Since the focus audience of WorkPuzzle is real estate industry leaders, owners, and managers, readers often tell me that they’ve used our blog content as discussion topics for their sales meetings. Many of the topics we cover can be adapted to help agents perform at a higher level.
If you haven’t thought of doing this yet, try searching a topic on WorkPuzzle.com (right side of the
website, next to the search button). There are more than 600 articles we’ve written over the last few years.
To get some ideas flowing, I’ve found an article that could be very helpful in teaching your agents to think like entrepreneurs. It was originally written by Brett and Kate McKay and published on their popular blog.
The article highlights some lessons the authors gleaned from the popular television series Shark Tank. If you’re not familiar with Shark Tank, it is a show where aspiring entrepreneurs get a once-in-a-lifetime opportunity to pitch their business ideas to a panel of “sharks” — five self-made millionaires and billionaires and ask for funding in exchange for equity in their businesses.
Here are some excerpts from the top three lessons that I believe apply to real estate agents:
Learn how to pitch. If there’s one lesson you take from Shark Tank and this post, let it be this: master the art of the pitch.
Even if you don’t think you’ll ever find yourself standing in front of a bunch of venture capitalists, every entrepreneur needs to know how to effectively sell himself and his idea to his potential partners, employees, and clients/customers.
You’d think on a show like Shark Tank — in which people know they’ll be asking for tens or even hundreds of thousands of dollars on national television – the entrepreneurs would prepare for their pitch like crazy.
But you’d be wrong.
I’d venture that 50% of the pitches on Shark Tank are absolutely horrible, 40% are so-so, and 10% are stellar. Some of the folks on Shark Tank just seem like they’re winging it, which makes for some awkward, yet entertaining moments.
If only 10% of Shark Tank participants are able to make good pitches, do you think some of your agents may be doing sub-par pitches to their clients? I think you could bet on that.
I’ve heard from several sources that the best pitch ever done on Shark Tank was by an 18-year-old girl who owns a skincare company called Simple Sugars. It might be worth buying this episode and using it as a case study. (Season 4, Episode 19)
Know your business. Mark Cuban once said, “Know your business and industry better than anyone else in the world.”
You need to know your numbers — sales, cash flow, debt, margin, and so on. The sharks often hesitate to make a deal with entrepreneurs who don’t know important data points like their customer acquisition cost.
But knowing your business extends far beyond having a handle on your numbers; it requires a deep understanding and grasp of the industry you’re competing in. Lots of entrepreneurs come on the show pitching a product or service they think is truly unique, only to be informed by one of the sharks that a very similar product or service already exists. If they had done just a bit of due diligence, they could have avoided that embarrassing “surprise.”
A perfect example of entrepreneurs who came on "Shark Tank" without really understanding their industry (or even business) was a pair of doctors pitching a social network for their fellow MDs called Rolodoc. The docs had no clue how social media worked, or even what it was, despite the fact that their business idea would supposedly revolve round it. Consequently, they stumbled over even very basic questions about how their idea would be executed and how it would actually make money. Mark Cuban called it the worst pitch in "Shark Tank" history.
Do your agents really know their businesses? This is a great way to breach this topic without coming across as overly critical. You can buy this episode also (Season 5, Episode 1).
Concentrate on your core competency. Sometimes an already successful business will enter the tank seeking more capital to expand and grow. Nothing wrong with that. The problem arises when one of these companies wants to use that money to expand into a somewhat related product line or service that detracts from their original core competency.
Most of the sharks are leery of these businesses and will often tell the entrepreneur that they’ll only invest if they drop their plans for the expanded product line. Why would they want their money funneled into an untested product or service instead of being used to boost a proven winner?
It’s good to experiment and try different things in business, but never lose sight of your core competency. Getting sidetracked has been the downfall of many a business. This is especially true with the volume and ease with which you can get feedback on social media these days; you might hear from a bunch of folks who say, “I wish you guys would make this too!” leading you to believe there’s a popular demand for a new expansion in your business. Then it turns out that those commenters actually represented a very small but disproportionately vocal minority.
Know what you’re good at and stick close to it.
These are good lessons for any businessperson. They are especially helpful for real estate professionals because the best agents are entrepreneurs at heart.
Editor's Note: This article was written by Ben Hess. Ben is the Founding Partner and Managing Director of Tidemark, Inc. and a regular contributor to WorkPuzzle.
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