In our recent blogs I shared how we work with our commercial real estate coaching clients in building their personal commercial real estate business. We instill the perspective that each is his/her own Chief Executive Officer of their own business. Yes, you are the CEO of Me, Inc. And as the CEO, just like the CEO of Amazon, Facebook or any other company you can think of, including your own brokers’, you have five divisions to support your pursuit of profits.
These five divisions include: Sales, Marketing, Finance, Operations, and Human Resources.
While sales and marketing create the revenue and your financial responsibilities are aimed at generating a profit, it is your operational aspects of your personal commercial real estate practice that reflect how well you are able to fulfill your opportunities and your personal capacities.
It’s fantastic to find and win opportunities, but what about actually converting those opportunities to fees? This is where your operations division comes into play.
As I noted in my initial blog of this series, you must implement each of these five divisions in your personal commercial real estate practice. Missing one of these essential elements could potentially stop your business and you from growing and ultimately producing profit. However, to consistently produce a profit you need to implement a strong operational foundation behind you.
Operations is defined as “the fact or condition of functioning or being active”. As a company, your personal CRE practice needs to function, and be as efficient as possible. Think of your operations division consisting of five components.
5 Components of Your Operations Division
- Transaction/Client Management – how you process opportunities from finding them to closing them
- Database Management – a platform/depository which allows you to work most efficiently
- Processes – simply put “how you get things done”, for transactions and all four of the other divisions in your personal commercial real estate practice
- Regulatory /Licensing – Staying in adherence with all Federal/State requirements
- Administrative duties – A junk box of non-revenue creation related duties, which supports all elements of your practice
Designed correctly, your operations division will put you in position to work less, while making more money. Do I need to repeat that – work less and make more money!
In our next blog we will explore the final division of your personal commercial real estate company, the most personal and personnel of them all – your human resource division. For now, download this free Personal CRE Business Org Chart to outline the key elements of your business. We will give you all you need to complete this chart in the final blog post of this series.