Is the economy shifting?
That’s the question on everyone’s minds right now. As we know, the real estate market has remained slow amid high mortgage rates and inflation. It’s worth asking what’s going on in the economy and what it means for real estate agents trying to keep their businesses afloat.
What I really want to do is help you prepare your business for the type of market we’re facing. I’ll give you four strategies to recession-proof your business and seize this period of economic downturn for your advantage. As you can see, this is the best time to expand your market share if you do it correctly. This is a message of hope and not one of negativity.
Shift #1. Focus on Operational Efficiency - The Harvard Business Review researchers dove into different combinations of offensive and defensive plays that companies ran and rated them based on their effectiveness. Those who cut employees while focusing on market development and investing in assets performed the worst. On the other hand, those who used the same offensive moves while focusing on operational efficiency instead of employee reduction performed the best overall.
Streamlining your operations comes down to organization, continuous training, and tracking and measuring results, and non-stop development. When you study your business and cut all the things that don’t serve you, it creates space for more impactful actions. Right now, we can’t talk about efficiency without talking about AI.
According to Forbes, business owners who have adopted AI into their workflows report experiencing a 50%+ improvement in overall productivity. As a real estate agent who wears so many different hats, this is especially true. AI can help you edit videos, create social posts, improve your website, automatically set up appointments, interpret data, optimize your schedule, and so much more!
Shift #2: Strategic Marketing & Lead Gen - It’s not enough to just put out more marketing. To survive and thrive after an economic downturn, you need to get strategic about what channels you’re running to minimize costs and maximize results. If you’re just putting out more of the same and throwing money at the problem, that’s how you end up in that 26% Promotion group.
Start with your messaging. When people find themselves in a new economic situation, the messaging is more important than ever. Decide the story you want to tell and choose channels that will allow you to convey it to your target audience while remaining within budget. Luckily, there are a few marketing channels that cost next to nothing and have proven effective under any circumstances. And remember, most of your competition is as scared as you might be.
They will likely pull back on their marketing and regret it later. This is a massive opportunity for you to scoop up market share.
Shift #3: Mindset is Everything - That is so very important. Do not go reading the news in your free time. Take in just as much news as you need to stay informed and do your job effectively, and then get your head to a more productive place.
Buy one of the mindset books on this list – or all of them – and read a chapter every morning. Listen to them in the car or on the treadmill. Mediate, exercise, and eat well. Write out your mission statement, create a vision board, and keep a gratitude journal. Do whatever it takes to get out of the noise and keep charging the storm.
Shift #4: Invest in Training, Knowledge, and Guidance - If you want to achieve the first three plays in this list, this one is how you do it. Training and guidance and the most recession-proof strategy you can possibly adopt – for both you and your team.
We’re not in a Speed Market anymore. This is a Skills & Strategy housing market, so only those with the best skills and strategies will win. That’s where training sets you apart. It’s the reason that agents who join real estate coaching begin to multiply their GCI within the first year and continue to grow consistently after that.
When it comes to your team, providing training is your best tool for keeping them engaged and loyal. Researcher Bob Nelson states that other than direct recognition, career development opportunities are the best way to drive employee engagement. Data from Deloitte shows that 26% of all employees are actively disengaged but developing a learning culture and providing training can rapidly drive engagement and boost retention by 30-50%.
As I said before, this is an uncertain time, but there is nothing to be worried of if you have the skills, knowledge, and expert guidance to handle whatever the world can throw at you. Training = Confidence. Remember that.
Strength and Courage,
Wade
