Spend or Save? Finding the Smart Investments for Your Real Estate Business
The bottom line in real estate is that you never know when the market is going to shift, when inventory is going to dip, or when some other extraneous factor will threaten your profitability. The key to building long-term success is not just growing your business but scaling it and knowing when to invest as well as when to cut corners.
BoomTown has powered some of the top real estate teams in the business for 12+ years, giving us a behind-the-scenes look at what it takes to be successful.
Save Money with a Firm Foundation (This Step is Totally Free!)
First, let’s define the correlation between money and time spent. Think of both money and time spent on a task commonly as currency in your business.
Keep in mind throughout this article the terms “time” and “money” are oftentimes used interchangeably. You can put a dollar amount on both.
One of the first steps in realizing where to save, is exactly where your time is being spent and what those tasks are worth.
In order to calculate the value of your own time, consider this article where we spoke with Stephen Cooley:
“Cooley learned that if he gave up some activities, it would allow him to put more emphasis on money-making tasks. He knows he can make $500-plus an hour with a client. Anything less than that, and he’ll pay other people to do it. He doesn’t need to be taking signs to houses or making copies of keys. Time is money.”
Build a Firm Foundation for Your Real Estate Team
Building Block #1: Establish your team’s mission and core values. If you have any doubt as to how this is done well and why it matters, listen to Path & Post Real Estate’s podcast episodes here.
Path & Post’s success is a direct result of their dedication to their own mission and core values. These values permeate every employee experience and each client experience. As a result, the Path & Post team was able to transition into existing as an independent franchise after 13 years with their franchise.
3 Easy Methods to Instill a Culture of Accountability
Building Block #2: Write your business plan (and create individual business plans for each member of your team). These individual business plans will be updated on a transactional basis. The larger business plan can be updated and adjusted as needed.
The main point of these business plans is to have built-in accountability systems. Especially if you cannot afford coaching, or need to save in this department. These plans keep you glued to your goals.
Resources for business plan templates:
Your Ultimate Real Estate Business Plan
Slow and Steady: How Successful Real Estate Agents Grow Their Business
Tom Ferry’s Blueprint to be a $700k Top Producer
Building Block #3: Instill analytics for every move you make. Too many real estate teams rely on analytics for transactions and nothing else. Do you know how many contributing factors go into one transaction? In the world of internet leads it can be A LOT.
Even if you are keeping track on the miracle that is Google Drive, Google Docs, and Google Spreadsheets, this is perfect. As long as you actually are taking the steps to actually do it.
Choose a time at one point throughout the day and update your analytics to have a realistic view of what is working, what is not, and where to make the next move.
Knowledge is power and measuring your progress will help you save more money that you could imagine.
Building Block #4: Remember the golden rule of spending and saving.
>>When you choose to spend more, you must save something in its place.<<<
This rule will keep your team agile and ready to make strategic moves, rather than becoming bloated and overrun with things you don’t need.
Keep in mind, this applies to the time and money principle. So for example if you decide to buy into a technology for your team, then you need to make sure less time is being spent on the same tasks this technology is automating for you.
Build upon these principles, and consider yourself a smart entrepreneur. This lays the groundwork, now for the nitty gritty areas where you can strategically save and spend.
(1) Training
Training. Training. Training. Training. Training. Training. Training. Training. Training.
Training. Training. Training. Training. Training. Training. Training. Training. Training.
Training. Training. Training. Training. Training. Training. Training. Training. Training.
Training. Training. Training. Training. Training. Training. Training. Training. Training.
No, it isn’t a typo. Training is legitimately this important.
Have you ever considered how much the real estate industry spends on new technology every year? It’s a lot. But what is really outrageous is the discrepancy between money spent on real estate technology and real estate team training for those technologies.
Training saves time, saves money, and saves you grief over troubleshooting in inopportune situations.
The numbers don’t lie, and our client data shows the most successful BoomTown teams have attended training, their leadership are in-the-know with the technology they choose to employ, and each team has a “technology advocate.”
A technology advocate is a team member who knows the technology system inside and out. They are the point person for new members and help the team function as a nimble organism, not crippled by tech questions.
Real estate team training resources:
The Secret Weapon for Real Estate Team Training
3 Easy Ways to Keep Agents Motivated with Training
A Brief Guide to Agent Training: What to Do
(2) Spend on Specialization
Whether you are running a one person real estate team, or have several team members, the key to getting sh*t done is specializing.
Take a notepad right now and write down what you hate doing. If you are like a lot of real estate agents this may be paid advertising, writing content, doing the finances, etc.
If you aren’t ready or don’t have the capital to add a team member, consider a digital assistant, hiring out your paid advertising, etc.
These strategic moves save you major time, and allow you to get back to what you’re best at. Don’t hesitate when it comes to these decisions. Spend on the experts and then you will save on the time it would have taken you to do half the work an expert could.
(3) Accountability
This “spend” is a time spend. And it harkens back to creating business plans in the foundational phases of your team building.
Spend the time making those business plans and you will only need to spend time, rather than money, on holding yourself, and your team, accountable.
The value of weekly meetings, monthly team member check-ins, stand-ups, or any type of accountability you prefer are gold compared to some accountability systems offered out there.
Start the day with a routine check-in, and hold your team accountable to the same. BoomTown suggest for our own clients kicking-off the day with this 90-second routine:
Continue your day with a schedule and time-block each task. If you hold yourself accountable to these time restraints, routines, and goals, then you and your real estate team will be able to assess what needs more attention or time on a regular basis, not only when you’re in desperate need.
(4) Technology Systems
Whew. Choosing the right technology for your team can be a doozy. Start by organizing your choices based upon needs, then continue to assess what plays well with others.
Most real estate platforms integrate with your favorite real estate tools, or are open to it.
Unless you have figured out learning by osmosis, then your tech will need to have a good training and support team to get you started. And the rest is really up to you!
Obviously we are a bit biased in this department, but a good solid technology platform can go a long way in saving you time and money. You know what can go further?
A technology platform that is more partner than provider. Look for technology companies who invest in your company if you decide to invest your money in theirs.
How to Find the Best Real Estate CRM for Your Business
And there you have it! This is a good starting place for you to measure what is worth spending and saving in a real estate team. For more information about a platform that could save your real estate serious time and money in the long run, contact BoomTown! You can reach us at (844) 885-9661.
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