If you are a real estate agent you either totally agree with this title or it irks you! If you are not an agent, you are probably giggling because you don;t think of your agent as a savvy business owner. Well, agents are business owners and the best ones, see themselves as a business owner first!
Business owners see their business as more than just transactions and commission. They see it as a company that they pay themselves from but also that will grow to create a lasting foundation to grow on!
Let's talk about costs for a minute. Today's agent has broker fees, business cards, signs, lockboxes, marketing, MLS fees, and more in pure costs before they even sell one house! Then, if you create an LLC, you have costs associated with that, too! Add in a website, custom URL, email, cell phone... you get the point!
When a house is sold and an agent receives a commission, they reimburse themselves for all of these costs. However, an agent focused on growing a business thinks about their commission differently. These agents plan where their commission will go! They set a budget for categories such as marketing, personnel, their salary, insurance, office, and more. This allows the business owner to plan for the needs such as hiring a part-time assistant and eventually a full-time assistant.
Smart business owners, in general, do not spend all of the revenue. They re-invest some the revenues in their business to help them have the cash to grow! Cash is still king and credit/loans burden the small business!
You want to be able to create a custom website? Outsource to a social media expert? Hire a part-time assistant?
Take a small % of your revenue and set it aside to help you save for that! Then, do it! The Return on the Investment (ROI) in outsourcing these things will be amazing! You focus on the 20% that brings you 80% of your profits and your partners do the rest!
Lead with cash and plan for the future!
Hilary understands what it is like to balance family, business, and purpose. She has a growing business, 3 kids, a marriage and is involved in her community. She wants to connect people to the right resources.