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We help real estate agents.
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Welcome to Hire LAB
We help real estate agents.
Everything you need to hire, train and develop your administrative team.

Fiscal Vitality: 7 Tips for Foundational Habits in Real Estate

real estate finance

Whether you are a brand new or experienced agent, taking your business to the next level will take time, attention, and a whole lot of gumption. It also takes financial and operational planning.

Few will teach financial and operational strategies. Yes, sales production is key as it generates the income and life blood for the business. But what about when the money shows up? How will you sustain and manage increased production levels which you’ve worked so hard to get, all while now managing the increased flow of money and resources to your business and personal life?

It’s your business, please treat it like one.

Here are 7 tips for foundational habits in real estate that will create fiscal vitality and support you at any level.

1. Have a separate business checking account.

All business income and expense go through this account. If you are not using a separate account for your business, you are losing money and time. This allows you to clearly see if you are profitable and where your business expenses are going.

2. Have trusted advisors.

In addition to your sales coaches, make sure to engage with a CPA and other trusted professional. Along the path to more success, you will need sound, up to date advice on how to keep more money in your business pocket.

3. Know your numbers.

You are tracking calls, sales, clients and marketing. But, but do you know what it takes to break even? Do you know what your variable and fixed costs are in your business? Tracking your business expenses is key to knowing your profitability and thereby knowing what kind of sales you need to break even

4. Have a plan.

Creating a business plan is essential in sustaining a profitable business. Create the plan based on where you want to be in 1-3-5 years. The plan should also include staffing and financial requirements for growth.

5. Review your income.

On a weekly basis, set aside 1-2 hours to review your income and outflows and what is coming up the next week. As a small organization, you may only need 1-2 hours per month. Setting the habit of knowing where your finances will support you at every level.

6. Have a reserve account.

In addition to keeping at least three to six months of business expenses, include at least three months of payroll costs. Not only does this give you peace of mind, but it also allows you space to make decisions if the market is changing. If necessary, start small and grow it with every transaction closed.

7. Invest in yourself and your people.

As you continue to grow your business, there are topics and things that you need to know. Never stop learning. Encourage your staff to continue to learn new things and allocate this in the budget. What you need to know at 10 transactions is different than what you need to know at 50. What you need to know before you hire someone, is different than when you have additional staff.

By implementing foundational operational and financial strategies, we create peace of mind and stability to the organization as it continues to grow.

These days a big focus is on staying healthy physically and mentally. Fiscal vitality should also be on the list. Who wants to just get by, when we can have vitality in our financial life as well?

Want more Jolene? Learn how to build systems that every agent needs in her recent interview on Offer Accepted.

fiscal vitality

JOLENE MCDONOUGH

President | SYSTEMS SUCCESS, INC.

Continue the conversation with Jolene here.

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