Real Estate Professionals can have a hard time managing their finances. It’s feast or famine in many cases. You work long and hard on a listing, and the time between commission can be stressful. You will find it useful to sketch out the listings you have, and what the likely outcome is in terms of the commissions you’ll earn. Having this list in front of you will also help you prioritize and stay focused. In short you will want to create revenue projections for your real estate business.
I find it therapeutic actually!
Do you ever feel like everything is out of control?
I do. This process helps me every time.
When you create revenue projections for your real estate business it gives you a reality check on things.
Are you going in the right direction? Are you realistic in your projections? How close are you coming to your projections?
Was your last projection just a thought? As in, “I want to gross $1,000,000 this year?”
Newsflash kid! That’s not a projection.
The above is a revenue projection that is easy to create and manage.
Each month you want to look at these numbers and see how your actual compares to projected. If you do this monthly, you will see if and where you are way off. Expenses are easy to manage for real estate businesses. Most of your costs are fixed, or easy to calculate (eg percentage of your commission). It’s the revenues (or lack thereof) that kills us.
There is another benefit / reason why you should create revenue projections for your real estate business.
If you take my suggestions of not just doing this, but reviewing it every month?
How about having it up on your screen all day every day?
Wall St. Analysts have their stock tickers and charts on screen all day long.
This is your company’s stock ticker. Keep it open all day every day. Every time you get a new client, track that here.
Keeping your projections up all day will keep your focus on getting new clients, and keep you out of those endless political arguments on Facebook! I keep mine in Google Sheets. It is one of the default browser tabs that opens when I launch Chrome.