So you have decided you want your real estate business to be part of a group; now the search is on for the best group.
Unfortunately there is no clear answer to the question which brand, franchise or co-operative is best - every person will have a different best depending on their individual needs, goals and desires. It’s clear there are a myriad of choices - from low flat fee co-operative marketing companies where you are just paying for the right to use the brand, right through to high percentage fee franchises where you get an entire business model delivered almost on a plate replete with full support services.
Your choice will depend a lot on how compelling you feel the brand will be, both for potential customers as well as potential staff. It should also depend on how much and which bits of the business you want to do or outsource yourself, like technology solutions, training and general business information.
But perhaps most importantly, make sure you align yourself with a business that has the same goals you have for your own business.
Meet the people in charge, talk to them about how they operate their business, what they want for the future and how they react to change. Do they stay one step ahead of the market or are they reactive? Do they push themselves and have big plans or are they content to grow slowly, organically? Where do they spend advertising money and what is the measurable effectiveness of it?
Ask them specific questions about how they can help you - what facility will they provide for you to grow your business? Will they give you advice on how your business should look in year one, two, three and four; how much profit and how much wealth? What type of training, what type of technology, how do they help with recruitment?
There is no right or wrong answer to these questions, but what you see and hear will either resonate with you or it won’t. And if it doesn’t, there’s probably no point in joining that particular group as it is bound to lead to heartache down the track.
The bottom line is real estate is a people business. Your choice of which group you join has to come down to the people who are in it because they’re the decision makers for the brand you want to be operating under indefinitely. If you’re going to trust others to make decisions that will affect your business, it’s critical you feel you can trust them and that they have the same values you do.
And just as importantly as what you will get now is what you will get in the future - how the group will deal with a market which will be unpredictable and undoubtedly challenging in the future.
Ensure you consider your decision carefully. Changing brands later can be like trying to change the oil in your car after leaving it too long - the damage is already done and the cost is high.
