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Efficiency Leads to Real Estate Success

by Jim Crawford

In real estate, what often is a key element of success is not the company we belong to, the designations we hold, or the software and hardware we use that affords us success. It is how well we use them that count.

Major businesses constantly look at their books and production processes to make their companies more efficient, and productive. Nonproductive areas are cut or eliminated from the budget because it is not feasible. Growing areas of business are refined and streamlined to build new streams of profit, and costs are trimmed. Areas of profit and loss are analyzed, and changes are made to correct deficiencies.

I think that all of us could agree this is a wise strategy.

Industry studies to determine and identify these areas used to be called an “efficiency study.” These studies insured corporate survival, accountability, and profitability. So why do we not do this in real estate? We all too often focus on the deal at hand, the next closing, but never step back for a moment to see the big picture. Does it sound familiar? I think we’ve all been there.

At the core of every productive agent, team or brokerage you will find a production process in place. It is a logical thing to do. Organization brings structure, purpose and results for a business. That choice is more than a preference; it’s a deliberate attempt to streamline a business, raise income, lower costs, and improve efficiency. Many agents, real estate teams, and brokers that implement a purposeful business plan or model, find it is the stepping-stone to success. Implementation of that plan may require delegation in some areas, and more personal control in others. That ensures the business plan and goals achieve a maximum effort, and desired results…profitability.

So what does that mean in English? For us in real estate it is taking an inventory of our business, our goals, budgets, and expenses and saving time. It’s about having the systems in place to quickly plug in a template (flyers etc), schedule an appointment or closing, or to do a presentation without reinventing the wheel. Efficiency is a constant refinement or fine-tuning of a production process so that the process works better. It is streamlining for maximum results.

We must ingrain in our minds, it is not about customization, but rather it’s building and refining our objectives and goals. The industrial revolution showed us that the standardization of the product is where our economy took off and never looked back. When we customize our services (flyers or presentations) it takes time out of our busy schedules, but what if our time were better spent elsewhere! We must constantly hold ourselves accountable, and ask, “What is the return on services we offer? Or is there any return?” And a better question, if not… why are we offering the service at all? Our own experience shows us that our unique marketing talents sometimes walk a thin line between being a marketing genius and egomaniac. I think we would all like to make more money, as opposed to stroking our egos. So how do we define the process?

Begin by asking these two questions, “What does this action or service do for me?” and “What is my return on this investment in my business?” In a nutshell, it boils down to “Work smarter not harder!” That will translate into more closed deals with less hassle. So an evaluation may show us that a better approach is to offer services that appear custom to our clients, but may be part of our regular service.

By examining our business, our goals and implementing change where needed, our lives will become more manageable, profitable, and efficient. Efficiency in our business will allow us to achieve success at a more comfortable pace. If we take stock of our business in an ongoing fashion, it then becomes part of an overall strategy that allows us to maximize our profits, and make best use our time. It affords us the opportunity to improve the quality of our operations, lives, and increase bottom-line income. To get there, we must ask ourselves everyday, “What is the best use of my time?”

Similar to breaking a bad habit, we must first change our mindset. We must measure success differently. We must reevaluate what we do, how we do it, what we spend, what is the return, and how much time does this project take to complete? We must not forget, the time we spend is an important component that must also be accounted for.

Some points to consider:

• What is the best use of your time?
• What is the most productive use of time?
• Where am I spending my time? Resources?
• What projects take the most time in your real estate activities?
• What processes, services can streamlined modified or eliminated?
• What services do I offer can I eliminate or reduce, without affecting the bottom line?
• What service can be added that will increase income, or reduce time spent on a service?
• Can I charge extra for those custom services?
• What tasks or jobs that I do can be delegated at a reasonable cost? (Flyers, virtual tours, presentations)
• What services can I delegate to my homeowner? Lender? Closing attorney? Or Home Inspector?

It is quite normal for all of us to resist change, but an ongoing reevaluation of the way we conduct our business does not have to be a big formal exercise. It is more of a time out. We are taking a total inventory of the way we run our business. We then can decide what is good, bad, and identify areas for loss or inefficiency. Once it is complete, we now have choices. We can keep running things the way they are, or slowly implement some changes. We will quickly find that we benefit greatly from even the smallest change.

The immediate result of streamlining our business is that we become more efficient and effective. This will allow us to: reduce stress, better allocate found time, and make better use of our budgets and income. This small exercise in efficiency can be an eye opener that leads to a successful career in real estate, and affords all a better quality of life.

Published: February 7, 2003