In one recently Real estate magazine articleI discussed the idea of value proposition. I wrote about how the value proposition of agents, brokers, real estate boards and associations, and the industry, has evolved. I also highlighted how the value proposition will continue to evolve.
As I think about that article and how real estate agents and brokers can adapt to the inevitability of a changing value proposition, I’m also struck by an idea that’s hard for me to put into words.
I’ve been thinking for a long time about the opportunity for real estate agents to adopt the perspective of small business owners because, first, that’s exactly what they are, and second, business owners typically look at the world through a future-based lens. Considering the myriad external forces around them from the perspective of a business owner, rather than that of a salesperson or contractor, would shape the way real estate agents respond and adapt to the changing environment.
Inspiring the mindset of small entrepreneurs
So when I thought about how to inspire this mindset, I thought I’d lean on a personal project I’ve enjoyed working on over the past year. As the host of my own podcast, I’ve spent over 50 hours talking to small business owners about their business journeys. It was a real pleasure to have them share their experiences, struggles, successes and lessons. But it has also given me a lot of material for conversations related to my professional world in the real estate sector.
While creating the podcast, I noticed a number of ‘common threads’: themes that run through the conversations, regardless of size, scale or type of company. I want to share these nine themes in the hope that they inspire brokers to look at the changing value proposition from a different perspective.
1) Learning
There is a consensus among my podcast guests that there is no formal education that can fully prepare you for the realities of business ownership. Owning a business is educational, and learning happens at every turn. There was even one story shared where two business partners agreed that a money-losing situation that resulted in lessons being learned would be recorded as “tuition” on the expense report (I recommend talking to your accountant before doing this).
I think this concept can be appreciated in the real estate industry, where no amount of licensing training can fully prepare you for the ins and outs of day-to-day business operations.
2) Mentorship
This is common. Sometimes guests intentionally shared the strategy of engaging mentors, while others could simply identify who guided them on their journey. This is another topic that comes up in the real estate industry, where formalized mentorship programs are often explored.
As small business owners, real estate agents appreciate the value of a mentor and most can identify who that person has been to them.
3) Purpose before profit
This is probably my favorite theme and one that probably resonates with most listeners. For many (if not all) of my podcast guests, their primary motivation is the purpose of the business, not the money they make. They are all driven by why they started the business, and the profits will only come if they stay motivated by the purpose.
I would say that brokers are already doing this very well: putting the interests of their clients as a priority over the commission check.
4) The human element
There is often a conflation of the business and the business owner – by employees, shareholders, consumers, and so on – that causes the people around the business owner to forget that they are human. The truth is that business owners are heavily influenced by the difficult decisions they often have to make.
Decisions are not made without emotion, and appreciating this makes entrepreneurs more human to the people around them.
5) Scaling
My guests and I often talk about the growth of the company. Sometimes the discussion focuses on growth strategies that didn’t work; sometimes it is fear of growth; sometimes it means scaling up effectively, whether planned or not.
By considering scale rather than simply pursuing the next deal, client or listing, brokers gain a perspective of strategic growth rather than transactional growth.
6) Growing for the sake of growth
This ties in with the topic of scaling up. It was something I experienced, so I can relate when guests talk about it.
Business owners should measure business growth by a healthier bottom line or balance sheet, rather than simply by the number of employees, office building size, or number of locations.
7) Throwing good money after bad
The idea of knowing when to give up on something that isn’t working – whether it’s an expansion, a new product line, or even just the original company – comes up often. It can be difficult when a business doesn’t do what its owner expected, and even more difficult to change course.
Brokers invest in many different aspects of their business and get caught up in not wanting to give up on an initiative because they have already invested and want that investment to pay off. But sometimes it’s a necessary step to make room for the next successful venture.
8) Work/life integration
Business owners spend a lot of time running their business and this often begs the question of how they balance it all. In an early episode of the podcast, a guest shared this idea of work-life integration: It’s not about prioritizing the business over other things, like family; it’s about integrating business with everything else.
This idea has come up whenever the discussion of work-life balance comes up, and there is perhaps no better example of this than the life of a real estate agent.
9) The power of happiness
This isn’t directly discussed in any episodes (I don’t think), but it’s definitely a theme. There are so many instances in every business journey where luck plays a role, whether it is obvious or not.
I’m sure any of the roughly 150,000 real estate agents across Canada can point to some coincidence, coincidence or coincidence that contributed to where they are today.
In my conversations with small business owners, I am constantly inspired by their strength, creativity and adaptability. I see the same qualities in real estate agents I meet across the country.
The value proposition continues to evolve, and a mindset shift like the one I’m talking about will allow brokers to adapt and be better positioned to thrive in the future.
As a former managing broker and broker, Trevor Koot’s nearly twenty years of experience in organized real estate gives him practical expertise in understanding the needs of the profession. Prior to serving as CEO at the BC Real Estate Association, he served as CEO of Kamloops and District Real Estate Association for four years and Kootenay Association of Realtors for three years before successfully merging the two into the Association of Interior Realtors. Trevor’s leadership in the real estate industry began long before his career as CEO, when he served as Chairman of the Saskatchewan Real Estate Commission for five years. During his tenure, he played a key role in rewriting provincial real estate regulations. Trevor also chaired the Governance Committee of the Association of Real Estate License Law Officials for two years.
He has multiple degrees, from a Bachelor of Science in Kinesiology and a minor in Mathematics from the University of Saskatchewan to a Master of Business Administration from Royal Roads University. Trevor is expanding his extensive education through his current pursuit of obtaining a Master of Laws degree from the University of York. His daughter, Abby, is a student at the University of Victoria, while he and his wife, Jill, live in Vancouver’s Chinatown.
#Koot #Thrive #change #small #business #mentality