How to Grow a Real Estate Business

[ Jacob Aldridge on Real Estate Uncut ]
by Tyson Cobb Published

Content originally featured on the Real Estate Uncut

Last week, our Director of Advisory and real estate industry specialist Jacob Aldridge was a guest at Real Estate Uncut, talking about how to grow a real estate business.

Jacob started by talking about how ‘Growth’ is the most dangerous word in business – not just because uncontrolled growth can send a business broke, but because the very word ‘Growth’ means different things to different people who may start pulling a business in different directions as a result.

Instead, strong Principals make sure to communicate why they plan to grow and have a system or framework for planning that growth so it’s sustainable and profitable. Find out more as Jacob takes us through the simple framework his clients use to choose from the 4 options for growth in a real estate business, and listen to the podcast links where he discusses it with Kevin Turner on the Real Estate Uncut Podcast.

Overview

Across the week of discussion, Jacob was using the Real Estate Growth Matrix (pictured above). For many real estate businesses, especially in the franchise groups, ‘Recruitment’ of more sales people is the only obvious form of growth. As a result, it’s usually seen as the cure to most problems – even when in reality it makes things worse.

This approach uses two, simple performance indicators – your Marketshare and your team’s Capacity (revenue) targets to guide you as a Principal or leader on where to focus your strategic energy.

As you can see, Recruitment is the best solution in only one of the four quadrants.

The Importance of Presence

What's the presence you need in the market to improve your profile? What does presence have to do with growth? Learn more as Jacob discusses more of the following:

  • How to set market share and capacity targets
  • The most common time people say they need to grow
  • What to do when your sales team is below Marketshare and below Capacity targets

Listen to the full podcast, including an introductory overview of the matrix here.

"Reach" is the next level

According to Jacob Aldridge, 'reach' is the focal point for a business where you exceed market share (whatever the market share target is) but your team is still below their capacity target. They fail to hit their individual sales numbers but overall, the agency is actually exceeding its market share. Jacob says to expand your reach, and that can mean more than just by extending it into other suburbs.

Learn more from looking at the different forms of growth as Jacob dives deeper into the following:

  • What if you are below capacity, but have the market share you want?
  • What are the most common mistakes Principals make in this situation?

Listen to the full podcast here.

Recruiting could be the answer

Whether you recruit a rookie or an expert, that won't matter if you bring them in at the wrong time. By doing so, you lose more than you gain. In Jacob’s experience, there is a right time to recruit and it could be the right strategy for your business to achieve growth.

But when is the right time to recruit? Learn more.

Listen to the full podcast here.

You can have your cake and eat it too

What do you do next to pursue growth when you're sitting on a dominant position in the market? You are in a strong position of ‘Choice’ – which may include recruiting and expanding.

Ask yourself... what's my longer term vision for this business? Learn more as he discusses the following:

  • Best of both worlds
  • You have choice
  • More people, grow into more areas, or just enjoy the profitability

Listen to the full podcast here.

And to wrap it up...

What good offices are always doing

In the final episode of this week’s real estate podcast, Jacob starts by discussing why he believes growth to be the most dangerous word in business. Different businesses have different situations and that's how you know where and how you want to push through with growth. Are you growing your management, your sales team, profile or profit? This is why he says growth means different things to different people.

You have to know what growth means for you and what kind of growth do you need to be focussing on? And of course, with Kevin Turner’s expert input as well, we summarise the week and the key lessons Principals and real estate leaders can take away when they are looking for how to grow their real estate business. Find out more.

Listen to the full podcast here.

Jacob Aldridge discusses more about growth in the 4th episode of the Blackboard Fridays series. Check it out here and subscribe to Blackboard Fridays here. 


You can download all of this week’s notes here.
Tyson Cobb
read more by Tyson Cobb

Tyson is a B2B marketer, inbound marketing specialist, content marketing enthusiast, and Head of Marketing at businessDEPOT.

He has spent the last 9 years in marketing and advertising, and has helped implement brand awareness and product marketing initiatives for many Australian companies, most notably BOQ, Instant Scratch-Its, Microsoft, Network Ten and Ubisoft Games. Tys now specialises in Inbound Methodologies and digital marketing in the B2B space.

As Head of Marketing at businessDEPOT, Tys develops digital & content driven experiences for the business, increasing brand awareness, lead generation and client retention and advocacy. 

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