The business environment the real estate industry has found itself in since March 2020 is one that has never been experienced before, presenting both dramatic and immediate impact on the economy, our businesses, and our lives. It’s required immediate change and a creative mindset with how business is done; which, for those who have embraced both, has led to strong gains.
And, while the state of the real estate market has outpaced initial predictions, it’s always important to maintain the same level of preparedness and ability to do more with less – a key tactic in SHIFT, written by Gary Keller and Jay Papasan.
“The strong sales we’re seeing right now are unlikely to continue at this level over the long term, so there will be a market adjustment,” shares Jim Talbot, KW Director of Research. “Granted moving from a ‘blazing-hot market’ to a merely ‘hot market’ may not be too wrenching, but it’s still an adjustment, and anyone who makes plans based on sales continuing at this level (e.g., in hiring buyer agents or leasing team space) may have difficulties.”
To help you stay one step ahead, we’ve outlined SHIFT Tactic #3 below. Familiarizing yourself with it now will help ensure success in the future.
When The Market Turns
As Gary Keller writes in SHIFT, “When the market turns, it is time to roll up your sleeves and for everyone around you to do the same.”
The idea is to ensure the systems and people you employ in your business can be as effective and as efficient as possible.
In good times, your people and systems may meet your expectations more easily. But because business comes more easily, you don’t necessarily see underlying issues or cracks in the armor. During a shifted market, on the other hand, inefficiencies tend to rise to the surface. This is where Tactic #3 comes into effect. When we make a commitment to do more with less, we recognize that today is more of an opportunity for our business than a hardship because it enables us to make positive changes we wouldn’t otherwise have felt the need to implement. You’ll start by taking a deeper look at what’s working and what could be better in your business. With that knowledge in hand, you can then top-grade your business.
Start with Your Priorities
First, you’ll need to ask yourself what your business priorities are or:
What are the key things that need to get done in order for my business to succeed?
As Keller explains, your business encompasses six core competencies. These are the things your business must do well in order to thrive in any business environment, especially a shifted one, where real estate transactions are harder to come by:
- Lead generate, capture, and convert to appointments
- Present to buyers and sellers and get agreements
- Show buyers and market sellers
- Write and negotiate contracts
- Coordinate the sale to closing
- Manage the money
Go through each competency and lay out how your business will address each moving forward. Once you create an initial plan, present it to your team. These aren’t just your priorities, but your vision for success. It may look a little different in a new market, and that’s OK.
Before You Approach the Team
Before you rush to approach your team with a vision of how you’ll approach a shifted market, and their place in it:
- Look inward. As Keller shared in Tactic #1: Get Real, Get Right, “the role you play in your business is critical. Are you doing what matters? Are you doing what matters most? Once you are clear about how your personal efforts are getting more of the important things done cost-effectively, the focus shifts to others in your business.”
- Do the math and have a complete understanding of your needs. Ask yourself what needs to be accomplished and how much money/resources you have to pay for it.
- After you’ve evaluated what you can part with if things were to change, it’s time to approach your team and build a plan to bulletproof your business.
Ask your team to recommit to the vision of where you see your business going. Change is hard for everyone. But by being honest about where your business currently is, where you want it to be, and how it will need to evolve to prepare for a shift, you’ll be able to gauge the support of those around you.
As you enter a shift, you may find that some people will be willing to do whatever it takes to support your business and others’ priorities may not be in alignment with your new vision. This is OK too. It’s an important step because the people who will help your business excel through the shift are those who will rally behind you for the long haul. Once you determine who the right people are, you can re-evaluate their job descriptions to fit your current priorities. Remember, during a shift, there isn’t room in your organization for those that may be working against your goals.
Review Current Systems
Once you have your people in place, you’ll need to take a hard look at the systems you currently use. Are your systems cost-efficient while using the least amount of effort for the greatest amount of efficiency? If not, it’s time to reassess and streamline everything. This is a practice you can start now! If you’re a Keller Williams agent, leverage Command. The operating system can help you take deals from lead to close at less cost and effort. Complexity doesn’t have a place in a shifted market. It’s time to simplify your tasks down to the basics and get things done in the easiest and most efficient way.
It’s up to you, your people, and your systems to address your business’s priorities with the least amount of resources. Remember, this current environment is a chance to get back to the basics and ensure you – and your people – are focusing only on these things. Do more with less around these key areas of your business. Nothing else matters.