I recently watched the movie “Layer Cake.” It was a pretty good movie about a drug dealer. In the beginning, the main character opened by highlighting his business and a few of the rules he followed. Yes, believe it or not, this drug dealer had rules for his business.
He started off by saying:
“I am a businessman whose commodity just happens to be cocaine.”
I found this comment to be extremely important because you and I are entrepreneurs and our commodity just happens to be houses. The problem is that most real estate agents do not have this same perspective with their businesses. They do not view themselves as entrepreneurs. When you truly think of yourself as an entrepreneur, your business begins to change. You begin to see new opportunities. You begin to do things differently.
The drug dealer in Layer Cake shared these rules:
Only deal in kilos
Provide people with what they want
Work always with a small team
Only deal with people who come recommended
Maintain a very low profile
As long as you can take care of your customers, they’ll always come back for more.
Never be too greedy
Always respect your enemy
Make hay while the sun is shining
Avoid attention seeking ‘wanna be’ gangsters in it for the glory
Avoid the end user; they always cause you problems
Very, very important: Always pay your suppliers promptly in full, without fail.
Everyone likes to walk through a door marked “private”
When your business is on the up-and-up, have a plan and stick to it
Quit while you’re still ahead
When I first heard him explain these rules, I immediately paused the movie and grabbed my notepad. I began taking notes, starting and stopping my DVD player.
Can you apply these rules to your real estate business? Here is how I’ve applied them…
1. Notice that he dealt only in kilos. He purposely niched his business to work in a specific quantity of cocaine. This meant he eliminated all of the smaller, less profitable business. This volume apparently is more profitable and eliminates a great deal of risk. (I don’t know for certain because I’m not a drug dealer!)
2. He worked with a small, trustworthy team. This meant he kept tight rein on those with whom he worked. He made certain that he could trust them. If you don’t trust someone on your team, that person needs to go.
3. To avoid legal problems, he worked by referral only. This meant that he didn’t work with any Tom, Dick or Harry off of the street. He was very selective about whom he spent time with. Should you be selective about which clients you accept?
4. Take care of your clients.
5. Never be excessively greedy. If a client is unhappy, address the problem even if it costs money to do so. Keep your prospects and clients pleased, and they will come back to you.
6. Always respect your enemy. Your main enemies are your competitors. Pay attention to what they are doing in their businesses. Look for gaps in the marketplace that you can exploit to your advantage.
7. Avoid hiring agents with big egos. They are impossible to please.
8. Avoid contact with the actual client. They are very time-consuming. You are an entrepreneur, not an agent, remember? You shouldn’t be showing homes and negotiating offers, because you give up control of your time.
9. Always pay for advertising promptly, in full, without fail. Marketing and advertising are the pipeline of your business.
10. Make your clients feel special. Do special things for them that you don’t do for others.
11. Have a plan for your business and always stick with it. Do not let yourself get distracted. Don’t listen to what everyone else complains about. Keep your focus and work your plan.
12. Sell your business when you’re on top.
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