We recently had a mastermind session in our boardroom group (the highest level at Real Estate B-School) where we rolled out a module in our online member portal called foundational tools. We were having a conversation about one of the foundational tools (some of them include a personal assessment, then we do a strategic business assessment), and one of the tools I went over was summary financial performance.
I get super passionate about financial performance. The industry has set you up to be rewarded with the wrong things. I have this awesome opportunity to see the financials of our members and folks on strategy sessions. A lot of folks have just set their businesses up the wrong way and they believe that sales are the only thing that matters.
I’ve seen businesses with $5M+ in revenue where the work falls all on the owner’s shoulders. There’s no shame in that, it’s just something to consider if you want to look at your financial model and look at some numbers around it - do you want to structure it the right way?
“Profit is not an event, it’s a habit”. - Mike Mcalowitz
I’m not interested in selling more homes at less profit, and I’m sure you aren’t either. Here’s a challenge: how can you scale your business without you having to do all the work, and how profitable can your business become? You can sell fewer homes but make them more profitable by adding value to the transaction in what you can bring to the table. The more effort and focus you can put into the business and the delivery, the more ‘worth it’ you will be.
“Putting your nose to the grindstone is a really easy way to cover up an unhealthy business. We think that if we can just work harder, longer, better - if we can just hold out, something good will happen one day.” - Mike Mcalowitz
A lot of team leaders think that if you push the top line, the bottom line will work itself out. But, we have to be diligent in our efforts to balance our sales and profit in a sensible way that will bring us time and money freedom.
