Succeed No Matter the Season: How to Survive Fluctuations in the Title Industry
Nearly all business owners experience natural ebbs and flows of their industry and must learn how to navigate times of slower productivity. However, entrepreneurs who open a title company quicky learn that theirs is one of the few year-round industries that weathers significant fluctuations in volume annually.
As the housing market transitions from its bustling warm-weather season to the quieter colder months, title companies can see their volume drop by as much as 50%. How do successful title companies overcome such drastic fluctuations? It starts with shifting your approach from “It’s a slow time” to “It’s an opportune time.” And by doing that you can succeed no matter the season.
Four Ways to Bolster Your Title Business Year Round
During periods when less people are buying homes and obtaining mortgage loans, your title company doesn’t have to go on hiatus. In fact, the slower pace offers an opportunity for you to “weatherproof” your business. In other words, you can make the most of the slow season by adopting strategies that will help your company maximize the peaks and mitigate the valleys. Here’s how:
- Capitalize on the high periods to fund the lows – Even during times when you’re exceedingly busy, it helps to look at the big picture and accept the fact that slower times are inevitable. Factoring these highs and lows into your yearly business forecast when starting a title company can go a long way toward keeping your staff motivated and prepared. Keep in mind: It’s just as important to minimize expenses in the low season as it is to maximize your profits in the high season.
- Manage your spending to place more emphasis on variable costs – Another way to fortify your business is to maximize opportunities with higher variable costs versus fixed costs. That way, your expenses will naturally fluctuate with the ups and downs of the market. It’s important to look at your specific industry to determine what expenses can be shifted to variable costs, but strategies include turning to outsourcing and offering commission-based pay when appropriate.
- Diversify your business with a focus on commercial title – A strong commercial title business, which has less seasonality, is also recommended to help your company through the ups and downs. Commercial real estate business remains somewhat steady during a recession, as this sector tends to be less reactive to economic downturns. As rents rise with inflation, commercial property owners may see an increase in income while their monthly payments remain largely fixed.
- Expand your networking efforts – A slower season is the ideal time to focus on your networking plan, since most title business comes through referrals. This is your opportunity to follow up on new connections you’ve made, reconnect with previous clients and use social media, phone calls and in-person interactions to stay top of mind among key players in the real estate market.
Proliant Keeps Your Business Going Strong Through the Highs and Lows
Proliant Settlement Systems understands the need to keep your business going strong no matter the season. Proliant dramatically simplifies starting, owning, and operating a successful title agency. Our private-label franchise system provides your back-office support, giving you access to an entire team of title professionals that will assist you through the entire settlement process.
When you start your title company franchise with Proliant, we provide:
- Expert Training and Coaching
- Back Office Title Research
- State-of-the-Art Software
- IT Infrastructure and Security
- Wire Fraud Safeguards
- Check Fraud Safeguards
- Escrow Accounting
- Post-Closing Duties
- Underwriter Contract Compliance
- Trailing Policy Requirements
- Underwriter Remittance and Reporting
Proliant’s turnkey title company model is the answer to variable costs. We help you during high periods so you can maintain great service to expand relationships and build upon your networks. Plus, the beauty of the Proliant model is that your costs go down as demand decreases. We give you an advantage, even during economic downturns, because Proliant gets paid only for the work you send our way. And, by providing our franchisees with production assistance, we reduce your need to employ and compensate a large staff.
Contact us today to learn how to start a title company with the most difficult barriers to entry removed.