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Bernice Ross
Are you thinking about starting a team or do you already have one? If your team is making any of the mistakes listed below, take immediate steps to correct them. Failure to do so can result in disputes within your team, cash flow problems or even the disbanding of your team.
Sometimes, the mistake comes right out of the gate. Hiring a buyer’s agent as your first team member is a recipe for disaster. If you don’t have the administrative support to handle the business that is already coming in, adding another agent to the mix will only increase the number of issues you are facing.
Instead, your first two hires should be administrative. A great place to start is with a transaction coordinator. Since transaction coordinators are typically compensated on a per transaction basis, you only pay for the time you use.
If you’re hiring your first in-office or virtual assistant, make a list of what you love to do and what you hate to do. Your “hate-to-do” list is the job description for your first administrative hire.
Only hire a buyer’s agent once you have the necessary administrative systems in place to handle the extra business. In many cases, a virtual assistant who has their own equipment and only charges you for the hours you use may be a better choice especially if you’re working from home.
Systematize Your Business
Creating systems is critical to your team’s success. To begin this process, jot down each step you take from start to finish in your transactions. This creates a basic job description. As you expand, repeat the process for each new position on your team.
You should also document your lead–generation processes, the systems you’re using for tracking transaction data, as well as how you are using your CRM. Look for ways to automate as many processes as possible. This frees up time for your team to do more lead generation and close more transactions.
Next, organize these documents into a “Team Systems and Procedures” manual. This documentation allows you to cross-train team members to handle different roles on your team and also makes it possible for you and your team members to take time off.
Michael Gerber’s book, “The E-Myth Revisited,” is mandatory reading, especially if you’re just starting a team. Gerber explains that when you launch your team, you must identify who will handle three primary roles on your team: the technician (the person who delivers the service), the entrepreneur (the team lead or rainmaker) and the manager who supervises operations and is also responsible for handling payroll and taxes.
How these different roles are handled requires you to “work on” your business, not just “work in” your business. “Working in” your business includes generating leads, converting leads, and closing transactions.
“Working on” your business means stepping away from the business to evaluate your numbers, monitor cash flow, market trends, and how to adjust your activities to maximize the effectiveness of your business. Numbers you track should help you see which areas of your business are generating the highest return and which areas are failing to provide an adequate return.
Failure to track where your business is inefficient or is losing money is a sure way to go out of business.
Mishandling Personnel
Do you require team members to attend meetings at specific times, use your tools and systems, lead generate in a certain way and/or time, or follow specific instructions about how they conduct their business? If so, you are treating them as an employee and may be subject to substantial fines under independent contractor laws, an issue which is gaining greater prominence as states try to challenge companies like Uber to provide more benefits to the independent contractors on whom they rely to do business.
Unless you are the supervising broker for your company, as an individual team leader, you cannot engage in these activities unless you have hired the person as an employee. There is zero protection for you in the independent contractor laws. This is a complicated issue and varies from state to state, so first check with your supervising broker about what is required and then with a labor attorney about what your state requires.
Before bringing any one on your team, conduct at least three interviews with the person, one by phone to see how well they handle phone conversations, and the other two in person. Someone can always bring their “A” game once. Doing it three consecutive times is much more difficult.
When you realize you have hired someone who is not a fit for your team, fire quickly. The longer you draw out the process, the harder it will be.
If you find yourself making any of the mistakes outlined above, pivot now to ensure your team will be as productive and profitable as possible in the future.
Bernice Ross is a nationally syndicated columnist, author, trainer and speaker on real estate topics. She can be reached at bernice@realestatecoach.com.
