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The Business of Your
Business
People, Planning, Money Management
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Who we are

• Womens Council of REALTORS - WCR is a
  nationwide community of real estate professionals
  
• With 15,000 members, WCR is the seventeenth
  largest womens business organization in the U.S
• Productive people with reliable expertise helping
  Realtors reach their next level of success
• WCR is an affiliate of the National Association
  of REALTORS and is headquartered in Chicago, IL

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How we do it

• Established network of 300 local and state
  chapters
• Volunteer managers trained to position their
  chapters as a business resource center in their
  REALTOR communities
• Regular networking and education programmed to
  keep our members at the top of their game
• WCR members collectively generate over 100
  million in commissions annually
• We learn more, earn more, grow more

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At a glance

• WCR members average income average - 117,900
• Average among all REALTORS - 52,000 annually
• Number of WCR members who annually refer
  business to another WCR Member - 7,000
• 94 of survey respondents agree that belonging
  to WCR gives them a sense of professional pride
• Ranking among more than 700 U.S. Womens
  Organizations 17
• All this and more makes the
  Womens Council of REALTORS the place
  Where It All Comes Together.

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• PERFORMANCE MANAGEMENT NETWORK (PMN) DESIGNATION
• A REALTOR designation that
• combines skills-based training
• and a thriving referral network

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PMN Designation Requirements

• Completion of at least 3 PMN courses
• Effective Negotiating for RE Professionals
• Networking and Referral Systems
• The Business of your Business
  People, Planning,
  Money Management
• NAR's At Home with Diversity
  approved for full credit
• Previously completed LTG courses will be
  recognized for full credit until 11/30/2005

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Performance Management Network Designation
Requirements

• Submit documented evidence of closed referral
  transactions (real estate sales) within past 24
  months totaling 30 points
• To/from another national WCR member 10 pts
• To/from a non-WCR REALTOR 5 pts
• From a client 2 pts
• Earn double points by recruiting this REALTOR
• Documentation examples
• company referral form, copy of check, client
  lists, signed statement from broker
• http//www.WCR.org

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• Modules
• Money
• People
• Management
• Planning

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Course Objectives

• Help you synthesize balance the 4 elements of
  your business by systemizing your career
  streamlining your efforts
• Money To evaluate your net income ensure
  increased profitability through planned growth
• People To position your personal production by
  leveraging your time through the creation of an
  ultimate team
• Management To manage your teams efforts
  resulting in increased profit more personal
  freedom
• Planning To systemize your business by ensuring
  more time for personal investment passive
  income for personal financial freedom

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Tips to create your success strategy

• Eliminate unnecessary expenses to increase your
  bottom line
• Evaluate your existing systems
• Update and automate your database
• Assess the last 5 years to determine where your
  business comes from
• Create a reserve/savings account
• Pay off debt

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Map out your success strategy

• Set aside some time
• Choose a place that you wont be interrupted
• Have all of your background material at hand
• Calendar past sales network tree database of
  client/prospect lists
• Visually depict your network tree
• Where your past sales came from
• Rate (A,B,C) them based on quality/quantity of
  referrals
• Incorporate a networking plan to generate more
  business (Networking Referral Systems course)
• Get help through outsourcing or hiring

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MONEY
People, Planning, Money Management
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Module Objectives - Money

• Differentiate between gross income, net income
  and disposable income
• Assess the discipline required to allocate
• Understand the need for taming business cycles by
  budgeting and forecasting
• Project, analyze and understand the importance of
  cash flow

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Gross versus Net

• YOU Incorporated
• Your Firm is not responsible to pay for
  everything
• Financial investment by you is required to grow
  your personal business
• Managing and evaluating recurring expenses are
  necessary for profit
• High Split is no guarantee you make more
• Unmanaged expenses could yield you far less net
• Its not what you make its what you get to
  keep!

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Gross Income Analysis
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Gross Income Analysis
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Classifying Expenses

• Recurring Business Expenses
• Annual or Bi-annual costs
• Monthly Fixed Expenses
• Savings/Reserves
• Taxes
• Retirement
• Savings Reserves
• Capital Reinvestment
• Periodic Business Expenses
• Variable Expenses

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Classifying Expenses Worksheet
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Classifying Expenses Worksheet
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Net Income

• Its not what you make
  Its what you get to keep!
• Gross
• Less Expenses
• Savings reserves deducted as expense
• Equals Net Income

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Net Business Income
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Net Business Income
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Cash Flow Management

• Its not what you make Its whats left when
  everything else has been deducted!
• Gross
• Less Business Expenses
• Equals Net Business Income (Personal Income)
• Less personal expenses
• Leaves Disposable Income

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Cash Flow Management
Net Business Income less Personal Expenses yields
Disposable Income
Gross Income less Business Expenses yields
Net Business Income
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Budgeting Forecasting

• A structure to anticipate future events
• Taming income cycles is key to stability
• Peaks Valleys burden financial obligations
• Expenses remain fairly constant
• Minimizing monthly income variances is key
• Plan for crisis
• Sickness, injury, personal family Issues
• Invest in Disability Insurance
• Secure excellent Medical Insurance
• Focus on what you can control

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Projecting Income Planning for Success
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Projecting Income Planning for Success
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Annual Cash Flow Projection Overview Worksheet
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Annual Cash Flow Projection Overview Worksheet
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Another Way to View Results
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PEOPLE
People, Planning, Money Management
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Module Objectives - People

• Recognizing that staff support is necessary to
  grow your personal business
• Identifying what type and level of support will
  fill the gaps and compliment your personality
• Creating a team framework that allows for all
  activities, tasks and efforts to be systemized
• Selecting the right compensation structure to
  ensure a mutually beneficial environment

