to succeed, you need to know why and avoid the common reasons they do. According to statistics published in 2019 by the Small Business Administration (SBA), about 20% of businesses fail in the first year. Half of those that make it past the first year succumb to business failure within the next five years, and by the tenth year, only about 33% of those survive. Let's break this down in layperson's terms. Out of 100 businesses, 20 fail in year one, 80 remain, and half of those fail within the next five years, leaving 40. Out of the 40 left, only 13 make it after ten years. That's a staggering 87 failure rate. The real estate industry seems to speed up this process. According to Tom Ferry (one of the world's most well-known real estate educators and best-selling authors), in 2014, NAR reported that 87% of all new agents fail after five years in the industry, with only 13% making it. How's that for a coincidence? Interestingly enough, those statistics are becoming rather grim. This year (2021), small business survival is an even bigger worry because of coronavirus-related declines in sales. While there are a multitude of conditions that can result in a business failing, most years, the reason small companies go out of business is because they make one or more common mistake(s). According to Tom Ferry's website blog (https://www.tomferry.com/blog/87-of-all-agents-fail-in-real- estate/) The following are the top five reasons real estate businesses fail;
1. Inadequate Funds 2. Limited Knowledge of Lead Generation 3. Failing to Follow-Up With Clients
4. Poor Marketing 5. No Business Plan
3
Powered by FlippingBook