Today Gary Gentry facilitated the Maximize Your Profitability session with Richard Stone, Rebekah Rivers and Cathy Naiser as panelists. The group shared tips on how they create higher profit by managing expenses. All the panelists agreed that there were some true hidden benefits that only a downturn or tougher market had brought home.
“Business Fixed Overhead” items are always the enemy. They are reoccurring and have to be paid monthly, quarterly, or annually – regardless of your sales income each month.
Some questions they agreed you must ask yourself:
Does your business operation absolutely require as much office space, number of phone lines, and outsourced services as you currently have?
What monthly savings would you realize if you refinanced any business or personal loans (home and rental property mortgages, car loans, etc.)?
If you have a team, what expenses are you incurring for their benefits, salaries, support cost, office or desk space, phone extensions, license or board of Realtors fees, etc?
What are the true costs to you versus the income they generate for you? Are they productive enough for the team, or is it time to “Top Grade”, or eliminate their position all together?
An overriding observation from the panel was that the basics of the real estate business are always the same. Personal repeat contacts with current clients, past clients and prospects via phone is still one of the best, and certainly the least expensive revenue generators and relationship builders. The audience really enjoyed the insights shared by these extremely successful agents!