Real estate agents are too busy to handle every single task the job demands. That’s why efficiency, delegation, and streamlining are so important! However, it usually takes some money to set these types of processes up well. Do you know how much money you are actually spending on your real estate business every month? What about how much money should be going where? Knowing where to invest your money and where to hold off is key in creating a booming real estate business. In this blog, I will show you three key steps to get a hold on the finances supporting your real estate business and make a plan for success.
Take into account every dime that is helping run the machine of your real estate business. Write down each individual expense and add it all up to get a grand total. Find out exactly how much you are spending on the following:
Leave out ordinary, personal expenses such as the cost of gas you’re spending driving to and from showings, personal gifts to clients during a closing, a drone for aerial footage, etc.
This might feel a bit tedious and even like a waste of time at the beginning. But keep the end goal in mind! Your money is hard-earned. You want to know where your money is going and decide where it should go. Use a spreadsheet to make a list of everything you’re spending money on and do the math to get an exact number. Make sure that number is able to give you a clear picture of your expenses by notating if this is a one-time or recurring expense. Consider organizing your spreadsheet in a way where you can view exactly what you are spending in a month, in a quarter, and in a year.
You don’t have to do it all in one sitting, but make sure you have some uninterrupted time set aside for this step. Look at each expense and spend some time reflecting on its importance. Thoroughly inspect each item and see where changes can be made to save you some money. For example, are you paying an hourly assistant to do a job that can be automated by a program that charges a one-time fee? Take a deep dive into each expense and ask yourself the following questions:
A helpful starting point might be to rate each expense from 1-5 with 1 being the least important to 5 being the most important. For example, keeping your real estate license up to date is more important than a monthly subscription on the latest market trends for real estate agents. When you’re able to identify which expenses are the most important, you can have a starting ground for where to make changes. You might even notice some of your expenses aren’t helping you succeed, or you can afford another expense to meet a new or modified goal. Don’t be afraid to ask a trusted agent for help if you need to!
After you’ve taken your expenses into account and analyzed them, it’s time to apply your revelations for your finances and take action to make changes where you can. It’s not necessarily about cutting your expenses, but instead investing in what will help grow your business most successfully.
This can be a daunting task. And the old saying holds true, “you don’t know what you don’t know.” So how can you do this correctly? Ask an expert like me!
I hate seeing real estate agents who are lost when it comes to their finances and wasting money on unnecessary expenses. I have helped many real estate agents over the years invest in the right areas to help their careers skyrocket. That’s why I am offering something special in regards to this topic.
I would love to provide you with a 30-min complementary zoom call. Let me take a look at your business and come up with several actionable steps to help your career grow! Together, we will go through the three step process outlined in this blog to make sure it’s done right. Connect with me today by visiting my website here!
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Real estate agents are too busy to handle every single task the job demands. That’s why efficiency, delegation, and streamlining are so important! However, it usually takes some money to set these types of processes up well. Do you know how much money you are actually spending on your real estate
