Key topics covered in this issue:

1
Estate Agent Newsletter
Issue 1
Key topics covered in this issue Streamlining
your business Why are so many estate agents
characterised by fire-fighting and uncertainty
as to where the business is going next? Its
time to move beyond the entrepreneurial
approach. Information Technology is it making
money? It's easy to spend large sums on new IT
systems. But installing the system wont make
you money the key is how the system is used
and having the courage to change the way
you operate.
2
You cant afford to run your business like an
entrepreneur There are many hugely positive
things about the estate agent industry. There is
high energy, personal dynamism, optimism, dogged
determination and an appetite for risk in a
cyclical industry. But why is it that many of
the aspects of other, more stolid industries are
not typically brought to bear? Why is it that
estate agents repeatedly demonstrate the
following sorts of behaviours fire-fighting too
little time for reflection, revenue generation
and planning too few staff not enough
delegation expensive people being underutilised
lots of ideas for business growth, with no firm
decisions and uncertainty over where the
business is heading? The business plateau Its
to do with the nature of the business. It
attracts entrepreneurs people who like dealing
with people, like challenges, aspire to bigger
and better things for their business.
Rainmakers, who want to go out there and make it
happen. And yet once the business is set up,
and once its established, it needs a different
set of skills to keep it moving forwards. But if
the business doesnt change the way it operates,
it is going to get stuck at the level its at.
And this is a common affliction for estate
agents they reach a plateau, and cant get
beyond it. Getting stuck around the campfire The
trouble is that there is no obvious burning
bridge to force the management to change their
ways. But without realising the need for change,
things will simply perpetuate themselves, with an
inefficient but overworked staff in a business
that is treading water. A few tough questions
will produce interesting answers what are the
key people in your business actually doing? Are
they focused on doing the things that actually
make money or have you got people doing things
that a far less expensive person could do?
Crucially, are your hunter-gatherers being
allowed to hunt or are they stuck by the
campfire, supervising paperwork? How much
duplication or unnecessary activity is going on?
Do you sometimes look around you and wonder how
on earth you have started acting like youre the
size of IBM? It wont change by itself You need
to get tough on time and effort. Free up
management time. Be rigorous with the things
that tie up peoples time and money ask Why
do we do this? and Should we be doing this?
Agree the new processes and then make sure
people get paid for following them dont forget
that people do what they think they will be
rewarded for. No time to do this? Of course
theres no time to do this thats why youre in
this spot in the first place! The best advice
is make time now, and you will save time later.
And you will also be a better-run and more
efficient business, ready to start the upward
movement again. And thats what its really all
about, isnt it?
3
Making sure your IT is making you money Dont
blame the IT salesmen. The problem is rarely to
do with the technology its the people that use
it, the people that bought it and the people
that decided they needed it in the first
place. The oldest story The oldest story in the
book is the one that says that a new IT system
will fix all your problems. It wont itll
simply make the problems you already have run
faster. So here are a few basic rules to avoid
disappearing down the same misguided track as
certain industries youd probably rather not be
associated with the big banks, the big
supermarkets, and the petrol companies. Before
you start Before you open your cheque book, make
absolutely sure you need that new system. Is it
simply that you havent been making best use of
what you have already? There are myriad cases
of companies who bought a new system and gave
it to the same people who failed to use the last
one properly. There are three golden rules for
any service company wanting to manage a customer
base more effectively
1) Enter the data properly If the staff dont
have the time to enter customers details
correctly, cant be bothered, or dont think it
matters, you will produce a database that is
worse than useless it actively damages
customers impression of you by making you look
incompetent.
2) Prioritise it The trouble with data is that
theres so much of it. Not all customers are
equal, and you must be able to identify the most
important to your bottom line. If you dont,
every bit of effort (people, marketing spend, IT
development time) will be diluted across
customers that are B or C league leads.
3) Use it cleverly We all despair of how inanely
our own data is used by some big organisations.
Make sure youre not falling into the same traps
give it to your best, cleverest and most
people-sensitive staff or your customers will
wonder what on earth your business stands for.
Remember data only really works when it is
combined with good salespeople. Bridge that gap
select your data users carefully, and train
them so they really understand what theyre there
to do.
A final word Dont let your IT systems off the
hook. You dont need to understand how your IT
works but you have a responsibility to ensure
that it is delivering what its supposed to.
Youre not in the efficiency business, after all
youre in the sales business. The way to make
your IT perform is to tie it to the bottom line
of the business. If you are certain that it is
contributing to sales unquestionably,
contributing to profit then youre on safe
ground. If you cant, its time to get tough on
the users because using data systems correctly
separates real profit generators from mere hard
workers.
4

• Summary key questions for your business
• Has your business reached a plateau?
• Have your rainmakers got the space to operate
  effectively?
• Can you say that your processes are efficient,
  and dont waste money?
• Are you really sure you need that new IT system?
• Do you enter data correctly, and focus data
  efforts on your key customers?
• Are you putting data in the hands of your best
  sales people?
• Can you measure what your IT systems are doing
  for your sales?

• In Future Newsletters
• Get tough on marketing spend making sure its
  bringing you instructions
• Moving your brand upmarket taking on the
  upmarket chains in your area
• Improving your financial services performance
• Better local marketing using databases and
  direct mail
• What do customers really see? Using research
  properly
• Planning your exit succession planning,
  continuity and business sale

About Mungo Dunnett Associates Customer loyalty,
relationships, marketing, sales and service are
being wasted because companies cannot determine
their monetary value. We deliver four things
that are vital for businesses, but are typically
difficult to accomplish 1) A clear
understanding of where your profit lies
2) The creation of lasting and profitable
customer relationships 3) Clarity for
your business 4) Efficiency for your
business We are not career consultants we are
experienced line managers, accustomed to
delivering results under pressure across a range
of professional services firms. Our focus is on
ensuring that our clients activities are geared
towards the areas that are most commercially
valuable, and that they are getting the maximum
benefit from the investments they have already
made, across their operations, IT, servicing,
sales and marketing. For further information
visit our website at the address below.
Mungo Dunnett Associates 9 Ormidale
Terrace Edinburgh EH12 6DY Tel [phone]
Email info_at_md-as.com www.md-as.com