How to Build a Scalable and Sellable Business w/Jack Cotton
Many people equate a business that runs systematically with being the McDonald’s of real estate. How should we think about systems in the business? How can you bring value so that your brokerage does well? Why is it so necessary to execute on your value proposition well? On this episode, we are joined by Jack Cotton who shares how he’s been able to build long-term success and a business that goes the distance.
"The more you can create systems that make the agent’s life easier, the less turnover you’re going to have in your business." -Jack Cotton
Takeaways + Tactics
- Most people who want to buy teams won’t want to buy a C-corp. They’d much rather buy an S-corp because they want to do an asset sale instead of a stock sale.
- Vacation markets with longer seasons typically do well.
- Real estate agents are always going to be relevant.
At the start of the show, Jack shared how he manages his team and gave some background information on selling it. Next, he gave us some information on the Cape Cod market and other vacation markets. Jack also talked about how his team adopted technology early, and one of the biggest things agents get wrong about the business.
We also discussed: - Valuation of teams vs. brokerages - How to deploy capital so you can keep getting a return after selling your team - Why creating systems reduces turnover
Some people in real estate don’t understand the importance of having a value proposition. Not only is it critical to have a value proposition, but it also must be clearly communicated and executed. Too many brokers fail to offer great value to their agents and their clients, and can’t get people to stay. It is necessary to have a clear value that you bring to the market, because that will attract people more than any splits and commissions.
Jack Cotton is a Luxury Real Estate Expert, Agent and Author. He founded Cotton Real Estate, now Sotheby's International Realty, in 1974 and has overseen thousands of purchases and sales of Cape Cod properties. Go to http://www.jackcotton.com/ for more information or to buy his book.