As a real estate investor it is easy to get influenced by the people around you. With every networking meeting and investment club you can hear a different way to run your business. Sometimes the advice is sound and can change the way you do things. In most cases what works for someone else does not always work for you. It is important to strike a balance between soaking in as much knowledge as possible and knowing what to ignore. If bad advice takes your business on a path that you do not want there is nobody to blame but yourself. Here are five important pieces of advice that will help you find and close deals successfully.
- Balance Passion Vs. Profit. One of the most common pieces of advice for any business is to follow your passion. Even though there is plenty of merit to this you need to be cautious. Having a passion for something is great but may not always be what is best for your business. In following a passion you still need to keep an eye on the bottom line. In a perfect world you would find an area of the business that affords you the ability to do both. This may not always be the case. If your passion leads your business to dead end areas you won’t be around very long. Your business needs income and profits to survive. Only when things are going in the right direction should you look to feed your passion. There is plenty of time down the road to work on specific niches that you enjoy. Until your business reaches a certain level you need to balance passion and profits.
- Do One Thing Great. Instead of dabbling with new ideas every few weeks settle on one thing and do it well. There will always be people telling you that if things aren’t working you need to change them up. Only when you have exhausted all of your options should you look to change. This is the case whether you are talking about a marketing plan or an area to invest in. If you give up before you give it a chance you will never fully know how things will turn out. Regardless of where you are in your business it is best to focus on one area or one niche and excel at it. Instead of being a jack of all investing trades you can be the master of one. By doing this you can develop a brand and people in your area will be able to instantly associate the niche with your name. You will gain contacts easier and you will increase your networking opportunities. Doing one thing great is always better than doing several things mediocre.
- Work Smarter Not Harder. In almost every business the value of hard work is always preached. Of course hard work is important but is not the end all and be all. Hard work without a vision can end up being a waste of time. It is far better to work smarter instead of working harder. By working smarter you will get the most out of your day. You will not waste hour after hour working on unproductive tasks. You can focus on the areas of your business where you are most productive. Working smart could mean hiring people to handle your most time consuming tasks. It could mean looking at a different approach before starting a big project. It could mean listening to people who have real world experience in whatever you are trying to do. You can work 18 grueling hours a day but it is far better to work six productive ones.
- Trust The Numbers. There is an old expression in the real estate business that numbers don’t lie. There will be many times when you come across a property or a situation that looks like a good opportunity. Upon closer inspection the numbers tell a different story. Instead of listening to your gut and letting your emotions take over you need to always trust the numbers. The numbers should be the primary item that guides every business decision you make. The minute you start falling in love with numbers and cosmetic items instead of looking at data you will quickly get in trouble. There is a time and a place to use your business instincts but even then the numbers should be your focus.
- Learn To Say No. As tempting as it may be you can’t take on every new opportunity that comes your way. You need to know when to pick and choose your battles. One of the most important qualities for anyone in business is the ability to say no. There are plenty of times when this is easier said than done. Instead of focusing on short term speculative situations you need to look at the big picture. Every business decision you make impacts another area. A seemingly good opportunity could take other opportunities that come your way. Walking away and saying no is a sign of strength rather than a sign of weakness. There times in every business when you need to learn to walk away.
Not every piece of advice you get in business will be good advice. It is up to you to know what to listen to and which to discard.
