Timeless Business Principles…Still Timeless

A short video to get you in the mood for this entry….

 

Timeless Business Principles…Still Timeless

 

When did we stop caring about profit in the real estate industry? Did we ever start? A better question might be, “Do you look at real estate as a business?” What is the most important business principle that you can learn in an economic downturn? Lead with revenue, not with expense. It sounds like a simple enough concept doesn’t it? Don’t spend money that you don’t have! The “if you build it they will come” mentality is what we have all been programmed to think. I was a victim to that mentality when I entered the real estate business at the tail end of the sellers market, a mistake I’m still literally paying for today.

 

I had the honor of seeing John G. Miller speak down in Austin, Texas in May 2007. After an overly adventurous flight, I arrived at my destination just as John took the stage. Now for those of us that have never heard of John G. Miller, he is a best selling author of “Flipping the Switch” and “QBQ! The Question Behind the Question”. John is a role model for personal accountability and his message is one that has stuck with me ever since. In business, our profit margins shrink because of a lack of personal accountability. We say things like “In order to do this, I have to have that!” whether that is more marketing materials, better tools, a new suit, technology upgrades, new cars, plush offices or more staff…..they are all expenses, increased overhead and a disease that plagues your profits. So what is the alternative?

 

The question, behind the question becomes, “How can I grow with what I have today?” That’s right, a cold, hard look in the mirror that will stretch you a bit. This is where we look at things that truly make a difference for us, the foundation of our business. Things like…

• Time Management – THINK “How good am I at that?” “What is Time Blocking?”
• Sales Ability – THINK “Are my conversations purposeful, passionate and intense?”
• Lead Generation – THINK “Am I trying to buy more business by marketing through an economic downturn or am I becoming purposeful in relationships?” “How many NEW people do you talk to every day about real estate?” “How is my follow up system?”
• Leverage – THINK “Who can do this for me?” “How could it be done at ZERO cost to me?”
• What is FREE – THINK “Have I mastered the phone?” “Do I maximize email?”

 

So how are you going to move closer to your potential in the above categories? Do you see how those categories are the key to unlocking your PROFIT? There is personal growth in asking the question behind the question, growth for the long term. The road I talk about is the road less traveled, the road without the promise of unicorns, fairies and silver bullets. Don’t spend money to make money, whoever said that is backwards and bankrupt. So can we ever add tools, technology, expense, etc…..?

 

Maximize your personal potential by taking the road less traveled and then set strategic targets out for improving your tools. If you are a $3,000,000 producer get to $5,000,000 this year with what you have today… once you get there award yourself with a technology upgrade. Now hold that expense accountable to take you to the next target you set. This is the “Red Light, Green Light” method of holding your expenses accountable to proportionate results. If you spend a $1.00 it should make you at least $2.00. Whether that $1.00 is spent on a person (staff), a tool(Top Producer8i), education (Camp 443), etc… it should always put $2.00 back in your pocket. You don’t add another expense until you figure out how to make that happen.

 

Leading with revenue is taking away excuses for mediocrity, causes us to stretch ourselves and in the end ensures our profit. Take a look at your expenses, have you held them accountable to results? Have you looked in the mirror lately and asked, “How can I improve myself?” Do you just tend to throw money at your business in hopes that there is an improvement? This all leads to the question of the day…..Regardless of what level you are producing at, how much profit do you have at the end of the year? Look in the mirror and watch your profits, they matter!

 

If you would like a no obligation consult on “Leading with Revenue” and “Personal Growth” simply give me a call or email me today.

 

Sincerely,

 

Brett Boettge

Team Leader | CEO

Keller Williams Realty – Madison Crossroads

608.661.7000