Why & how to understand your business numbers.
Numbers don’t have to be a snooze fest or a freak out. Knowing your own business numbers, though it can feel daunting at first, can help you to appear more professional, focus your efforts and keep you motivated. Here’s how:
Let’s say you were considering getting some help and outsourcing a service, either personal- or business-related.
Let’s say it’s a service that has to do with money…your hard earned, commission-based income.
While considering this partner, you and the CFO (Chief Financial Officer) of that business have a chat.
Say, you ask a few questions about that company’s business.
- Where does the majority of your best business come from?
- How do you find new business?
- How do you continue to take care of your best business clients?
…and then, what if that CFO didn’t know the answers?
They had absolutely no idea where their business was, or how it was currently operating numbers-wise. No clue.
Would you be concerned? Would you still hire them?
You are the CFO and owner
Do you know that if 10 real estate brokers were gathered together right now and asked about the numbers for their own businesses, maybe 2 of them would know those answers?
As the owner and CFO of your company as a broker, knowing your numbers can help you be -and stay- motivated, perhaps save you money and most definitely direct your efforts.
Focus & motivation
Let’s dig in to your 2017 numbers. If you haven’t taken the time to analyze your year so far for 2017, do so now by asking yourself these simple questions:
1) How many buyer consultations did I do this year?
2) Of those consultations, how many of those buyers did I help to purchase a home?
3) What was the average price point of the homes purchased?
4) How many listing appointments did I have this year?
5) Of those appointments, how many homes did I have the privilege to list?
6) What is the average price of those listings?
7) Where do my closings come from?
8) How is my conversion rate?
9) Of the repeat business I’ve had from clients this year, are those clients on my “A” list and am you taking good care of them?
If yes, how, specifically?
If no, how might I take good care of them?
It may take a little time to see what the business is doing, numbers-wise, but it’s information that will clarify where you are in your business and can direct your actions in other parts of your business as well.
For example: in marketing
Those last two parts of question 9 can really have a big impact on what your marketing can look and feel like in the coming year.
Knowing the answers to these questions will help direct your efforts and maintain your focus you close in on achieving your goals.
It’s never too late to start planning your best year ever…and that can also include what’s left of the current year.
Speaking of Best Year Ever
Get all of your clock hours for the coming year scheduled and paid for at the lowest possible rate.
The Learning Lab’s 2018 lineup of clock hour courses has been announced and the early bird does get the best deal on clock hours.
Early bird pricing goes until Jan 1, 2018.
Review our unboring 2018 classes and claim your awesome rate right now.
Reminder: all unboring original clock hour courses are always free for Metropolist brokers.