The Step By Step Process to Create Your Future (2/4)

Welcome back, Business Freedom podcast listeners. I'm calling this part two of a four part series. If you missed the last podcast, you probably want to dig in and check that out. That podcast was entitled how to scale your business during a crisis. And I really broke down the overall model that you should. You. I say, I really want to say, you must follow if you want to do this the right way. And this was based on my business growth journey. And it wasn't perfect or easy. It was surely intentional in terms of me not wanting to do the daily weekly grind of a successful real estate agent. I did 44 units in my first full year in real estate and that sucked. It was great. I hit the numbers. I was top 1% of my market and. And it just sucked. I was, you know, my boy Anders was, he was born in November 2007, so he was a baby that year. So luckily he didn't know a whole lot better at the time. And I hired my first buyer agent in 2009 and then we went from 58 to 118 to 178 sides. And that year 2012, if you haven't heard me already, I only mentioned all of that. And to keep reminding you that I didn't bring any business building experience. I had never marketed anything before, I had never sold anything before. I never, you know, I'd never done any of what I did to do what I did. And that's really the motivation behind this four part podcast series to break down the critical elements for you to be able to scale your business. On the one hand, we want to grow only if it leads us to more freedom. And when I talk about freedom, it is freedom of time, freedom of money, and just more money to enjoy that time. And then freedom from stress. You will hear me talk a lot about time, money and stress. So this part two of this four part series, we are going to dig into the step by step process to create your future. So the first part of the scale model is to create your. To create your future. And there are three things I'm going to spend more time on in this podcast episode than I did in that first part of the series where I just did an overview. And I really want you to understand that all of these elements fit together if you want to build a sustainable, profitable real estate business that doesn't require that you work evenings and weekends consistently and you make this shift from real estate agent to business owner. That is what real estate. You can see my T shirt here if you're watching the video. Real estate b School road map to freedom. And that's what we stand for. Roadmap to freedom. So this is that Roadmap, this four part series. So create your future. There are three things that I want to talk about. I'm going to spend more time to help you fully understand what I mean by each of these three elements. The first part is that to get clear on the model and there's just confusion on the different types of real estate businesses. And when I say real estate business, it's a business that helps buyers and sellers transact do a real estate transaction. So you help a buyer buy, you help a seller sell. That's a real estate business that I'm talking about. And when I talk about getting clear on the model. What kind of real estate business do you want to own? Do you want to own a brokerage where you have, you know my Keller Williams Market center is a brokerage. We're one of 875 independently or something like that. We're the number one market center for KW and there's 600, 550 agents or 600 agents or something crazy. The average production of agents in the number one KW market center in the world is seven transactions per agent. Now I know we went through a cleansing and we tried to get rid of some newbies. So we maybe that went up to 10 transactions per agent. That is a brokerage that typical agent is not making really good money at that production. At 10 units. Yeah, at 10 units in my market you're paying a full $25,000 to the market center. So do the math on that. We're about 200 and 275,000. Average price point times 10 transactions. 275 pays a full cap. Do the 3% on 275 is about 100,000, 25,000 out. Take out your expenses, your office expenses, technology, advertising, maybe a part time administrator. You're left with like 40, 50 grand. Right. That's a typical broker. So do you want to own a market center or a brokerage that runs a bunch of agents doing business a whole bunch of different ways or do you want to run real estate team that's highly coordinated, not a whole bunch of people, not a loose collection of agents, not a traditional team. That's low profit margin. A lot of these teams that you see out there boasting hundreds of units or a thousand plus transactions. I have yet to see a. Or I rarely see a real estate team doing a bunch of transactions where they're really profitable. And most of the time they Set it up in a way where, where the real estate team leader has to sell a ton of properties themselves, they have to do a ton of transactions to make the kind of money that they want to make because they set the whole thing up wrong. Or on the far right, we call it a high performance real estate team or a high performance organization. Hpo. That's from E Myth. I studied with E Myth for couple years back, a whole bunch of years back. And so I've consumed and devoured every kind of business training that you could possibly consume. And so E Myth, what they train their businesses, the businesses that they coach is to create high performing organizations or HPOs. And in real estate terms, I call them high performance real estate team. And my real estate team, ironically or not, is called high Performance Real Estate Advisors. And so on the far right of this spectrum, brokerages are on the left. On the far right, like the Navy SEALs of real estate, where everyone is accountable, every expense is accountable. You're tracking at a high level, you're bringing folks on and you have a cadence that is leading to really great results. Everyone is in their sweet spot, they're making really great money, they're not working too many hours. Everyone is living a life by design within this team that you built. And so you have to get clear on the model before you start building it or if you have one version of it and, and you're not super happy with it, you realize that, oh man, I'm starting this brokerage. I have 25 agents in my brokerage and it sucks and I'm losing money and I'm spending all this time with 25 agents that just suck at life, they suck at business and they're sucking the life out of me and they're sucking the life out of my business. You may be that person and you're realizing that you need to pivot hard into like a Navy Seals version of that. Let me grab five people and bring them over here and we can just do this at a higher level. And so that is what I mean, get clear on the model. What do you want to have this thing look like in the future? I'm talking three to five year vision for your real estate business. What do you want to have in the future and what do you think is going to be relevant in the future? Do you think a brokerage is going to be relevant in the future? Do you think that's going to be more profit in the future or less profit? Or do you think more profit is going to be in a business set up to be the best