Expanding your business into a new geographic territory means more revenue, new client relationships, and an increase in business stability during market fluctuations. There’s no question that diversification of your title service offering is key to growth in the current real estate ecosystem but doing so requires careful planning. Failure to plan can lead to mistakes that create significant delays in closing, and can cost you business in the long-term.
At Spruce, we work with many companies across the real estate industry. Below are the top 3 things we hear from title companies when it comes to how and when to expand into new geographic territories.
Creating the right strategy requires careful planning and preparation. It’s important to take the time to consider your options. Ask yourself: what are my short and long-term goals? How do I develop a plan to match this vision? Consider the opportunity to acquire, build a relationship with a trusted partner, or grow organically. This is an important time to think about the workflows and technology that you will need to help support your growth. One of the many benefits of finding a trusted partner—whether through acquisition or partnering with a company already in the space—is that you will have additional expertise to help you plan and prepare for the idiosyncrasies of new geographies properly.
The United States is like 50 different countries when it comes to title and closing services. Be prepared for nuances in new geographies. If you are not prepared to address the nuances of the geographies you are pressing into, you may find yourself in a tough spot several months into an expansion initiative. This can cost you immediate revenue and long-term client relationships. Do your research and educate yourself by lining up the resources you’ll need in advance for each new market. This is another area where working with an experienced partner can help you avoid foot faults that could undermine your expansion goals.
Although it can seem overwhelming at first, geographic expansion is worth it in the end. Continuing to build upon your relationships and creating happier clients with their own happier customers will continue to drive new opportunities. The benefits will not only hit your bottom line but will make your business more resilient and less susceptible to market fluctuations.
Did this help you on your journey to determine your path forward? Do you have additional questions? If you are working to expand your title business into new geographic territories let us know how we can help.
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