Should You Grow A Team Or Stay Solo?
In 2004 I grew a team. In 2014 I stayed solo. But which was right?
The year was 2004 and we had just opened the doors to our first real estate business. A little independent on the corner of Tank and Goondoon Streets in Gladstone Queensland, led by myself as Principal Licensee and my fiancé at the time - a carpenter turned builder with zero real estate experience.
We would later discover that this address had in fact been tainted - with the last 2 businesses failing in that very location. It never entered my naive, 23 year old mind that we could make it the trifecta.
But alas, we didn’t. We were the success story.
Let the hiring begin.
It wasn’t long before we hired our first staff member. Sonya.
Sonya had recently moved to the area with her husband who was contracted to work at the local smelter and she was looking for something to fill her time and provide a renewed sense of purpose and challenge. So why not try real estate?
In the next few years we would hire and fire a head count of more than 30 staff members. I remember calculating it one evening over dinner and being shocked that more than 30 souls had come and gone through our doors!
They were a mix of sales people, administration staff and property managers.
From all walks. All backgrounds. All personalities - and some with multiple personalities!
The office drama was typical of most agencies and I would often question why I ever wanted to swap out a life of unencumbered travel in my 20’s for one that looked more like a 40 year old’s. Some days it felt like I was playing a 25 year old mother to 50 year olds and I would fantasize what my life would be like if I’d taken the road that most twenty-somethings take - free and easy. No mortgage, no office lease. No staff.
Needless to say, being the boss was both demanding and draining.
But onwards I went.
6 staff and counting.
At the peak of our business, when the local market had literally boomed overnight and the price of houses went from $100,000 to over $200,000 in the space of 24 hours, we had a total of 6 staff, outside of ourselves as the business owners.
Looking back, I wish I’d never hired any of them. Except one. Jess. My PA. She was brilliant and to this day would hands down be the best hire of my entire career.
So why the regret on hiring?
Do you want money or the status of a big office?
Back then, my goal was to make as much money as possible to set ourselves up financially. I later realised we didn’t need to build a big office to do this. In fact, the easier road would have been to stay as a smaller team and minimise our operating expenses.
When I sat down and crunched the numbers, I realised we could have made more money by just having a small sales team of two (myself and my fiancé) plus an administrator / personal assistant - Jess. And a full time property manager to run the rent roll.
If we’d kept the overheads of the office low, leased a cheaper office space and ran the office lean and mean, our financial position would have looked even better, and without all the emotional drama that more human beings bring.
The lesson.
But here’s the thing I’ve come to learn about running a real estate business.
You need to pick a lane.
Stay small or go big. There’s no in between if you want to be profitable.
For me, I should have always stayed small, and this is why I do so today.
Growing a team and a large agency is not for the faint hearted and if this is the lane you’re choosing, here’s my advice.
Have a large financial backing before you start. You’ll need a healthy line of credit to balance out the ebbs and flows of running a business of size.
Staff will come and go. The team will never be perfect and that’s ok and typical for a growing real estate office. This industry is notorious for having one of the fastest turnover rates when it comes to staffing so if you can embrace this and have a solid recruitment plan, you’ll be steps ahead.
If the market turns, re-assess your team fast. Agencies that hold onto too many administration staff and underperforming sales people during a downturn often take a nasty financial hit. On the flip side, real estate businesses who want to grow during a boom but fail to hire fast enough end up with a team that struggles to manage the workload. Deals slip through the cracks and money is left on the table. As the saying goes, you need to make hay while the sun shines in real estate.
If building a big real estate office is your jam, I truly wish you every success, and I’m certainly not saying you won’t make money, but if in your heart of hearts you know that being a small boutique is your lane, I can resonate.
For us boutique agents, here’s what I’ve learned makes you thrive in this space.
You identify as more of a lone ranger than a team player. (This is me.)
Your true passion lies in doing the deals and working on the front line as a selling agent or buyer’s agent, rather than managing a team of people.
Your goal is to create a lifestyle business that gives you flexibility.
Quality over quantity is your mantra. You’re all about attention to detail and personalised service.
Whether you’re building a big business or staying small and boutique, always keep in mind the real estate space is ultra competitive and what works for some doesn’t work for others.
Over the years, I’ve found that following my intuition, staying in my lane and remaining true to my values has guided my success and kept me in this game for longer than I ever imagined. Oh, and I’ve made a tonne of money in the process.
If you’re curious to learn how I run my Buyer’s Agency business, you’ll find everything in my Buyer’s Agent Blueprint.
MEET THE WRITER
Hi, I’m Wendy.
I’m a storytelling writer, champagne lover and Luxury Buyer’s Agent based in Brisbane Australia. I share my journey as an independent real estate professional and self-made career woman. MY STORY
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