How to recession proof your real estate business

Nothing is certain in this world. That includes the stock market and real estate markets. Anyone who has been in the real estate industry for more than 10 years knows this too well. And while there are many ways to make sure your business thrives during good times, there are also some things you can do during recessions or tough economic times—things that will help your business not just survive but thrive. Here are my top tips for recession proofing your real estate business:

Use the lulls in business to make other systems stronger

One of the best things you can do to strengthen your business in the long run is to take advantage of the lulls that come along with a recession. Instead of panicking and worrying about what’s happening in the economy, use this time to make your business systems stronger.

It may seem counterintuitive at first, but focusing on building up your systems will actually help you grow faster once the economy starts improving again—and it will give you something to fall back on when things get tough. That’s why it’s important not just for new agents or those who are just starting out, but also for seasoned successful agents who have been around for a while and want to expand their businesses even further.

Here are some examples of things that could be considered “systems”:

• Accounting software or programs like QuickBooks Online so agents know exactly where their money is coming from and going

• Marketing tools like MailChimp or Constant Contact that allow them send emails to potential clients (or past clients) every month inviting to keep you front of mind

• A CRM system like Salesforce that allows you to track your sales and marketing efforts, so you know exactly what’s working and what isn’t.

Continue your content marketing and lead generation efforts

In the midst of a recession, you should continue to focus on content marketing and lead generation. These tactics will give you a competitive advantage in your market, and they are likely to help you stay afloat even if times get tough.

Content marketing is still important for real estate agents. It's critical for attracting leads and staying relevant in your niche community. If you've already been blogging about local news or industry trends, keep it up! You should also consider creating more content that attracts buyers directly to your website—for example:

• Creating videos that show off properties (this can be done with a smartphone) or explain why they're great investments

• Interviewing past clients who have bought homes from you

• Social Media posts, stories and reels highlighting your market knowledge

As long as these efforts are focused on attracting leads specifically interested in what they see on their screens at home or work, they'll make all the difference when it comes to increasing sales during this time period of economic uncertainty.

Focus on getting better.

There are four things you can do to help your business weather the storm:

Focus on getting better. If you want to protect and grow your business, focus less on the money and more on developing yourself as a person and as a professional. You don't have to be perfect but if you're constantly improving, it will be easier for everything else in your life—including your real estate business—to get better too.

Focus on the long game. Don’t get caught up in what's happening right now or why it's happening. Instead, focus on how you can use this opportunity to build a bigger business for yourself. Focus on what makes your business unique and special, and then find ways to make that even more valuable for your clients.

Focus on things you can control. Instead of worrying about things like interest rates and market conditions, focus on things that are within your direct control: your marketing strategy, the quality of your service offerings, etc. Focus on doing great work with integrity. You don't have to sell out or compromise who you are just because times are tough. Instead, focus on finding new ways to offer value to your clients by helping them solve real problems—not just selling more houses.

Focus on the positive. It may sound cliché but mindset really matters especially when the market is on the downturn. Everywhere you go, people are spreading doom and gloom. Go against the flow and focus on the positive aspects of your business and of life. People will be more attracted to your radiant energy than to negativity.

Get a mentor or coach

Consider getting a mentor or coach. Here are a few reasons Mentors and Business Coaches can make a difference in your business.

·      They can help you avoid mistakes

·      They can help you see the bigger picture

·      They can help you get unstuck

·      They can help you get better faster

·      They will hold you accountable

·      They will keep you focused on what matters most

Investing in your growth while business is slow may seem like a bit of a risk. But honestly, it is one of the keys to getting through a financially challenging period. By committing to consistent action and being intentional every day about your business you will be ready when business increases.

Maintain your mindset.

You might think that the best way to help your business is to work harder, but in reality, taking a break and maintaining a positive mindset are actually more valuable. You need to remember that the economy is cyclical and it will recover eventually—and when it does, there will be plenty of opportunity for you to take advantage of it. As long as you have time on your side, don't let yourself get discouraged by what's happening in the world around you. Remembering this will help keep you motivated and focused on what really matters: Your success as a real estate entrepreneur!

Conclusion

It is not easy to go through a recession, but it is possible. You just have to be smart about it. Remember that the most important thing is not to panic when things get tough and always have a plan in place so you can stay ahead of the curve.

-Andrea

Have you designed your Business Plan for your year yet? If you need help, I created a free business planning checklist that will step you through the process. Download it here.