Did you know it’s illegal to scale Mt. Everest alone?
In 2017 the Nepalese government banned solo climbing the tallest mountain on Earth.
297 people have died scaling Everest. One shouldn’t try it alone. To climb the world’s highest peak, you need a team.
Business is no different.
Recently, I made the decision to scale my real estate brokerage. You know, grow.
Real estate, or any service business, is difficult to scale.
It’s been done the same way for years.
Get licensed. Grow a practice. Add an assistant. Get a brokers license. Add more agents. Help them do the same.
The problem? Retention.
According to studies, most agents fail in the first year and by the fifth year over 80% of new agents are out of the business.
Running a real estate practice is expensive. It’s a full fledged business that requires commitment.
Commitment of time and money.
Licensing, local board membership, multiple listing service, insurance, and continuing education is just the beginning. Fixed costs, regardless of your success.
Now you have to market your services. Business cards, signs, websites, brochures are just the beginning.
Once you procure a client you have to show up. Open houses, showings, meeting stagers, photographers, and before you know it you’ve invested real time and money yet still haven’t made a sale.
Finally, your client purchases a house so it’s payday, right?
Well, sort of. Closing is 45 days away!
You get the point.
Not only is it difficult to get agents through their first few years, but once they’ve established themselves, other brokerages take notice and begin to recruit them. Almost always these agents can find a broker who will charge less for their fees.
What’s a brokerage to do? What’s the secret to building a sustainable business? One that solves the retention problem?
Like a mountaineer who decides to tackle Everest, a business leader needs to tackle business problems with a team.
A team is stronger than an individual. You take talents from multiple people and apply them toward a common goal. Team is equivalent to leverage.
I could easily grow my business by recruiting, just like the others. But then I would have a company full of individuals, all pulling in their own direction. Ultimately, they will all find their own way.
What if they each had teammates?
These teammates leverage time, talent, and training.
How do you scale Everest?