When is it time to prepare for support? How about NOW?Oct 11, 2021
by Coach Donna Fleetwood
According to Harvard Business Review there are 5 stages of business growth: Existence, Survival, Success, Takeoff, and Resource Maturity. The chart below illustrates the cycle of any business moving through these phases. Where are you on the chart? As Real Estate agents, we can determine where we are at on the growth chart in our career, and the larger we grow, the more support we will need or perhaps just “different” support. Stage III (Success) is the critical point where the agent becomes stable and profitable.
Stage I (Existence) This is the world of the newer agent or the agent who decides to go no further. There are few clients, little organization, systems are not efficient or non-existent. The agent does everything themselves. This is dangerous territory without growth because Stage I takes up tremendous energy and financial resources to keep going. Agents who choose to stay at this level may not be in the business more than one or two years.
ASK FOR SUPPORT from your broker, manager, friends, family, peers.
Stage II (Survival) This is the stage where there are enough clients coming into the lead funnel to keep the agent afloat. The goal is survival, and the agent is still doing most of the work. Business planning does not happen. There is a push and pull between income and expenses with no profit and loss analysis. At this level, some agents “think” they are profitable as the checks get spent before the bills are paid. If they have a steady supply of clients are coming in, they move to phase III.
GET SUPPORT from coach, broker, manager, friends, family, peers, bookkeeper, cleaning person, babysitter.
Stage III (Success) is the critical point in growth decision making. Does the agent stay stable and profitable or decide to go for the next phase, perhaps starting a team or brokerage? Once agents reach this level, around 80% will chose to stay here and that’s okay! Agents at this level have coaches, business plans, and systems to make their life easier. They have at least one assistant. Some agents use this stage as a platform for other pursuits such as nonprofit work, hobbies, running for office, climbing mountains, etc. Agents at this level see that with a profitable business, growth can mean more time off, or increasing average sale prices without doing more.
GET SUPPORT from coach, broker, manager, friends, family, peers, administrative assistant, buyer agents, bookkeeper, accountant, food delivery, gofer.
Stage IV (Takeoff) Is there a larger dream? The agent must be a great delegator, manager, and have the cash to fund a rental division, a team, or a brokerage. The risk is to grow too fast without the cash, the right people, or refined systems. GET SUPPORT from a coach, other agents who have done it in the same venture.
Stage V (Resource Maturity) Agents can skip Stage IV and go right to resource maturity when ready. Systems run smoothly and business may be less dependent on the lead agent and more dependent upon agents who are possibly managed by someone else. The agent has set aside funds for the ups and downs of the business as well as retirement. This stage can become static unless the agent can stay creative and engaged in market changes. The agent has a coach that is experienced in mature business strategy. GET SUPPORT from all the other stages including coach, money manager, retirement planner.
What Stage are you at? Look at the list and make note of where you can ask for support NOW!