Starting a real estate brokerage is an exciting endeavor, but it can also be overwhelming. To ensure smooth operations, save time, and promote growth, it's essential to develop a real estate brokerage procedures plan. In this article, we'll delve into the importance of a procedures manual, provide a template, and guide you on how to create your customized plan.
No Task Is Too Small for a Procedures Plan
In a real estate brokerage, even the smallest tasks matter. Take making coffee, for example. You might not think it has any impact on your business, but minor oversights can accumulate and lead to significant failures. Imagine a scenario where different receptionists choose different coffee brands, causing confusion and discontent among agents.
To avoid such situations, it's vital to have a written procedures manual. Clear instructions on preferred brands, quantities, and alternatives can prevent unnecessary conflicts and confusion.
How to Create Procedure Plans for Your Real Estate Brokerage
Developing a comprehensive procedures plan is essential, and it goes beyond mere task descriptions. Each procedure should include six key features:
1. Objective
Clearly define the desired outcome of each task. Objectives should be measurable to ensure that everyone knows what is expected.
Example: The sales manager's objective is to recruit two agents every month to enhance profitability and brokerage growth.
2. Who
Identify the person responsible for completing each task. Keep in mind that the responsible person may not be the one performing the actual work. Choose someone accountable for the task's success or failure and as a point of contact for support.
3. How
Provide a detailed, step-by-step explanation of how to complete each task. These instructions minimize the need for additional supervision, enabling employees to perform their assigned tasks effectively.
4. Frequency
Specify how often each task needs to be completed. Depending on the nature of the task, it may be daily, weekly, monthly, or annually. Clear guidelines ensure that tasks are not overlooked or forgotten.
5. Standards
Establish quality standards for each task, along with clear metrics for measurement. Even simple tasks like answering the phone should have defined standards to maintain professionalism.
6. Budget
If a task requires spending, outline the budgetary limits and obtain necessary approvals. This ensures financial accountability and prevents overspending.
Example Procedures List
In my recent article, "The 5 Employees You Need to Hire to Grow Your Brokerage in 2021," I provided an employee organization chart divided into sales and operations. Similarly, your brokerage procedures manual should cover the following procedures:
Sales Procedures
These tasks fall under the responsibility of employees supporting the sales side of your brokerage.
- Agent Support Communications Schedule
- Team Meeting Schedule
- Continuing Education Schedule
- Agent Recruiting Plan
- Agent Onboarding Plan
- Agent Off-boarding Plan
- Lead Management Advertising Plan and Budget
- Lead Management Plan
- Agent Accountability
- Brokerage Marketing Plan
- Community Involvement
- Advertising Plan and Schedule
- New Agent Training
- Structured New Agent Training Plan
Operations Process & Procedures
These tasks are the responsibility of employees supporting the operations side of your brokerage.
- Office Management
- Agent Split/Fee Management
- Commission Disbursement Process
- Agent Billing Process
- Escrow Accounts Management
- Financial Review and Management
- Employee Hiring and HR Management
- Annual Tax Filing Plan
- Agent/Listing Marketing
- Office Maintenance
Brokerage Procedures Manual
Now that you have a comprehensive list of procedures for running your real estate brokerage, it's essential to ensure accessibility for both you and your employees. Here are a few steps to create your procedures manual:
1. Print & Bind or Use monday.com
Consider printing your procedures manual and keeping it in a three-ring binder. This allows for easy updates, additions, and revisions without reprinting the entire manual. Alternatively, you can utilize project management software like monday.com to assign tasks, manage projects, and keep your team organized.
2. Categorize Your Plan by Roles
Organize your procedures by the employees responsible for their completion. Categorizing tasks enables quick referencing, ensuring employees know which procedures they are accountable for.
3. Lead by Example
To expedite employee onboarding, lead by example. Bring the procedures manual to employee meetings and reference it regularly. Demonstrating the importance of following procedures promotes consistency and efficiency.
4. Keep It Up to Date
Hold individuals responsible for each task accountable for keeping the procedures plan and manual up to date. Regularly review and update procedures to ensure they remain relevant and effective.
Bottom Line
To build a successful brokerage that supports agents and rapid growth, investing time in defining and implementing essential procedures is crucial. Devote attention to creating a procedures plan that aligns with your brokerage's goals, supports agents, and contributes to the betterment of your community.