Mar. 15, 2006 Edition

The Habits of Top Closers (Part I)

Series of articles reveals best practices of Top Closers
By David Hicks

David Hicks

HomeVestors' Top Closers - those who buy the most properties - do business in a different way than the average franchisee. Recent surveys of Top Closers as well as franchisees in general revealed numerous factors that set the Top Closers apart from the rest of the pack. Top Closers, by the way, are in Major as well as Junior markets; and bear and bull markets. Their average closing ratio is 10.3%, and they buy an average of 56 houses annually.

The next several issues of The Vestors Voice® will include articles that examine some of the Habits of Top Closers. Every franchisee can learn from these articles!

Habit One: Top Closers Build a Team
Individuals do not build businesses. Individuals build teams, and teams build businesses. 

No Top Closers are working solo. The HomeVestors' franchise business is most successful when built around a team. You have probably discovered that running a franchise is a big job.  It is virtually impossible to do it alone and succeed, at least not by the standards established by HomeVestors of America.

Surveys show HomeVestors franchise offices average 2.9 persons, including the franchisee. Top Closers' offices average more than twice as many team members: 5.9! 

Why does the team make such a difference?  Part of the reason is focus. For example, when Buyers have no other job than to buy houses, they are much less likely to screen calls. A franchise owner has a lot of other duties than just buying, and may be more selective when screening calls.

Another reason building a team is so important is the health and attitude of the franchise owner.  The job of running a franchise can be all consuming, and the time for family, exercise, and recreation may suffer. When this happens, the franchise owner is less effective. The franchise owner increasingly has to choose between time with the kids, or taking the Buy Call. Both suffer in the end. Are you going to take Buy Calls all weekend, or let them go to the answering service? When several team members handle the phone calls, as is the case in most Top Closers’ offices, this choice does not need to be made.

The solution?  Build a team. Ernie Hughes, one of HVA’s Franchise Systems Managers, says his first advice to a franchisee is to hire a Coordinator and Buyer. “If a Franchisee does not have a coordinator, they do not have time to build a business.  They are too busy putting out fires. A question I ask:  'If you have a coordinator, how many more buys would you be able to make?  . . . Will that pay for the coordinator?'  In almost every case, the answer is yes.”

Questions to ask:
Are we effectively utilizing our current staff?
Do we need to add a Coordinator?
How about a Buyer?