We are officially under 40 days until we turn on page on another year. While that may seem hard to believe it will be hear sooner than you realize. If you are like most people you look at the New Year as a time to make tweaks or changes to your business and personal lives. Instead of waiting for the end of the year you should take some time now to assess where your business is and what may need to be changed. By doing this you can hit the New Year running and get your year off to a great start. Here are six areas of your business you should review now prior to the end of the year.
- Business Plan. Did you do everything you wanted in your business over the last year? If yes, what caused this to happen? If no, what prevented you from achieving it? In addition to reviewing your successes and failures you should look at your business plan as a hole. Does your plan still fit with what is going on in the market? Are your goals still in line with where you want your business to go? There is typically plenty of down time between now and the end of the year. Take some time and look at your business plan and more importantly how you can put any changes into action.
- Marketing. In the world of real estate you are only as good as your marketing. You can do everything else right with your business but if your marketing is poor you won’t have the results you desire. There are more marketing options than ever before. It can be very tempting to dabble in all of the various marketing options that are on the table. It is always best to pick out just a few and make those your focus. With marketing you want to look at the return rather than the expense. Analyze what marketing gave you the biggest bang for your buck and what failed to hit the mark. Many times just a few subtle changes in marketing can have a huge difference.
- Systems. Most human beings are creatures of habit. We often do the same things at pretty much the same time every day. With any business it is commonplace to continue doing things the way they have always been done. This isn’t always the best approach to take. You should constantly review if there is a better way of doing things. There are so many facets of the real estate business that can be improved simply by accepting change. There are systems for everything from lead generation to deal evaluation that change be altered. Look at every micro aspect of your business and see if there is a better way of doing things. As long as you accept that change is a part of business it is easier to make them.
- Lease & Insurance. There are many hidden aspects of a good business. One of the things that make a good business is protecting yourself at all times. Items like leases and insurance are incredibly boring but are essential in the event of an emergency. When is the last time you look at either one of these items? If you are like most people you probably only glance at them when a lease is ending or when your policy is renewed. Looking at them after an incident is often too late. Reach out to your insurance agent to see if you have all of the coverage you need. Spending a few extra dollars a month is worth it to give you peace of mind. With your lease you need to be protected in the event of an eviction or unexpected issue with the property. Call your attorney and ask if they can give your lease a look to ensure you have everything you need.
- Expenses. Do you have a firm grasp on every expense your business makes? It is not enough to have an idea or be able to take an educated guess. You need to sit down and take the time to go over each and every expense. This is another of those painstaking items that is necessary for business success. By pouring through your expenses not only can you save money but you may be able to find a better way of doing things. A few hundred dollars a month may not seem like a ton of money but added up over the year can equal thousands.
- Financing Options. The final business item for review is your financing options. Even if you have a primary financing option you should always keep your options open. You never know when you will need a private money or hard money lender. If you use lender financing you should reach out to you lender or mortgage broker to see if there are any new programs available. There are always new mortgage programs hitting the market. There could be one with a reduced down payment or documentation option that fits with your lending profile. At any time you should have at least four different lending options you can utilize if a new deal presents itself.
Take advantage of any down time between now and the end of the year to set yourself up for next year. The better in touch you are with these six areas the better position you will be to have a great 2017.
