3 Strategies For Real Estate Entrepreneurs to Prevent Your Income From Being Consistently-Inconsistent
Are you experiencing inconsistency in your real estate business to the point that your deal volume and income are fluctuating more than the price of gas at your local Exxon?
Maybe you’ve hit dry patches in your real estate investing business where you don’t have as much revenue coming in due to to a variety of reasons, like closing delays or inconsistent marketing.
Consistency is an area where many real estate entrepreneurs struggle.
Once your real estate business hits a certain level, sometimes it’s challenging to remain consistent with prospecting, follow-up, marketing, and the relationship building that’s crucial to scaling your business.
So why is it that filling our pipelines with quality leads in order to propel business is the first activity that we neglect when we get overwhelmed?
When you take a step back and recognize that next month’s revenue is contingent on this week’s prospecting efforts, you really begin to understand the critical nature of consistent effort.
So, What’s the Solution to Consistency in Your Real Estate Business?
As a real estate entrepreneur, you know there’s a lot of moving pieces in your business. And the fact is, if you’re trying to be the chef, the server, and the host in your business – something is bound to fall through the cracks.
When we have too much on our plates, often what takes a back seat is our marketing efforts for future deals and clients – because it’s easy to get consumed with your current deal transactions.
One way that I’ve been able to create consistency in my business is to make a concerted effort to focus on revenue generating tasks and delegate everything else.
You’re probably thinking, “easier said than done,” right?
Below I’ve listed a few ways to make you more efficient and fine tune your delegation skills, which will ultimately: (1) increase your marketing consistency and deal volume, (2) help you solely focus on revenue generating tasks, and (3) take your business off of the income-roller coaster that none of us want to ride.
3 Keys For Better Delegation And Greater Efficiency In Your Business
#1 - Determine your entrepreneurial hourly rate
Let me tell you why this is important. If you don’t know what your time is worth, then you don’t have anything to measure against when you’re trying to determine if you should take on a task, or delegate it.
Also, knowing your entrepreneurial hourly rate keeps you accountable.
So for example, when you’re about to do an activity in your business, the little voice in your head should be saying “is this at least a $200/hr task (or whatever you calculate your hourly rate to be) that I’m about to do ?”
If the answer to that question is “yes,” then you know you’re doing a high revenue generating task that’s propelling your business forward.
If the answer is “no,” then you need to STOP before you even start, and delegate that task. A good example of this is filling out purchase agreements or calling to get utilities set up on a property.
Neither of those are high revenue generating tasks. Whereas, negotiating a deal with a potential seller, helping a new buyer find a home, and working out the details of a JV deal are highly profitable activities.
#2 - avoid being a one-PERSON show
Are you running your real estate business solo - with no one to assign tedious time-sucking tasks that need to get done - but, tasks that aren't the highest and best use of your time?
It’s very hard to sustain that long term, and even more difficult to scale your business all by yourself.
Remember the chef, server, and host reference I made earlier?
There’s a reason you never really hear about super successful one-person restaurants.
In any business - and especially real estate - there’s a lot of moving pieces to keep up with in order to have a successful operation.
In order to manage all of the tasks that don’t have a direct impact on your bottom line, I strongly suggest hiring a virtual assistant (VA).
Virtual assistants can take all of your routine, time-sucking tasks off your plate such as admin paperwork, bookkeeping, lead follow-up, and answering phone calls – just to name a few.
You can also give tasks to virtual assistants related to your marketing – like ordering mail pieces each month or managing your pay per click campaigns – so those marketing tasks are done consistently in the background to keep your pipeline full, while you focus on putting together deals.
In addition to the time a VA will save you, they’ll also save you money - since their rates are extremely affordable vs. a local employee. And, you won't have the additional overhead of office space since they're virtual.
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#3 - You can’t improve what you don’t measure
It’s very easy for us to get so caught up in our day-to-day real estate transactions that we forget to have systems in place to measure where we’ve been, where we are, and where we want to go.
If you’re not keeping track of and measuring the details in your business (revenue, response rates, key performance indicators, etc) - then you have no benchmarks to use in order to...
- Focus your marketing efforts
- Determine what activities are having a positive or negative effect on your revenue
- Figure out how to optimize your resources based on what's most effective and/or profitable
Whether you decide to use an Excel spreadsheet or a CRM (customer relationship manager) - you must find a way to track what’s going on in your business.
Being clear on your numbers will also help you put into focus what you need to concentrate on in your business so that you're always making the most efficient use of your valuable time.
So, What's Next?
If you’re in this business for the long run, the best time to start doing activities to create consistency is NOW.
Take the time to determine your entrepreneurial rate and hold yourself accountable.
Hire a good virtual assistant (or someone locally) that you can delegate the tasks that need to get done to propel your business forward (i.e. marketing) while you work on high revenue generating activities.
And. measure EVERYTHING you’re looking to improve. Whether it’s the response rate to your marketing, the number of leads that you generate weekly, or the number of deals you do in a month. You have to track it to grow it.