The Stages of Real Estate Business Growth & The Key Questions That Will Help You Level Up

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What'S up there? Real estate team builders. Lars Hedinburg, the founder of Real Estate B School and the creator of this podcast. And the focus of the podcast, if you're new, is to really illuminate the business tools, systems, strategies and tactics without losing your mind and to do it sustainably, meaning you're not going to grind 12 to 15 hours a day and to do it profitably. And so that is the mission here. If you tuned in the last episode, Tara Lindbergh, who I had the pleasure of working with for probably five years or so in her real sort of heavy growth years and she talked about like the journey from solo agent to last year they did 648 transactions and what does that journey look like and how do you navigate it and what gets in your way, what challenges do you have? And just the whole concept of leverage. I'm going to share my screen if you're on YouTube and if you're not on YouTube, what I'm going through you can get a copy of by going to I think realestate business growth.com so realestate business growth.com and I'm going through the real estate Business Growth navigator as it relates to this conversation of leverage and like how do we navigate business growth? And so if you've heard me talk about this before, you know there are six stages of growth. And my journey 2007, seven left my corporate job, figured out somehow how to sell 27 homes. I didn't do it profitably in that first 10 month period. Then I went into 44 transactions in 2008, then 58, 118, 178, 248, 312 for something 320 or 412, something like that. And the year 2014 we sold over 400 homes with a pretty lean team, super profitably. I only worked 42 days that year. And so that's sort of the claim to fame is that I, I built every piece or I approached my business in a way where it was all about leverage. Literally asking myself the question, how can I get out of this job? How can I get out of this job? How can I get out of this job? Some of them were really obvious, like if I'm pushing paperwork or I'm designing. I remember my first 10 months I was designing marketing postcards and I was running them through the copier and then cutting them myself. Double sided cardstock and using like one of those cutting things. Like it worked, the postcard worked. But all I should have been involved in is maybe the design of it. Right. And how to target, you know, a mailer like that. And I remember just like Saturday afternoon, just like sitting at that copier. So leverage, right, so, and a copy machine is a form of leverage, but we want to leverage out of the jobs in our business that don't pay a lot of money. So that, that was the focus, that was the journey. And the six stages are, you know, start gets you to 100k, ramp gets you to 500k, build gets you to a million, lead gets you to 1.5 million, exit gets you to 2 million, and own gets you to 3 million plus. And I want to go through really the strategic questions and some of the things you need to do to get to the next level so that you can kind of identify where you are in the journey and what you need to do to get to the next level. So when you're 0 to 100k, your strategic question is not very strategic. It's where is my next deal coming from? You know, and to get to the next level, that 102, 50, 500k GCI, it's all about habits, skills building, and a determination to grow, like a burning desire to grow. 95 plus percent of agents live at the 100k and below. So it's where the industry lives. It's where the industry wants agents to live. Because most services, all the associations, the local boards thrive off a lot of agents selling a few homes. It's the biggest thing that's wrong with our industry, honestly. But let's leave that for another podcast episode. When you get to the ramp stage, that's 100k, 250k, 500k, where you're asking yourself if you have a mindset toward growth, where do I need leverage the most? And this is all about delegating administrative tasks. You can't be putting out signs, doing brochures, lockboxes, picking up a check at the attorney, like, those are errands. You're essentially most like half of a top agent's time, if you follow them around for a period of time, is just running errands, right? And so you need leverage and you need to set your marketing systems on autopilot and focus on selling when you get to the build stage. This is 500k to a million or so. The question is, what systems do I need to build? So where do I need leverage the most? And then what systems do I need to build or firm up? And this is really getting leverage on the buyer side, at least getting out of showings, maybe exiting buyers Altogether getting a buyer agent and now focusing on client care systems and then stepping into the again, if you have a mindset towards growth, you need to learn how to lead others from a sales management perspective. So lead stage, stage four is a million to a million and a half or so. The strategic question is how do I help my team members get ahead? So now we're shifting from how do I get ahead and build leverage and systems for me to shifting how do I help my team members get ahead. It's all about a culturing cadence, you know, not stopping the things that got you busy, you know, honoring that morning time block for new business development and lead follow up and running the right economic model. We've pre taught you at this point the right economic model in real estate B school terms. But you want to make sure you're running the right economic model. Then you go into exit, which is exit production. So if you have a desire to get out of production, the question you should be asking yourself is how do I grow transformational leaders? Because all of these questions, you're asking yourself the question with the next stage in mind. So as you're in the lead stage, a million to a million five, you're asking the question how do I help my team members get ahead? Because you have an eye towards exiting, you're asking yourself, how do I grow transformational leaders? There's no requirement to go to any stage or anything. It's all about your journey. But you definitely want to focus on systems for client care. You want to focus on elevating your ops and those sorts of things. So then we focus on client care systems, lead gen sales, elevating your ops leader, your sales leader, that sort of thing. And then we go to stage six. So stage six is all about asking the question, where can I have the greatest impact? So again you're thinking about now that I'm in the owner's seat in this business, like where I'm going to have all this time on my hands. The business is running profitably. It's a $3 million plus business. Where can I have the greatest impact in the business? The culture and the cadence are doing the heavy lifting and your job is just to know your numbers and elevate and feed into and serve those two or three key leaders in the business. So again, the reason I wanted to do this follow up episode is more so that you understand, you don't have to understand every step of the journey just to know that it's possible. But also it's predictable, right? Took me six years or so to go from new license to fully leverage out of production. Working one day a week in my real estate business. We've had hundreds of members come through real estate B school and sort of do that same thing. And that's my encouragement to not worry so much about what it looks like when I get to stage six. Just worry about like what you need to do to get to the next step. The next step. The next step. You know, there's six stages, but there's probably four or five steps, you know, big steps within each stage that we teach. And it's just taking one step at a time and that's the key and that's what we focus on. So if you're interested in learning more about like what would it look like to partner with Lars directly? Like to partner with me directly to help like, I will put my hands into your business and help you build your business without investing in paid coaching, getting all the tech you need, all the tools you need, all the systems you need, go to partnerwithlars.com that's partnerwithlars.com it lays out the entire. I'm building a platform that has never been seen in the real estate industry before and I would love for you to be a part of it. So go to partnerwithlars.com and we'll see you over there. Much love. Be good.

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