Consult The Coach - Spring 2017

RE Magazine — Spring 2017


Consult The Coach

Dear Coach:

I don’t spend too much time looking at the finances of my Real Estate business. If I were to put some basic financial systems in place, what would that look like?

Signed,
Financially in the Dark






Dear Financially in the Dark:

Financial review and management is generally at the bottom of the list of most Real Estate Broker’s business practices. The typical thinking is: If there is money in my checking account, I am doing fine. This is not money management.

Here are some basic systems to help you manage your finances:

  • ACCESS: Be able to easily access your financial information. I have an App on my phone that allows me to quickly see my transactions and balances in all of my bank accounts.
  • TOOLS: Use an electronic financial management tool such as Quicken or QuickBooks. These tools allow you to categorize your income and expenses so that you can easily run reports. How much did you spend on marketing last month? How much have you spent on education this past year? This information is easy to retrieve when you use these tools.
  • GOALS: Set financial goals for the year and each month since Real Estate is a seasonal business. Start by looking at last year’s monthly revenues.
  • BUDGET: Look at your last year’s expenses, and create a spending budget so you know how much is needed to cover your personal and business expenses each month.
  • REVIEW: Schedule an hour every Friday (or some other day of the week) to review your finances. See how your actuals compare to your goals.
  • SAVE: Contribute, after each closing, to a savings account so that the next time the market turns, you will be prepared.

For brokers who don’t currently do these things, it may seem a bit overwhelming. Take it one step at a time. Start by getting access to your current financial information. The benefit of knowing your finances is peace of mind and the ability to make good financial decisions. Don’t stay in the dark.


 


 

About the Coach


Stuart Kaufman

Stuart Kaufman, MS, MBA, is a Real Estate Columnist and Business Coach who motivates, coaches, trains, and inspires real estate brokers to focus on lead generation, being accountable, and in balance. Stuart offers a Jump Start coaching session to help Brokers begin to plan, execute, and close more transactions. To contact the Coach, send an e-mail to coach@stuartkaufman.com or call 206-725-1584. © Copyright 2016, Metamorphosis Coaching. All Rights Reserved.

 
 

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