9 Lessons For Those In The Real Estate Business
When I was in a mastermind meeting with real estate entrepreneurs not long ago, I asked the question:
What lessons have you learned from the real estate market bubble-burst and this recession?
I was stunned to learn that many real estate agents haven't taken any lessons from this mess. I, myself, have learned many. In fact, I am keeping a little notebook in which I record the new lessons I am taught -- which is almost daily. I am hoping to keep this little notebook handy for the next recession we go through, whenever that time comes around.
I thought I'd share with you some business lessons I have learned.
1. Credit lines WILL disappear. This includes business and personal credit lines. My lender froze my home equity loan. I'm sure your lender did too. The BIG lesson here is to build large cash reserves. Don't think that your credit lines will be available when you need them. They won't. Or borrow from your credit lines early and put the money in a savings account and make the interest payments.
2. Obtaining new credit will be tough. Your credit score doesn't matter much when nobody is lending money. See above.
3. Business opportunities change quickly. You must be proactive and spotting and adapting to these changes. What are larger businesses doing to adapt? Copy their strategies within your business.Where is the money in your marketplace. Pay attention. Follow the money. Be decisive. Change quickly.
4. Clients have been and will be jittery about buying and selling. Comprehend this shift in their thinking. Adapt your communication with clients accordingly.
5. Keep your business's overhead as low as possible. It can take you down very quickly. Don't move into that large office space just because it seems like a bargain. Don't take on too many new employees right now. And certainly don't take on large fixed expenses. Keep your expenses variable; that way, you can reduce them quickly if you must.
6. Improve your customer service RIGHT NOW. When the market was peaking, we let our customer service slip because it didn't matter too much. This was a big mistake, and now we must go above and beyond for our customers. We cannot give them any excuse or reason to take their business somewhere else.
7. Seek ways to offer lower-priced goods or services. When money is tight, price becomes a bigger consideration to your clients. Be prepared to adjust your pricing so that they have no reason to go elsewhere.
8. You have to have multiple income streams in place. When times are good, prepare for leaner times by creating multiple income streams. Diversify, so that losing one source of income doesn't mean disaster. Multiple sources of income are like life rafts on a big ship; they can save you from drowning.
9. Cash gives you the power to lock in massive wealth. You've heard the saying - "Cash is King", right? It's true. Had you built a huge amount of cash while times were good, couldn't you be investing in great opportunities now that times are bad? Homes are being purchased for pennies on the dollar. Stocks are at rock-bottom prices. Buy when others are selling, and sell when others are buying.
I hope this will help you eliminate mis-steps in your business. This recession will likely continue to deliver important business lessons you. You will learn them, one way or the other, one time or another. Let's learn them the first time around!
About the Author:
Rob Minton, who reinvented his real estate sales business to sell 269 homes to a limited number of clients, has written a very practical book on how real estate agents can sell more homes For a limited time, you can download his entire book for free by visiting Renegade Millionaire Strategies for Real Estate Agents
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I will take this as a valuable lesson to help me eliminate mis-steps in my business. Because as I see it, this recession will likely continue to deliver important business lessons to all of usnd!
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