Your real estate business has more money than you realize. You just don’t know where to find it…yet!
In this article, we tackle the common misconception about expenses when it comes to creating a profitable business: “I must spend money if I want to grow!”
We will just flat out say it: this kind of thinking is what prevents business owners from not only benefiting from their hard work and ingenuity, but stunting their growth altogether.
Money is everywhere. Money can always be found through streamlining and innovation, and that begins with asking the big questions. The impossible questions. The questions no one else would ever dare to ask. No one else but you!
Learn Efficiency 101
Truth bomb: focusing solely on top-line thinking (sales, sales, sales!) does not lead to profitability! In fact, more sales, without efficiency, lead to further inefficiency. In other words, more sales make you less profitable. It’s a vicious cycle!
Efficiency increases your profit margins, or the amount of money you earn as profit on each product or service you offer. Increased profit margins will boost your company’s profits without the need for increased sales. And then, when you kick the selling machine into gear, profits will skyrocket. So the method is simple: achieve greater efficiency first, then sell more, then improve efficiencies even more, and then sell even more. Over time, speed up the back-and-forth between efficiency and selling until they begin to happen simultaneously.
Chip Away At Expenses
Instead of “finding more money” to cover your expenses (a.k.a. sell more), you must focus on figuring out another solution. Plainly put, you must learn how to make more by using less!
By cutting expenses and streamlining systems, you will find money in your business. Now, that’s not to say to slash and burn everything you have worked hard to build! You can take it slow – but just as long as you get started. In your real estate business, this may look like eliminating unprofitable expenses like marketing fees and subscriptions or maybe even letting go of clients who eat up your profit margins.
Remember, it’s all about improving not only the top line, but the bottom line, too.
Sales without first putting efficiency measures and systems in place is a dangerous game that only leads to bigger expenses and fewer ideal clients.
As the variety of things you do increases, you need to buy more to support these new offers. But the reality is that none of these new resources gets used to its maximum potential because you do many different things, not one thing. In fact, you get stuck in the Survival Trap and end up not doing a very good job at any one thing.
Applying efficiency strategies to your top line – firing bad clients, cloning the good ones, refining your offering to get the most out of your resources and then selling smart- is a surefire way to increase your profitability.
How are you finding money in your real estate business?
Need help discovering how you can get two times the results for half of the effort? Check out our profit coaching program!