provider of buyer and seller real estate services in the whole entire land. Like, our goal is to be the best provider of real estate services in the entire country. Even though we have a single team in Charlotte, North Carolina. The goal is to be the best at what we do. And so there is no. The agent doesn't own the client. The team services the client. And every little interaction with the client is specifically designed to create this unbelievably awesome experience that they can just sing from the hilltops when they get to closing. And so what are you building? That's the question. So the second part here is to put your life first. Again, I want to say like 110% of the time, any successful, quote unquote, conventionally successful real estate agent or team leader, if you really dig into their life, you really, if you could follow them around for a month, four weeks straight and you can look at what they're actually doing and the amount of time they're actually spending in their business and the stress that they're actually enduring and the money that they're. We'll get into money later. That's in, know your numbers, that's in the next part. But time, money and stress, you'll hear me talk about it all the time. So if you look at a traditional team leader's business or even a top producing real estate agent, they have not, they have not coordinated all of this, their business, to support their life. Their life is their business. And it is absolutely seven days a week and it is absolutely on the evenings and there are no boundaries whatsoever. So within our construct and the training that we provide to our members, it's important that they know and we deliver the training and implementation support so that they can put their life first. So if your business, if your, if your life doesn't come before your business, that is not sustainable. It's just not sustainable. So you have to ask yourself like, what do you want in your life and what don't you want in your life? Those are two important questions. And then on a weekly basis, you have to ask yourself in a 60 to 90 minute clarity break, we call them, what's working and what's not working with respect to time, money and stress. If all you did for the next 30 days, once a week, so four weeks in a row you sat with yourself, no technology, and you just asked yourself what's working and what's not working in my business and my life as it relates to time, money and stress and just journal and then what could I do to make this better next week and just went through that process. I promise you, you'd be better off for it. The third part here in creating your future is to plan your future. There's that Harvard MBA study from, I think it's, I don't even know when it's from. If you, I don't even know what you would Google. I googled it one time. It goes something like this. And you can correct me if I'm wrong, but the gist of it is that they surveyed Harvard MBA graduates whether they had a plan for their future. And it was something like 15% had a plan, but only 3% had it written. So 85% of this graduating class from Harvard Business School, you know, something like 15% had a plan, but only 3% had a written plan. They pulled them like 25 years later or 10 years later. And the 3% that had a written plan out earned everyone else by 10 times. So if there were three that had a written plan and 97 that didn't, the three made 10 times, just the three. They made 10 times more income than the 97 combined when it came or 10 or 20 years out. So the moral of the story is that you cannot achieve your goals without a written plan. And we call it, you know, our three 190 and then we go weekly, daily with it, our three year vision in six areas of your life. One year plan in those same six areas, 90 day world. What are you going to focus on with respect to those six areas in the 90 days to get you closer to your one year plan, to hitting your one year plan, to achieving your three year vision. And then we break down the weekly and daily. If you're not planning your future with that much intention and specificity, you're going to lose the game. You're going to lose the game. You have no chance of hitting a target if you're not at least you know, you don't have this intention and you're not setting the coordinates properly to achieve that target. And this is where the chance that you fail in a marriage or fail as a parent or fail in your finances or your physical body or in business, it's because you didn't have a plan. And, and even if you did have a plan, you didn't, maybe you didn't have an actual way to execute the plan. So planning your future is like the entire game. And you have to have a process for planning your future. So that is it. That is create your future. That's the second part of the four Part series, but the first part of the three parts, when it comes down to scaling your business and especially in the crisis that we're in and the economic turmoil that's coming, you know, there's some that are predicting it's going to be a V, you know, the comeback is going to be quick. I just don't see it that way. You know, as we speak now, as I'm recording this, like 13, almost 20 million Americans have claimed unemployment in the last four weeks as of the recording of this. And it may be, it may be a week or so until this airs, but that's heavy. It may be up to 24, 25 million by the time this airs. And there are a lot of those jobs will go right back to work when some of the in home restrictions ease up. I just don't, I just don't see it. And on the one hand, it's an opportunity for folks that can actually clearly articulate where you want to be in the future. And that's why this part of the scale equation is so critically important. If you're at the point in your business journey where you know you need to have a conversation with someone, someone that's been ahead of you, that's done this before, maybe you're already starting to scale your business and bringing people into the fold and you just don't have this clear plan, you don't know your numbers and you're not growing your team the right way with people that you want to be around. You don't have a cadence at all, no training platform to speak of and you're not tracking your net worth and you don't have a way to move money around and it's just a crap show, but you're growing. Or if you are a top producing agent and you know you want to launch in right now and you know that you could build a business that's sustainable during this time or even if you have a big real estate team and it's not running the way that you know it could because you've set it up the wrong way. We deal with all of that. The only thing I can offer you is a conversation with me or one of my business coaches. It's called the Business Growth Strategy session. Head over to realestatebschool.com check out our resources. Also, if you know it's your time to book in for that free coaching session, we'll dig into really what's it like to show up in your business today. Second part is what you want it to look like in the future. And then the third part is, what's holding you back? What are the obstacles that are getting in your way to growth? So I'll see you over@realestatebschool.com. much love and respect. We'll talk soon.