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Building your Business

• Having a job is completely different from
  building a business
• Assess your past performance
• Setting Goals/Objectives for future
• Focusing your efforts on generating business
  through Networking/Referrals
• Secure efforts of others to help you manage the
  tasks/activities required for quality results
• Continue to evaluate outsource when possible

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Your Real Worth

• Your Worth is in coordinating the effort and
  the end results That is your Value Package
• Things needed to done by you
• Generating Business
• Implementing Systems
• Let go of some of the activities details by
• Outsourcing the actual activities tasks
• Supervising, managing coordinating the efforts
  of others to do the leg work

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Building requires Leverage

• Leveraging your resources is empowering by
• Exerting minimal personal effort and
• Outsourcing a majority of the labor
• To yield maximum results
• You dont have to do it all to be it all
• Team-building parlays your efforts
• Focuses your efforts on your true worth
• Provides you time to focus on your strengths by
  prospecting for referrals generating business

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Getting help

• You cant grow your business if you try to do
  everything yourself
• Neutralize the fear
• How can you afford to pay someone?
• Plan for growth utilizing
• Budget projections for income forecasting
• Hire before you need someone
• Gives you time to hire and train the right person
  without being crisis/overwhelmed

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Signs its time to take the leap
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• Details are overwhelming you
• Youre family life is suffering
• You havent had a vacation in a long time
• You feel like youre working 24/7/365
• Youre making money but dont have a handle on
  where its all going
• Youre not happy and feeling burnt out

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Avoiding Burn-Out

• Burn-Out results directly from failing to
  systemize your business so that you can control
  it, instead of it controlling you
• Systems Orientation - Staying on top without
  burning out
• Greg Herder
• Connections October 2004 volume 50, number 7

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Self Analysis

• Analyze what activities generate business
• Anything that puts you in front of people
• Analyze what activities cost you money
• Anything that stops you from interfacing with
  prospective buyers and sellers
• Analyze what wastes your talent
• List things you hate to do
• List things you dont do well
• List things that dont require a license

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Job Activity Worksheet
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Job Activity Worksheet
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Whats stopping you?

• Outsource the activities that
• You dont like or dont do well
• Divert your efforts from generating business
• Securing assistance does not have to be
• Permanent or costly
• Support staff is not an expense
• it is a profit center!

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Outsourcing Compensation Models

• Individual Task or Area
• Flat Fee or Hourly Temporary or Permanent
• Hourly
• Consultant basis Part-Time Full Time
• Salary
• Full Time With or without benefits
• Salary plus bonus
• Same as above Plus Transaction Incentive
• Commission
• on transactions worked on
• of total production generated by team

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Support hides everywhere

• Licensed Assistants
• Minimum producers in your firm
• Part-time agents
• New agents that are trainable
• Non-licensed Assistants
• Colleges, high school students
• Sphere contacts
• Word of mouth
• Virtual Assistants
• Work is no longer where you go its what you do!

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Virtual Assistants Resources

• Reva Network - www.Revanetwork.com
• Online forum where RE Pros Virtual Assts can
  connect
• International Virtual Assts Assoc - www.ivaa.org
• Non profit dedicated to professional development
  of members of virtual assistant profession
• Virtual Asst Network - www.VAnetworking.com
• Global network to facilitate ideas and resources
• Elance - www.elance.com
• Job posting site for virtual assistants
• Staffcentrix - www.staffcentrix.com
• Site that allows you to search for a VA not RE
  specific

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Building the Ultimate Team

• Agent
• Agent with Assistant
• Rainmaker - Team Leader
• Small 2-4 Assistants
• Med 5-7 Assistants
• Large 8 Assistants
• Rainmaker - Owner/Broker
• Agents in office are the Team

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Agent with an Assistant
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Small Rainmaker with 2 Assistants
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Medium Rainmaker with 5 Assistants
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Rainmaker with 8 Assistants
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Rainmaker Broker/Owner
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One Size Doesnt Fit All

• Select the type of staff support YOU need
• Minimize all activity that distracts or prevents
  you from networking and obtaining goals
• Create your own job titles
• Make a wish list of task areas to delegate
• Mix/Match the tasks based on the skill sets of
  those that will be helping you
• General suggestions follow

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General Assistant Categories

• Administrative Asst /or Call Coordinator
• Marketing Technology Specialist
• Buyer Agent Specialist
• Listing Agent Specialist
• Pending Transaction Coordinator
• Prospecting Specialist
• Some could be Virtual Assistants

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Activities Assistants Can Do
Licensed
Not Licensed

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Licensed versus Not Licensed

• Showing property
• Monitoring open houses
• Interfacing with clients
• Assisting with signatures, contracts, addenda
• Monitoring inspections
• Attending closings
• Attending pre-closing inspections
• Floor/Opportunity time
• Communicating feedback to clients
• Creating ads

• Clerical duties
• Marketing duties
• Installing lockboxes, signs, flyer boxes, keys
• Booking/confirming appointments
• Attaining feedback from other agents
• Placing ads
• Act as a courier for paperwork
• Filing maintaining files, databases, generating
  labels

If you are in doubt about the specific duties
your assistants can perform without a real estate
license, check your state licensing law for lists
of activities that require a license. Don't Risk
It! A Broker's Guide to Risk Management,
published by the NATIONAL ASSOCIATION OF
REALTORS, also contains a state-by-state table
of activities that can be performed by personal
assistants.
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Different Positions have different skills
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Different Positions need different skills
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Sharing Assistants
What are the Benefits?
What are the Obstacles?