Have you ever purchased something that requires assembly but ignored reading the directions and just started putting it together...

…Only to learn you had to start from scratch because you weren't doing it correctly?

Yes, I believe we've all been there.

I bring it up because that is exactly what I see many agents doing when attempting to develop their businesses and build their teams.

The errors they're making considerably stymie their progress until they realize they need to start over and get it right.

So today's essay will focus on five costly mistakes to avoid when scaling your real estate team. Let's get started.

Real Estate Team Building Mistake No. 1: Lack of a Clear Vision Of What You're Building

The first stage in assembling your real estate team is to define exactly what you want to accomplish.

• Do you require a massive mega team?
• Do you prefer a small, close-knit artisan team?
• Do you want to continue working in the industry?
• Will team members be in charge of their own production, or will the team provide direction?
• Will you solely hire administrative personnel or licensed agents?

These and other questions must be addressed before you begin assembling your team.

The more specific you can be about how you want your team to look, the sooner and more successfully you will be able to achieve that goal.

On the other hand, the less you describe what you're building, the more obstacles your future self will face.

Make a list of everything you want. Only then should construction begin.

Real Estate Team Building Mistake No. 2: No Clear Sales Engineering Vision

Business is a basic math problem.

How much X is required to produce Y in order to earn Z?

Far too many agents begin assembling a team without first considering this. Building a team entails overhead and other fees that you might not have faced as a single agent.

It essentially entails developing a new business plan for the team and reverse engineering how you will achieve your target financial goal. Don't skimp on this step!

Real Estate Team Building Mistake No. 3: Failure To Establish Clear Expectations And A Profitable Budget

You can negotiate your commission as an independent agent to your heart's content, though I wouldn't recommend it.

I'm referring to the "Well, it's only for this one deal" argument.

As a lone agent, you have no effect on anyone other than yourself.

When you have a team, however, everything changes. To achieve profitability, teams must have clear expectations regarding commissions, splits, budgeting, and other factors.

To put it another way, no more winging it. Building a successful team necessitates even more structure and guidelines than being a solo agent. Make certain that they are in place.

Real Estate Team Building Mistake No. 4: Kneecapping The Rainmaker

"Kneecapping the rainmaker" is a bit of a misnomer, but I think you get the idea.

If the success of your team depends on its leader "doing their thing," they must be able to do so without interruption or interference.

To free such people up to do their best work, it is often necessary to hire administrative employees and/or delegate chores so that your top performers may focus on what they do best.

Put the proper people and resources in place to allow your superstars to thrive in their specialized jobs!

Real Estate Team Building Mistake No. 5: Failure To Diversify

Members of our Team coaching program are exceptionally great real estate professionals, many of whom are market leaders.

And recently, I've begun asking some of the more successful ones a crucial question:

"Why don't you have a dedicated investment division?"

When non-owner occupied properties account for 16% of all properties in the United States, there is a tremendous chance to diversify your business.

I'm especially referring to committing a portion of your business to cater to investors. In my opinion, it's a no-brainer because many investors actively buy and sell homes far more frequently than the ordinary residential home buyer or seller.

Once your team is up and running, don't be hesitant to look for fresh ways to expand beyond simply adding more and more residential agents.