Expense Management Instructor Powerpoint

5/21/2018 Expense Management Instructor Powerpoint

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REVISED EDITION

Remargin Your Business

An Agents Guide toExpense Management

Breakthrough to Mastery


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An Agents Guide to Expense Management

Main Ideas

1. Perspective on Expense Management

2. Measure Your Market

3.Size Your Business

4. Cut the Fat

5. Make the Most of What You Have

6. The Bottom Line7. My Action Plan


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Perspective on Expense Management

Protect Your Margin

When the market shifts, your margin becomes

your biggest issue.

Protecting your margin = saving your business.

Its time to cut back on expenses.

Unless it is nailed downit goes.Gary Keller

Pages 7-9


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(continued)Who Will Be Affected?

Question

Can I really thrive in a down market?

Answer

No . . . and YES

In the short term, everyonein an affected marketwill feel the downturn equally. But by cutting

expenses fast, anyonecan thrive in the long term.

Page 10


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(continued)Get Your Money in Shape

Phenomenal opportunities exist, but you need

to be fighting fit if you want to take advantageof them.

Fol low these s teps . . .

1. Measure your market2. Size your business

3. Cut the fat

4. Make the most of what you have

Page 11


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Measure Your Market

Follow the Pendulum Swing

Monitor these six market

indicators carefullyifthey are shifting, start

making timely cuts in

your expenses.

1. More inventory

2. Increased days on

market3. Fewer pendings

4. A smaller board

5. Lower production

and/or volume

6. Fewer leads

Page 12


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7An Agents Guide to Expense Management

Measure Your Market(continued)

Watch Your Pipeline

Track your income for the next sixty days.

Calculate how many closings you have and your

projected income from those closings.

A lot of people dont keep their eye on the ball until

they go to the bank and real ize their check ing

accoun t is emp ty, so they better get to work. But Icon stant ly watch what is 30 or 60 days ahead o f me

for closed income.Martin Bouma

Ann Arbor, Michigan

Page 13


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Watch Your Pipeline

Pages 13-14

1. How many closings are in the pipeline for the next two

months?

2. What is your projected income from your closed

transactions?

3. What will be your average monthly income based on

your sixty-day projection?


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Size Your BusinessIt is time to take a cold, hard look at your financial

situation.

Once you have a clear picture of your financialsituation, it will be easier to see what

adjustments should be made.

Look at two broad categoriesyour personal

expenses and your business.

Pages 15-18


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Size Your BusinessYour Personal Expenses

Your lifestyle may need some adjustmentsits not the

time for extensive vacations, redecorating your home, or

buying a new car. Categorize all your personal expenses so you know

exactly where your money is going.

Adjust your lifestyle costs to just below yourpro jected inc ome. That way you can be pleasantly

surprised if you have extra. Dave JenksKeller Williams Realty International

Page 16


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Examine Your Personal Expenses

Page 16

1. How much are you spending, and which categories

are costing you the most?


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Measure Your Market(continued)Size Your Business

Your Business

Follow a budget for your business.

What is the best budget to follow? The one you will

follow.

Pinpoint how much you are spending.

Complete the P&L statement in the Chart of Accounts

from The Millionaire Real Estate Agent.

Download the Excel spreadsheet from

kwu.kw.com/expensemanagement.

Pages 17-18


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Size Your Business

Page 19

1. Tally up both your monthly personal and business

expenses.

2. Subtract your personal and business expenses fromyour monthly income.

Find Your Margin


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Size Your Business

If income is lower than expenses, or if the margin

is tight, you must immediately take two steps:

1. Make cuts in your expenses.

2. Step up your lead generation.

Lets see how to get your marginback under contro l . . .

Page 19


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Cut the Fat

Take Stock and Look for ResultsKeep one question uppermost in your mind:

How does this expense help produce a buyer or a

seller lead?

If the answer is I dont know, or worse, It

doesnt, it is an expense that must be cut.

For every dollar we invest, we expect a

multiple return.Pam Kiker

Greenwood Village, Colorado

Page 20


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Take Stock and Look for Results

Page 20

Try zero-based budgeting:

Cut every expense back to zero,Reallocate funds to your justifiable expenses.

Cut the Fat(continued)


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Start Cutting Snail mail

Office space

Vendor contracts Print advertising

Office supplies

Pages 21-22


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Find Your Margin

Page 23

1. Think of two areas where you can make cuts today.

2. Think of three more areas where you can commit to

making cuts starting next week.



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The Big Two: Payroll and Lead GenerationThe quickest way to cut expenses is to cut back

on payroll. However, your staff is an investment.

Before dehiring, try to slim down the payroll.

Cut hours.

Combine positions.

Offer a bonus rather than salary increase. Offer a package.

Listen to what your staff wants.

Page 24


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The Big Two: Payroll and Lead GenerationIt may not be possible to keep everyone on your

team. Top grade your employees; let go of those

who do not perform to standard. Look first at: Part-time staff

New staff members

Borderline performers

Page 25


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The Big Two: Payroll and Lead GenerationIn a shifting market, your lead generation should be

focused on prospecting and enhanced by marketing.

Prospecting

Metwork!

Lead generate.

Prospect FSBOs and expireds.

Hold more open houses.

Get involved in the community.

Megaspersonally reengage.

Marketing

Market for a direct response.

Drive customers to speak with

you, rather than just build your

brand.

Follow up your marketing with

personal contact.

Pages 26-28


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What Not to CutNot everything must go! Think long termsome

people and services are worth keeping.

Dont cut customer service.Expenses that impact your reach with customers

are more important than ever.

Dont cut training and coaching.This is an investment that will actually help you

make moneyand can more than pay for itself.

Pages 29-30


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Make the Most of What You Have

Use Human Energy

Put your creativity and your energy into working

both harder and smarter.

Do the face time transactions yourself.

Get more assistance, not assistants.

Work with preferred partners.

Pages 31-33

A A G id E M


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(continued)

Maximize Your Tools

Leverage your yard signs.

Use your Market Center services.

Pages 34-35

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A A t G id t E M t


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(continued)

Harness KW Technology

Take advantage of eAgentC.

Upload your listings on the KWLS.

Pages 35-36

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A A t G id t E M t


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The Bottom Line

Downtrending markets are a huge opportunityto find better ways to run your business.

The degree to which you need to respond will

depend on the conditions in your local market. Your success will depend on how well you know

and understand that market.

Dave JenksKeller Williams Realty International

Question every assumption you haveand every do l lar you spend as a

result.

Page 38

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Productivity Boosters

Track Closing Details

Build Trust Relationships

Use Premade Marketing Content

Automate Your Mailing

Page 39

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A A t G id t E M t


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My Action Plan

Dont put away this guide without developinga plan to put what you have learned intoaction!

Refer to the Action Plan on pages 40-41 ofthe guide to assess your strengths andareas for improvement.

Write down steps you will take to improveyour skillscomplete it, share it, andcommit to it!

Pages 40-41

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A A t G id t E M t


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Take the other courses in the

Breakthrough to Mastery Guide series! Gaining Mind over Market

Upshifting Your Lead Generation

Seller Pricing Strategies

Seller Staging Strategies Lead Capture and Conversion

Internet Lead Capture and Conversion

Creating Urgency to Buy

Bulletproofing Transactions

Effective People Leverage

Short Sales, Foreclosures, and REOs

Financing Solutions

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30An Agent s Guide to Expense Management

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Expense Management Instructor Powerpoint