publications to follow. These

will provide you with quick tips and tricks that

are easy to digest and that you can apply to your

brokerage right away.

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http://blog.lwolf.com?WC-10Things-Brokerage-ebook-blog-link-111416


Measure and AdaptIn any brokerage, there will be things that go wrong and things that go right. In your brokerage, it is your job to identify what works and what doesn’t. Implementing the proper tools *ahem brokerWOLF* to track your business operations will help you get a handle on your business. It’s important to keep in mind that what works for one brokerage won’t always work for another.


It is not the strongest species that survive, nor the most intelligent, but the most responsive to change.

“ “

– Charles Darwin

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7Have a PlanFrom day one, you need a plan. It’s not just

about selling properties anymore. How will

you make money? What splits will you offer?

In order to run a successful brokerage, it’s

important that you have these answers from

day one. This Field Guide by NAR is a great

place to get started.

8

http://www.realtor.org/field-guides/field-guide-to-opening-a-real-estate-brokerage


Consider Bench StrengthYou’re an expert but you don’t know everything; accepting this will be one of the greatest things you do for your brokerage. There are a lot of moving pieces to your brokerage and you alone won’t be able to keep them all straight. Build a team of people who complement your skill set, fill the gaps and are placed for succession. Outside of recruiting the right agents, you’ll want to make sure you have a strong administrator – they’ll quickly become your new best friend.


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Ensure your new best friend is an industry insider who understands the trends, terminology and technology associated with the real estate industry.

A TIP TO GET STARTED:


9 Differentiate YourselfIf you wanted to be like every other Broker/Owner

out there, you probably wouldn’t have opened up

your own brokerage. To differentiate yourself from

the competition you need to create a memorable

brand and a unique experience. Once you’ve created

a brand, you have to stick with it. It needs to come

across in everything you do. Not only will brand

awareness help you recruit agents, it will attract

clients as well.

10


Provide an Unmatched Agent ExperienceAgents are your lifeline, you need them for survival. After you have your plan in place, your next step and where you should focus the majority of your energy, is on agent recruitment and retention. Create an experience that attracts the type of agents that you want representing your brand - you need to provide an experience they can’t afford to leave. What will make them stay? Great splits? Reasonable desk fees? Marketing and technology resources? Recognition? Ultimately, the design of your unique brokerage is up to you but remember, your agents are your greatest asset and you’ll need work to ensure they stay with you.


32% 45% 28%

of agents said better technology at another brokerage would prompt them to leave their existing brokerage.

of agents would like their broker to expand the amount of technology they offer.

of agents said their brokerage technology was exceptional.

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Summing It UpStarting a real estate brokerage is challenging and there is a lot to consider. It

requires a shift in perspective. By keeping an open mind and investing in the right

tools, you can turn your new real estate brokerage into a profitable and sustainable

business in no time.

We are Lone Wolf Technologies.

Lone Wolf is the leading provider of residential real estate software in North

America. According to REAL Trends, 56% of the Top 200 US Brokerages use Lone

Wolf for their back office accounting solution. This is because we understand the

real estate industry like no other and have designed our suite of solutions to meet

the needs of real estate brokers today. We provide tools for every stage of the

real estate transaction, ensuring real estate professionals are as productive and

profitable as possible.

Why wait? Start your brokerage off right from the beginning.

lwolf.com/getting-started >>

Keep Top of MindChecklist to help get started

□ Think Like a Business Owner

□ Mix Business and Pleasure

□ Consider Security

□ Don’t Confuse Busy for

Productive

□ Raise Your Hand

□ Measure and Adapt

□ Have a Plan

□ Consider Bench Strength

□ Differentiate Yourself

□ Provide an Unmatched Agent

Experience

http://www.lwolf.com/getting-started

SOURCES

1 - https://www.crossover.com/productivity 2 - http://www.realtor.org/reports/2013-14-realtor-technology-survey

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