Building and running a small real estate business is an exciting journey. It allows you to try out exciting projects and innovate within your chosen industry. On top of that, you get to help people solve their real estate problems with your product or service offering.
With that said, entrepreneurship is not all sunshine and rainbows. Throughout your journey, you will experience both highs and lows. You will also encounter pain points that can shake up the company you are building.
No small real estate business is immune to these challenges. Whether you like it or not, they will come and test you—maybe even make you struggle. The bright side is that there’s a way for you to emerge triumphant despite these pain points: by first recognizing them.
On that note, here are three of the most common small business pain points that you must be aware of:
1. Maintaining a Consistent Cash Flow
This is perhaps one of the hardest things a small business owner must do, especially during the early days of the venture. And cash flow in a real estate business is always related to deal flow!
It may be difficult, but you must see to it that your revenue covers your operating expenses as well as your product and logistics costs. Ultimately, you have to stay on top of your margins and reserves and ensure your pipeline of deals is always covering your upcoming expenses.
How to address this pain point: One of the most straightforward ways to overcome this challenge is to look after your accounting closely. Keep your books updated to get an accurate idea of your financial standing. Know exactly what your minimum deal profit needs to be each month and reverse engineer your deal flow to meet this.
Aside from this, it’s also a good idea to offer buyers in the real estate niche you’re in various payment options—this will make it easier for your buyers to complete their purchase, create cashflow for you and consequently increase your bottom line.
2. Finding Good Employees
Finding and recruiting talented employees to grow your small real estate business isn’t simple. First, you will need to offer salary packages and benefits that would entice them without sacrificing your venture’s finances. After you do hire them, you must work on retaining them next.
How to address this pain point: Start with building out effective processes and systems. The people you hire to fulfil the roles in your team will find it easier if they know exactly what to do, can be trained on it and can work towards the results you are after easily.
On top of that, you must actively find ways to engage your employees. If your people feel invested in the business, they will naturally work harder for it; they may even stay longer to keep contributing to the company. Consider involving them in the financial rewards via a bonus structure when deals are completed, so they feel they contributed to the success of that real estate deal.
3. Marketing the Business
Many small real estate business owners tend to omit marketing efforts because they do not have enough funds for it. Because of this, they often struggle to spread the word about their company and widen its reach.
How to address this pain point: Get started with content marketing and ensuring you target your key sellers and buyers. Having a great sales page and launching social media campaigns don’t have to be expensive; in fact, you can launch some content marketing efforts without spending a dime.
Enlisting business marketing services from a company who knows and understands your niche is also a great idea. Compared to hiring a complete marketing team, this option will give you your much-needed marketing boost without the high costs of recruitment.
Building and running a small real estate business is not an easy task. You will meet challenges along the way, especially during the early days of your venture. Nevertheless, you can tackle these pain points by first recognizing what they are and acknowledging that they’re there. After this realization, you will be able to work towards devising effective solutions. Ultimately, you’ll be able to turbocharge your business and take it to newer heights!
Supercharged Offers is a full-service direct marketing agency offering real estate businesses like yours a totally done-for-you growth package to help you scale. If you’re ready to turn your business pains into gains, get in touch with us today to get started!