Businesses that are just starting out often refer to themselves as startups (which is inappropriate given that startups are funded differently, scale differently, and have completely different KPIs). Take real estate brokerages, for example. An increasing number call themselves startups, but when you look at the definition of a startup, can you really call yourself one?

Small businesses and startups have very different definitions (and there’s no shame in being a small business or an “innovative brokerage”). Let’s discuss.

1. Startups have a different goal altogether.

Typically, startups are about growth. They’re designed from day one to scale extremely quickly. Small businesses are often limited by a target market or geographic location. There’s nothing wrong with that, but they aren’t scalable the same way an international software brand is. Think about scaling in terms of a beauty salon versus MatchCo, an app that uses technology to create a foundation just for you. A franchise does not a startup make.

2. Startups generally seek outside funding to accelerate growth.

Startup founders often give up equity shares to generate funds before becoming profitable. Small businesses are typically self-funded, bootstrapped into profitability, and owned by one or a select few. A small business venture is typically less risky than a startup, too. The idea behind a small business venture is profit, and you want the business to last. Startups are structured to be sold or acquired once it hits critical mass – a “startup” is temporary.

3. Startups disrupt the industry.

Think about these companies – AirBnB, Google, Dropbox, Facebook, even Apple, a long time ago. In their early days, they were startups. It was risky to invest in these companies as they were trying something new (not iterating on something like the real estate practice which is one of the oldest professions in America), but they have outshone their competitors. They disrupted the marketplace. That’s what a startup does. And it doesn’t always work. Sonitus Medical attempted to disrupt the hearing aid market. They raised almost $90 million in funding before the Centers for Medicare & Medicaid Services decided the product wouldn’t be covered. The company held an auction and closed its doors. Brokerages have experimented with paying salaries, going paperless, or having all agents working remotely – these are all fabulous innovations and iterations, not disruptions.

The takeaway

We’ve been on the forefront for over a decade of ushering in the era of indie brokerages, paperless real estate brands, and counter-culture companies, but brokerages are simply not startups, and this is not up for debate. Iteration is not innovation.

Don’t call yourself something you’re not – be an “innovative broker” and rock it, because you’re not a temporary company seeking to scale so rapidly that you’re acquired for your indisputable disruption.

And finally, don’t fall for real estate brokerages pitching themselves as “startups” when they’re misinformed and really mean they’re simply, and beautifully “modern.”

Three researchers have published an interesting study on how customer service can be improved by recognizing a customer’s stress level before a connection with your business is made.

For example, a customer can often be anxious over using a particular service, i.e., a funeral home or a lawyer in connection with a divorce. By learning more about how your clients feel when they call your business, you can better manage the customer experience. This offers your business a more effective customer base of referrals and repeat business.

The researchers identified the following steps to manage stressed-out customers:

1. Find out how your customers are feeling when they need your service.

One reason so many breast cancer facilities are free-standing, away from the main hospital complex, is because women voiced their ideas to the healthcare team designing the facilities. Women wanted coordinated care under one roof, but felt like the hospital was not a calming environment. Use your empathy to walk in your customer’s shoes to change the experience.

2. Hire not only for skill, but attitude and personality.

Employees who love their job can’t be trained. The passion and enthusiasm, even for a high-stress career like a cancer nurse or funeral director, cannot be taught. Look to bring on team members who have empathy for your customers and understand that business is all about customer service. It’s far easier to teach someone the skills needed for a job than it is to teach them to be motivated to work.

3. Study your approach to the customer’s journey.

How does your business interact with the client? From the first link online or phone call, to the payment options, what is the customer’s experience? Address the high-stress interactions by providing information about your services. For example, when calling to view a listing, what can your customer expect?

4. Give the customer more control over the service.

Dealing with a mechanic who tells you that your engine is shot is highly stressful. Instead, learn to be more specific and talk to the customer in a language that can be understood by someone without technical knowledge. Make sure your customer has one point-of-contact throughout their experience. Have a plan B in place for when that individual is sick or goes on vacation. Empower your customers through today’s technology, maybe an app that tracks the sale. There’s no excuse today for poor customer service and information.

I would highly recommend that every real estate professional read the research from Harvard Business Review. Leonard L. Berry, Scott W. Davis, and Jody Wilmet packed so much information into their report that there’s no way I could cover it all here.

This time of year is always difficult in terms of focus. We universally obsess over resolutions and try to be motivated to perfect our lives, but by this week, reality has set in and we still haven’t bought a home in Belize or lost 25 lbs.

If you’re a broker or team manager and are noticing this lethargy or discouraged state with your team, consider stepping up as a leader to get the team to refocus.

As the seasons change, so can our moods. It can be helpful to have quarterly check-ins with your team (either one-on-one or as a group) to discuss current methods, trends, what’s expected on either side, and what can be improved.

This form of open communication helps employees de-stress and may help them recharge and regain motivation. Another communicative form can be found in surveys.

Sending check-in surveys via email to your team to assess their feelings of the workload, the market, and to voice any concerns they have – it can be a great way to open the door for bigger, more important conversations. These surveys can be formatted to be answered anonymously, as well.

Be sure to always be accessible and focused yourself, as you’re setting the barometer of expectation. Allowing for this open communication can let you know what can be improved on your end, which can aid in refocusing.

Another way to bring your team together is by taking everyone out for a quarterly lunch. This helps your agents to bond, while also feeling like their work is being appreciated; therefore, motivating them to keep on producing well.

At the end of the day, you can’t be everyone’s friend, soo, if you’re observing behavior that seems to be unproductive or unfocused, don’t be afraid to speak frankly. Sometimes all it takes is for that behavior to be acknowledged to convince someone to step up their game.

Remember – each team and each manager is different. The attempt to get everyone on the same page and to continuously make strides as a team can take trial and error, but it’s something to always be cognizant of to avoid issues in the future and keep sales on track.