It’s good practice to continually review what you could be doing more of in your real estate agency, to keep driving it forward. Keeping your finances in good shape is not a small task, so we thought we’d consolidate our own finance tips below for you – how many will you take on board?
1. Set new goals for your real estate agency
Review the current status of your agency and what it’s offering right now. Think of new unique services that you could offer and ways you can optimise your existing services so they bring about return. Establish specific objectives for the year ahead, to ensure your agency is on track with your vision.
2. Administration is important
Improve your cash flow and lead your agency down the right track by taking advantage of technology and implementing credit management software. This will ease your workload by organising your paperwork and invoices to help you stay on top of sales ledger entries, credit notes and payments.
3. Maintain a good relationship with your customers
Don’t forget that your agency cannot grow without its customers, so take your time to keep open lines of communication between your agency and your customers to ensure their loyalty to your brand – so when they are selling or buying next time round, you’re the first call they make.
4. Research your market and competition
Remember that you’re not the only one in the real estate industry and that there are hundreds of other agencies out there fighting to win the same contracts. Keep track of your competitors and what they offer, and also keep an eye of any new property trends. Knowledge is power, so use that information wisely to stand out in the crowd.
5. Search for loyal suppliers
Evaluate your suppliers and focus on getting the best exchange of value versus money available on the market. Compare different supplier rates and make sure that you’re getting excellent quality at low cost to minimise your operating expenses. Take advantage of special deals and discounts that they may offer and negotiate longer credit terms. Keep close relationships with your suppliers to ensure loyalty during tough times.
6. Seek alternatives to financing and improve the health of your agency
Sometimes commission payment takes longer than expected and this low cash flow can limit your working capital. Don’t let the sale process affect the health of your real estate agency, take initiative and look for new ways to finance your working capital. Statistics say that 34% of small businesses are preferring non-bank finance due to the current global economy status.
If your agency is in need of a little more guidance on how to better manage cash flow, let us know – we’d love to work with you to make this financial year a less stressful one. As a member of Commission Flow, you’ll benefit from same day payment on commission, upon unconditional exchange. Get in touch with James Steer, our CEO to find out more.
7. Complete your tax return ahead of time
Don’t wait for the last minute to submit your tax return, pay your tax return as soon as possible. This will give you a clear idea of the cash flow budget for the following year, allowing you to focus on growing your agency and helping it stand out in the real estate industry.
8. Take a break and enjoy your achievements
Take some time off from work to enjoy and think about the triumphs that you have achieved along the way. Taking a break will help you reinvigorate and focus on the future. Don’t forget to learn from your failures as well, the lessons you learnt from your failures will help you come back with new confidence and ideas to struggle in today’s economy. All this effort is also thanks to your employees, so acknowledge them by rewarding them with staff events throughout the year.
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