In a recent Real Estate Magazine article, I discussed the idea of value proposition. I wrote about how the value proposition of Realtors, brokers, real estate boards and associations, and the sector have evolved. I also highlighted how the value proposition will continue to evolve. 

As I’ve reflected on that article and how Realtors and brokers can adapt to the inevitability of a changing value proposition, I’m also struck by an idea that I’ve had a hard time putting into words. 

I’ve long thought about the opportunity for Realtors to adopt the perspective of small business owners, because one, that’s exactly what they are, and two, business owners typically look at the world through a future-based lens. Considering the myriad external forces around them from the perspective of a business owner, rather than that of a salesperson or contractor, would shape the way Realtors react and adapt to the shifting environment. 

 

Inspiring the small-business owner mindset

 

So, in considering how to inspire this mindset, I thought I would lean on a personal project that I’ve enjoyed working on over the past year. As the host of my own podcast, I’ve spent well over 50 hours speaking to small business owners about their business journey. Having them share their experiences, struggles, successes, and lessons has been a true pleasure. But it’s also given me a lot of fodder for conversations related to my professional world in the real estate sector. 

Over the course of creating the podcast, I’ve noticed some “red threads” – themes that run throughout the conversations, no matter the size, scale, or type of business. I want to share these nine themes in the hope that they inspire Realtors to consider the changing value proposition from a different perspective.

 

1) Learning

 

There is consensus amongst my podcast guests that there is no formal education that can fully prepare you for the realities of business ownership. Owning a business is educational, and learning happens at every turn. There was even one story shared where two business partners agreed that a money-losing situation that resulted in lessons being learned would be tracked as “tuition” in the expense statement (I recommend speaking to your accountant before doing this). 

I think this concept can be appreciated in the real estate sector where no amount of licensing education can quite prepare you for the ins and outs of day-to-day business.

 

2) Mentorship

 

This comes up a lot. Sometimes, guests shared the strategy of engaging mentors intentionally, while others could simply identify those who guided them on their journey. This is another topic that comes up in the real estate sector, where formalized mentorship programs are often explored. 

As small business owners, Realtors appreciate the value of a mentor and most can identify who that individual has been for them.

 

3) Purpose before profit

 

This is probably my favourite theme and one that likely resonates with most listeners. For many (if not all) of my podcast guests, their primary motivation is the purpose of the business, not the money they make. They are all driven by why they started the business, and the profit comes only if they continue to be motivated by the purpose. 

I would say that Realtors already do this really well – focusing on their clients’ best interests as a priority over the commission cheque.

 

4) The human element

 

There is often a conflation of the business and the business owner – by employees, shareholders, consumers, and so on – which leads those around the business owner to forget that they are human. The truth is that business owners are heavily impacted by the difficult decisions they often have to make. 

Decisions are not made in the absence of emotion, and an appreciation of this humanizes the business owners to those around them.

 

5) Scaling

 

My guests and I often talk about growing the business. Sometimes the discussion focuses on growth strategies that didn’t work; sometimes it’s fear of growth; sometimes it’s effective scaling, whether planned or not. 

Considering scale rather than simply the pursuit of the next deal, client, or listing will give Realtors a perspective of strategic growth, rather than transactional growth.

 

6) Growing for growth’s sake 

 

This ties back to the scaling topic. It was something that I experienced, so I can relate when guests discuss it. 

Business owners need to measure business growth by a healthier bottom line or balance sheet rather than simply by the number of employees, size of the office building, or number of locations.

 

7) Throwing good money after bad

 

The idea of knowing when to abandon something that isn’t working – whether an expansion, a new product line, or even just the original business – comes up a lot. It can be difficult when a business doesn’t do what an owner expected, and even more difficult to change course.

Realtors invest in many different aspects of their business and get caught up in not wanting to abandon an initiative because they have already invested and want that investment to pay off. But sometimes it’s a necessary step to make room for the next successful endeavour.

 

8) Work/life integration

 

Business owners commit a lot of time to running their business and this often calls into question how they balance everything. In an early episode of the podcast, a guest shared this idea of work/life integration: It’s not about prioritizing the business over other things, such as family; it’s about integrating the business life with everything else. 

This idea has presented itself whenever the discussion of work/life balance comes up, and there may be no better example of it than the life of a Realtor.

 

9) The power of luck

 

This one is not discussed outright in any episode (I don’t think), but it is certainly a theme. There are so many instances in any business journey where luck plays a part, whether it is obvious at the time or not. 

I’m sure every one of the roughly 150 thousand Realtors across Canada can point to a happenstance, coincidence, or fluke that contributed to where they are today.

In my conversations with small business owners, I’m continually inspired by their strength, creativity, and adaptability. I see those same qualities in Realtors I meet across the country.

The value proposition is continuing to evolve, and a mindset shift like the one I’m speaking about will empower Realtors to adapt and become better positioned to thrive in the future.