The vast majority of commercial real estate sales and leasing professionals are independent contractors. Yes, in some specific national firms, their producers are classified as employees for a variety of reasons, but regardless all have a common purpose – to create profit.
Independent contractors, in particular, must acknowledge, and in fact, embrace this classification. Being an independent contractor generally means you can pursue your profit as you deem fit, within some parameters that the person who engaged you (your Broker of Record) establishes. As an independent contractor, you must recognize that you are not an employee. Bottom line, you are responsible for your personal profits – not your broker.
One of the most essential elements we instill with our commercial real estate coaching clients is that they are the Chief Executive Officer of their own business. Yes, you are the CEO of Me, Inc. As the CEO, just like the CEO of Amazon, Facebook or any other company you can think of, including your own broker, you have five divisions to support your pursuit of profits.
As with any company structure, you too 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.
5 Essential Divisions in CRE Brokerage
This incorporates your prospecting efforts, which is the disciplined act of asking for business.
This consists of your advertising, promotional, networking and digital efforts.
This incorporates your pipeline, your accounting and your personal business budget.
This includes your CRM/database, all other technology, and the transaction process incorporated in your practice.
This consists of your personal development, and the growth of your team.
In our subsequent blogs, we will explore each division more in depth. For now, click the button below to download a free Personal CRE Business Organization Chart to outline the key elements of your business. We will give you all you need to complete this chart over the next few blog posts.