Opening a real estate franchise has been a thriving and successful business model in South Africa for decades. Despite the challenges currently facing the South African economy, property will continue to prosper and provide entrepreneurs with an opportunity to own their own successful businesses and become leading members of their local business communities.
“The residential property market is a dynamic, thriving industry offering substantial career opportunities. Joining a property franchise business gives entrepreneurs the opportunity to align themselves with reputable, established businesses with a national footprint who have invested in their brands and have access to international networks,” says Russell Berkman, Franchise Director at Jawitz Properties.
What are the top 3 things that potential property franchisees should consider before entering the industry?
- You need sufficient start-up capital as the initial investment in starting the business and the monthly expenses to run the business can be substantial. The income from sales and rentals may be slow in the early years, hence the need for good planning and sufficient start-up funds.
- Owning one’s own business means the buck stops with you! A well thought out and well implemented business plan is key. The first 2-3 years consist of long hours, and could potentially be financially strained, as in any start-up business, but the rewards of owning your franchise and being ‘master of your own destiny’ are worth it!
- This is a tough business for tough minded people. Having an initial mindset of ‘it is harder than I think’ rather than ‘it will be smooth sailing’ is a better approach and will prepare the franchisee for the hiccups that will surely come along.
In your opinion, why does being a property franchisee make good business sense?
The end result of being a successful property franchisee is financial security. Owning a brand office assures the owner of having an asset. The credibility, back-up and brand promise assures clients they are in safe and professional hands. I would definitely recommend being part of a major brand rather than a being a small real estate entity, especially in this competitive industry.
Property is a challenging industry that, like everything else, goes through cycles, influenced by factors like inflation and interest rates, among others. Drive, initiative and resilience are therefore essential qualities for a successful property franchisee. Absolute professionalism and integrity and a fierce determination to exceed your client’s service expectations are essential.