Why Would You Want to Expand Your Real Estate Business?
So, everything is going great for you. Your real estate team is out-performing your wildest expectations. Transactions seem to be pouring in. Are you sure you want to expand your business? Why would you want to mess with success? How did that concept even come up?
There are three good reasons why you should consider expansion for your business. It:
- Increases profitability.
- Grows bigger business.
- Deepens your bench of talent.
When you think about increasing profits and growing a larger business, consider Starbucks. Their first location opened in 1971 in Seattle. The owners could have continued to run their single successful coffee store and pocket the profits. However, that business strategy would have certainly limited the company’s potential for growth, increased profits, and new opportunities so, instead, they opened another store…and then another. By 1986, the company operated six stores in Seattle – and the rest is history.
However, as compelling as increasing profits and growth are, it’s really the third reason for expansion – deepening your bench of talent – that is so attractive to me.
In a way, it’s surprising it’s taken us so long to recognize that talent is our only sustainable competitive edge, and expansion is the best way to get there. Yes, you should build out your team because, while everyone should be capable of performing their tasks, each person seems to have their own particular individual strengths and specialties, which you can leverage.
Then, through expansion, you can partner with other best-in-class talent. As you grow and deepen your bench of talent, you are putting yourself at less risk, which means more peace of mind for you. Now, should a team member move on, not only won’t you be left high and dry but also, if one of your team members leaves the area, through expansion they’ll be able to stay on your team.