•
Scaling a wholesaling real estate business from a solo operation to a full-fledged company with employees is a pivotal move for entrepreneurs in this industry. For those juggling many roles and wondering if it's time to hire help, insights from Jason Medley, leader of a mastermind group called Collective Genius, provides a wealth of knowledge. With experience guiding over 500 wholesalers at various stages of business growth, he shares strategies on the optimal timing for onboarding the first employee and giving the operation a boost towards scaling up.
Understanding When to Scale
When running a solo wholesaling operation starts to feel like a one-person band playing multiple instruments, it may seem logical to start building a team to handle individual roles. However, prematurely inflating payroll without adequate planning and systems in place is akin to siphoning cash directly out of the business.
"What you're really doing is you're sucking the oxygen out of the business, which is the cash, right? Because you're blowing up your payroll..."
Instead, the focus should first be on improving individual efficiency as much as possible. Consider a scenario with just oneself and another efficient team member, working synergistically to close more deals and increase profits. This lean and efficient mode of operation sets the stage for smooth scaling in the future by accumulating a healthy cash reserve.
The Tale of Three Assistants
Hiring the first employee can often involve some trial and error before finding the right fit, as evidenced by one entrepreneur's experience:
The first hire showed enthusiasm but lacked attention to detail, planning a company event at a venue that had closed down without realizing. Another left the front door open resulting in the escape of the office cat!
The second hire lasted 9 months, a moderate success. However, the fault lay primarily with the employer for not assigning enough tasks and leaving the assistant waiting for work.
The third hire was finally the perfect match, thanks to business coach Dan Martell's advice to prepare delegation material before hiring:
"You are not looking to elevate, you can't elevate out of your existing role until you delegate your way out of it."
Executing the Perfect First Hire
Instead of opting for a high-level role like an acquisition manager as the inaugural hire, consider an executive assistant instead to handle day-to-day minutiae. This will free you up to focus more on closing deals. Master the art of delegation by starting with tasks that don't require your core expertise. Then once processes are running smoothly with an assistant, consider bringing on more specialized hires like transaction coordinators or acquisition experts.
"You're not looking to elevate, you can't elevate out of your existing role until you delegate your way out of it."
Consistency is Key
Before starting to build a team for the wholesaling operation, the CPR acronym sums up what needs to be in place: Consistent, Predictable, Reliable. Hitting an occasional fantastic month does not necessarily equate to a scalable business model. Ensure consistent deal closings for a prolonged period before considering expanding payroll.
Marketing: What Works?
When asked about marketing trends currently working well, Jason emphasizes one simple but crucial tactic - follow-up. It's easy to focus intensely on hot leads while ignoring cold leads. However, today's cold lead could become tomorrow's hot deal. The cost of following up is virtually zero.
The Ever-Evolving Marketing Landscape
Rather than any single supreme new marketing trend, techniques come and go. What remains most vital is the art of following up based on targeted, high-quality data. The specific mediums used such as SMS, social media ads, etc. are secondary as long as prospects are targeted from multiple angles.
Community: The X-Factor for Growth
For emerging real estate investors aiming to scale up from 10 deals per year to more significant volumes, joining a community of peers overcoming similar hurdles provides invaluable support. Groups like CG Elevate offer an ecosystem to learn, grow and accelerate forward guided by members already successfully doing hundreds of deals.
"Our entire focus in that group is to help you double your deal flow."
Ready to transition from a solopreneur to a sophisticated real estate strategist? Start by embracing efficiency, thoughtful delegation, and consistent performance as the cornerstones for growth. Combine that with Jason's wisdom for scaling wholesaling businesses and watch your enterprise thrive.