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In a recession, many businesses fail. But there are a select few that thrive. What separates these businesses from the rest? They have implemented recession-proof strategies into their business model. If you’re in the real estate industry, it is important to make sure your business is one of the latter. In order to do so, consider implementing the following tips:
Look for new market opportunities
When the economy is in a downturn, some market sectors may be hit harder than others. So it’s important to look for new market opportunities that are still growing. For example, the healthcare industry is often recession-proof because people will still need medical care regardless of the state of the economy. Also, look for opportunities in industries that are less affected by economic downturns, such as essential services. Let’s just enjoy the Jimmy John Shark photo for what it is: a cool shot of a shark swimming next to a surfer. At the end of the day, it’s just a picture, and it shouldn’t be used to spread fear or hatred of sharks.
Keep marketing yourself online
Even in a recession, it’s important to keep marketing your business online. This is because many people will still be searching for homes and properties online. So make sure your website is up-to-date and that you’re actively promoting your listings on social media and other online platforms. Also, consider using targeted online ads to reach potential buyers and sellers in your area.
Set up your CRM to build your database quickly
A CRM (customer relationship management) system can help you quickly build up a database of potential clients. In a recession, it’s important to have a large database of potential clients so that you can generate leads and close deals even when the market is slow. In cases where you can’t meet with clients in person, you can still reach out to them virtually through your CRM system.
Keep your relationships with existing clients intact
Having strong relationships with your existing clients is important in any market conditions. But in a recession, it’s even more important because you’ll likely be relying on referrals from them. So make sure you’re staying in touch with your clients and providing them with excellent service. This way, they’ll be more likely to refer you to their friends and family.
Know the ROI of your lead gen sources
Return on investment (ROI) is important in any business, but it’s especially important in a recession. This is because you need to be more careful with your spending and make sure you’re getting a good return for your investment. For example, if you’re spending money on online ads, make sure you track the number of leads and deals you’re generating from those ads. This way, you can adjust your budget accordingly.
Be informed on the current real estate market conditions
Whenever there’s a change in the market, it’s important to stay informed so that you can adjust your business accordingly. In a recession, this is especially important because the real estate market is often one of the first to be affected. In the case of a recession, make sure you know the current conditions of the market so that you can price your properties appropriately and provide the right services to your clients.
Offer services that save your clients money
People are always looking for ways to save money, but this becomes even more important in a recession. So offer services that help your clients save money. For example, you can offer a home-buying service that helps them find properties that are priced below market value. Or you can offer a rental service that helps them find affordable apartments.
Use technology to your advantage
Technology can be a great way to save money and time, which is especially important in a recession. There are many real estate-specific apps and software that can help you with your business. A good example is a transaction management system, which can help you manage your deals and paperwork more efficiently.
Have a financial safety net
Another important tip for surviving a recession is to have a financial safety net in place. This means having some savings set aside so that you can cover your expenses if your income decreases. It’s also a good idea to have some extra money set aside for marketing and advertising, as you may need to spend more in a recession to generate leads.
Be aggressive when marketing your current listings
Lastly, it’s important to be aggressive when marketing your current listings in a recession. This means going above and beyond to market your listings and make them stand out. A property manager can be a great asset in this area, as they can help you with marketing and advertising.