Running an Estate Agency can be hard, but then running any business is hard. Yet isn’t it supposed to get easier over time? Unfortunately, for a large percentage of businesses, although revenue increases, things never seem to really become a whole lot easier, but what if it did? Statistics from Bloomberg show that 30% of businesses will fail in the first 2 years of trading, so if you have made it past that, well done, you are actually in the top 70%. But what next? After this there is a clear split in what happens to a business, the majority go down a slip road that takes them onto an M25 like ring road. They will continue to go around that ring road and the stats don’t read well.
Between years 2 – 15 of the business these are the stats:
- 66% don’t make it to their 10th Birthday
- And, 75% never get to year 15!
The ring road most businesses find themselves on over that period of time is like a cliff edge that you are always looking over and worrying about. With too much competition growing over time as new entrants make your life harder, this usually results in it becoming harder to charge the fees you require, creating more stress. Technology also moves on over time either replacing some of the functions your business does or leaving you behind from a knowledge perspective, and because of all of these reasons, 75% of businesses close at some point in that 15yr period - that’s if a heart attack doesn’t get them first!
But what about those businesses that took the other slip road? The 25% that survived. To explain this, I want to introduce you to something I call the Google Rule.
So, what is the Google Rule? The Google Rule is based around the concept that whilst most companies, products or services deteriorate over time and require updates or replacements, Google actually gets better with time. The more people that run Google searches the better the search engine becomes at delivering the right answers to people. The better it becomes at predicting what the question is that you are typing before you have even finished. The better it becomes at serving up the right adverts to the right people.
There are now 3.7 million google searches running every minute, making that data better and better and better every second of the day. Anyone can create an internet search engine but NO ONE can compete with Google - they are now almost impossible to catch in their space because of this.
So, here is the thing. Google gets better with age because they have created value in just gathering data. Therefore, the longer you have been gathering data the better and more valuable your business becomes, BUT it has to be the right kind of data.
Most businesses are just gathering transactional data and then storing it in a transactional database hoping that it turns into some form of money in the short term. Occasionally they try to ‘hit’ that data on mass with a stick to see if they can wake any of it up, but other than that it remains dormant and pretty useless.
But what if YOUR business had systems that meant just by being open, your company becomes not only more valuable and helpful, but also for every day that you are open, it becomes more and more difficult for any competitors to ever challenge you?
This is where the Lifesycle system comes in, helping agents to understand this and then delivering a system for them that will create an entire cross channel marketing eco system, all linked to one central source of valuable data, without them needing to do anything in order to implement it.
If you would like to learn more about the way businesses are breaking the rules of competition and gaining an unfair advantage you may like the best-selling book ‘The Estate Agency Revolution’ which can be purchased on Amazon here.