2022 is right around the corner, which means business planning is in full swing. Many of the elements of annual planning are the same from year to year and typically revolve around setting goals and targets for your existing business to meet a certain revenue level. But as we approach 2022, I encourage you to broaden your scope and consider new initiatives that reflect larger trends we are seeing in the real estate industry. Here are three things coming into a sharper view for broker/owners in the coming year.
1. Don’t put all your eggs in one basket
Agent commission pressure is likely to continue. Brokerages must find ways to add more value to agents and tap more profit pools. Now is the time to diversify your lines of business beyond real estate brokerage services. Ancillary services such as mortgage, title, and property management are ways to enhance your business portfolio. When one division is underperforming, the other divisions can carry the company through the downturn. This is also an excellent strategy to keep more business in-house by providing a full-service experience for clients.
2. Win the war for talent
Investing in your agents translates to investing in your business. That means having a top-notch, proven training program is a win-win for you and your agents. You can create pull-through for your investment by offering coaching, which helps agents put that training into practice and sets up critical accountability measures to move the needle and ensure a return on your investment. Surround yourself with the right managers in place to foster productivity, remove obstacles to success and create a sense of loyalty.
3. Embrace diversity
If your office doesn’t match the demographics of your community, begin the work to change that now. Our nation is growing more and more diverse every day. By the time 2045 rolls around, the diverse populations are expected to be equal to, if not larger, than the non-Hispanic white population. I stress this not only as a sound business practice, but as a way to expand homeownership opportunities for underserved communities. There is a significant disparity in homeownership rates for Blacks, Hispanics, Asian-Americans and members of the LGBTQ+ community when compared to the non-Hispanic white population. Making homeownership more accessible to these groups in your market by having a diverse agent pool can go a long way in expanding customer segments for your business and strengthening the communities you serve.
Many of these approaches will take time to implement in your business, so this may not be a “one and done” exercise to accomplish in 2022. Start with small steps. They will go a long way to maximize big gains for the future.