One of the essential steps in building a successful real estate brokerage is developing a comprehensive procedures plan. While it may seem simple, having a written procedures manual can systematize your business, save you time, eliminate confusion, and pave the way for rapid growth. Not only will it help you set standards and objectives, but it will also enhance the agent experience and provide better outcomes for your clients.
Free Real Estate Brokerage Procedures Plan Template
Before diving into the details, it's crucial to have a solid foundation. If you're serious about starting a real estate brokerage, take the time to define and write your business procedures. To help you get started, I've created a free Brokerage Procedures Plan Template that you can download here. Let's explore how to make the best use of this valuable resource.
No Task Is Too Small for a Procedures Plan
A common misconception is that only complex tasks require procedures. However, even seemingly trivial tasks, like making coffee, play a vital role in your brokerage's success. Minor oversights can accumulate and lead to significant failures.
Consider a scenario where a receptionist is responsible for buying coffee. Without a procedures manual, they might choose their favorite organic espresso roast, oblivious to the fact that some agents find it too strong. Addressing the issue later won't prevent a new receptionist from making the same mistake. With a written procedures manual, you could specify the preferred brand, cost, and grind size, avoiding such misunderstandings.
How to Create Procedure Plans for Your Real Estate Brokerage
Utilizing a procedures plan at every level of your brokerage may seem excessive, but it will save you time and headaches in the long run. A well-crafted procedures plan consists of six features for each task:
1. Objective
Clearly define the desired outcome of each task. When objectives are measurable and transparent, everyone understands what is expected of them.
Example: The sales manager's objective is to recruit two agents per month, leading to brokerage growth and profitability.
2. Who
Identify the person responsible for completing each task. While this may not be the same person who performs the task, accountability and support are essential in ensuring successful execution.
3. How
Provide a detailed step-by-step explanation of how to complete each task. Clear instructions enable employees to follow through with minimal supervision, streamlining efficiency.
4. Frequency
Specify how often each task needs to be completed. Whether daily, weekly, monthly, or annually, clarity regarding task frequency prevents oversights and ensures timely completion.
5. Standards
Establish quality standards for each task and define how they will be measured. Even seemingly simple tasks, such as answering phone calls, require clear guidelines for maintaining professionalism.
6. Budget
If a task involves expenditure, establish a budget and outline spending limits. Provide guidance on when approval is necessary, fostering financial responsibility.
Example Procedures List
In my recent article, "The 5 Employees You Need to Hire to Grow Your Brokerage in 2021," I outlined an employee organization chart based on sales and operations. Here, I'll do the same for the typical procedures you should include in your brokerage procedures manual:
Sales Procedures
These tasks fall under the responsibility of employees supporting the sales side of your brokerage.
| Category | Processes & Procedures | Frequency | Responsible |
|---|---|---|---|
| Agent Support | Communications Schedule | Bi-weekly | Sales Manager |
| Team Meeting | Schedule | Weekly | Sales Manager |
| Continuing Education | Schedule | Quarterly | Sales Manager |
| Agent Recruiting | Plan | Weekly | Sales Manager |
| Agent Onboarding | Plan | Weekly | Office Manager |
| Agent Off-boarding | Plan | Weekly | Office Manager |
| Lead Management | Advertising Plan and Budget | Monthly | Lead Manager |
| Lead Management | Plan | Weekly | Lead Manager |
| Agent Accountability | Weekly | Sales Manager | |
| Brokerage Marketing | Plan | Community Involvement | Monthly |
| Advertising Plan and Schedule | Monthly | Sales Manager | |
| New Agent Training | Prelicense Education | Quarterly | Mentor |
| Structured New Agent Training Plan | Quarterly | Mentor |
Operations Process & Procedures
These tasks are the responsibility of employees supporting the operations side of your brokerage.
| Category | Processes & Procedures | Frequency | Responsible |
|---|---|---|---|
| Office Management | Agent Split/Fee Management | Monthly | Office Manager |
| Commission Disbursement | Process | Weekly | Office Manager |
| Agent Billing | Process | Monthly | Office Manager |
| Escrow Accounts Management | Daily | Office Manager | |
| Financial Review and Management | Monthly | Owner | |
| Employee Hiring and HR Management | Weekly | Office Manager | |
| Annual Tax Filing Plan | Annually | Office Manager | |
| Agent/Listing Marketing | Agent Marketing Support Plan | Monthly | Marketing Manager |
| Listing Marketing Plan | Daily | Listing Manager | |
| Office Maintenance | Coffee and Supplies | Weekly | Receptionist |
| Printing and Copy | Weekly | Receptionist | |
| Cleaning and Repairs | Weekly | Receptionist | |
| Landscaping and Snow Removal | Seasonally | Receptionist | |
| Security | Daily | Receptionist | |
| IT Support | As Needed | Receptionist | |
| Agent Supervision | File Compliance Process | Daily | Transaction Manager |
| Broker Contract Review Plan | Daily | Managing Broker | |
| Industry Changes and Updates | Communications Plan | Monthly | Managing Broker |
| Broker Question Process | Daily | Managing Broker |
Brokerage Procedures Manual
With a comprehensive list of procedures and the daunting task of detailing each one, it's essential to keep them accessible to you and your employees. Several solutions exist, including project management software like monday.com for assigning tasks, managing projects, and keeping your team organized, especially if your brokerage is virtual.
For a low-tech alternative, consider printing and binding your procedures manual. This method allows for easy updates, adding new sections without reprinting the entire manual.
Steps to Create Your Procedures Manual
1. Print & Bind or Use monday.com
Print your procedures manual and keep it in a three-ring binder. This approach allows for easy updates and additions without reprinting the entire manual. Alternatively, utilize project management software like monday.com for a digital solution.
2. Categorize Your Plan by Roles
Organize your procedures plan based on employee responsibilities. Categorizing tasks enables your employees to quickly access the procedures for which they are accountable.
3. Lead by Example
To expedite the adoption of responsibilities by new employees, lead by example. Bring the procedures manual to employee meetings and reference it regularly, emphasizing the importance of adherence.
4. Keep It Up to Date
The person responsible for a task should also be accountable for updating the procedures plan and manual when changes occur. This practice ensures that procedures are followed and remain current.
Bottom Line: Invest in the Future of Your Brokerage
To build a successful brokerage that supports agents and facilitates rapid growth, it's crucial to define and implement effective procedures. By devoting time now to consider and establish the necessary procedures, you'll create a solid foundation for your brokerage, agents, and community. Don't delay - your procedures plan is the blueprint for your brokerage's success.
