How an Eastern Cape entrepreneur is ready to conquer the franchise frontier

XT Properties, the brainchild of Eastern Cape entrepreneur Xoliswa Tini, celebrates its 22nd anniversary with the announcement that it will franchise its real estate business, initially in the Eastern Cape and later expand to South Africa’s main metropolitan areas.

It’s an exciting time for the business and Xoliswa, who has been nurturing the idea of expansion since 2018. Since then, she has expanded to Gauteng, with mixed results, but the challenges have convinced Xoliswa that ownership is preferable to having the management team manage day-to-day operations.

Xoliswa remains unrepentant about her core mantra for creating a business, which involves resourcing it with previously disadvantaged individuals, providing training opportunities for those who wish to join the sector, or owning a lucrative business that can employ others.

“The real estate model has created a circle of life for black people in real estate”, she says.

But with only a handful of black real estate agents in South Africa – 8,000, Xoliswa estimates – the property sector has not undergone significant transformation in the last 30 years, and the number of operating agents is still well below the Property Sector Transformation Charter’s target of 35%.

Xoliswa has firsthand experience of the challenges hindering transformation.

The historical challenges, she says, need to be overcome, and there are no easy solutions.

The result is that most who enter the market either do not last or struggle to survive. Some operate unofficially without proper licensing and qualification. This means that trying to stay afloat financially until their first sale is a bridge too far for many first-time entrants.

Unsurprisingly, only a handful of role models, like Xoliswa, understand these challenges. However, this has inspired Xoliswa to play a role in sharing her experiences and knowledge so that they can seriously consider real estate as a career.

Not only did she establish a training academy for property practitioners in 2018, but she also believes that her story serves as a strong motivator for young Black entrepreneurs and property enthusiasts who understand that there is money in bricks and mortar.

Xoliswa is upbeat about her track record as a successful property entrepreneur and how it has enabled her to navigate the franchise market successfully.

“The XT Properties brand puts itat the forefront as a role model. It has also enabled us to operate successfully for over 22 years,” she explains.

“We are well-equipped to dispel the myth that our background disadvantages us as business owners in real estate.”

Xoliswa says that new entrants should be cognisant of the rigidity of the real estate sector, which is built on long-standing relationships. Real estate agents must possess a robust arsenal of confidence and skills to leverage existing relationships and create new ones, thereby succeeding and establishing a successful business that recognises that you are dealing with someone’s valuable asset.

“This may be new territory to young entrepreneurs, but I can assure you the value-adding relationships of mutual respect can be built,” she explains.

Right-sizing XT Properties for its franchisees

Xoliswa says that she has reviewed the business processes, revised its branding to reflect the brand as “we advance and inspire our entrepreneurs in building successful offices. We have also intensified our marketing and training efforts. Beyond preparing ourselves for the franchise wave, it is creating a new impetus for our business.”

Targeted prospects

XT Properties recognises that not all entrepreneurs begin from the same starting point.

“Our agency has humble beginnings and has evolved from the lowest earner to the highest. We aim to empower franchisees to make informed choices and trade with confidence, guided by their levels of expertise. Intensive training to acquire soft and hard skillswill enable a new owner to manage a successful business effectively.”

“Beyond these fundamental skills, I also want to share how I improved my experience and industry knowledge and built my confidence. Let’s not forget the historical roadblocks, and I will share how I navigated these, too.”

“I can’t speak for other franchisors, but at XT Properties, we committed to training inexperienced individuals to a level where they can open a franchise. In addition, XT Properties’ franchise is attractively priced. In this way, we are putting our money where our mouth is to give access and build a legacy of successful Black real estate agency owners.

“I am playing the long game in selling these franchises. I do not want to sell many. My ideal outcome is to open one or two agencies that employ six agents and achieve a healthy profit. Then, I will have achieved my dream, and the rest will be part of history.”

Economic Growth

Xoliswa notes that the property sector continues to play a significant role in generating livelihoods for individuals involved in the property market. Hence, the performance of the property sector is paramount.

A significant catalyst for the Eastern Cape’s sterling performance is semigration. The Eastern Cape offers good value across all property types. It offers an appealing lifestyle and economic opportunities for homeowners in all life stages.

Indicative of the province’s better-than-expected performance is BetterBond’s data for the 12 months ending in March, which shows that the province’s bond approvals for first-time buyers rose by 3%, with the average purchase price of a first home increasing by 3%.

For more information on the XT Properties’ franchise, click here or send an email to charlene@xtp.co.za.