So You Survived 2009
Last year was my 25th year as a commercial real estate broker and it certainly was one of my toughest years. The worst year in my career closings was 1990. The worst year in my working life was 1976 but in hindsight, it was also my most rewarding year because by surviving it I learned so much.
Cycles in business happen. We all know it but we never prepare for it and never take the necessary steps to succeed in one, whether we enter a positive cycle or a negative one. Most of us do not see a cycle coming and then there are those who see a cycle change coming but rarely allow ourselves to actually make the necessary changes to our business to deal with it.
If you started 2009 as a commercial real estate broker and ended 2009 as one, Congratulations, you have "potentially" survived. I say potentially because 2010 holds a great deal of uncertainty as well. Business activity is improving but actual deal flow is still down for virtually all businesses. The jobs report continues to be a real concern and without true job growth the economy will not expand greatly any time soon.
An experienced broker friend of mine recently reflected that the difference between (1991) the last major full economic downturn and this severe recession (2009) is that back in 1991 he was young and could live on pretzels and beer, now with a family and large financial obligations he has entered 2010 with much more concern and conviction to succeed. He also indicated that it would the veterans that will ultimately survive while the younger inexperienced salespeople will leave the business. Once business comes back, the veterans will be full of business opportunities and businesses will start hiring younger salespeople to take the load of smaller deals while the veterans work on larger deals.
I disagree in some cases with that thought. Veterans that are used to success in most cases do understand what it takes to succeed but how many of them are ready to go back into the trenches - because that is what it's going to take. Sales are going to be tied to smaller deals. Is a veteran prepared to do a 1,500 square foot deal and properly service that client?
The inexperienced younger agent may in fact be the survivor in this market. I started at the beginning of a down market in 1984 and did not know what a great market was. I just worked my business and succeeded. My early years in a down market would be considered solid years, even in a good market. So, market conditions do not necessarily always equate to results.
In 2010, agent training as well as creating a business plan for yourself and staying with your plan is more critical than ever. It could be the difference between still being in this business or not when 2010 comes to a close.
- Hans Hansson, Starboard Commercial/TCN Worldwide