A Path to Higher Profit Margins for Your REI Company
Saving money is a goal all business owners have for their company; real estate is no different. The first step to higher profit margins begins with making your company more financially fit. Below are five ways to get your REI company healthier in 2016.
Go Digital
Online companies are very popular in today’s very digital world and the real estate industry is no exception to that trend. Your company can save hundreds of dollars in overhead costs and liabilities just by being an online company. You’ll save money on travel, and be able to work virtually anywhere as well; and since most everyone is online you may actually reach a wider audience as well.
Marketing Doesn’t Have to be Expensive
You can save a good chunk of money simply by changing the way you advertise and market your business. Consider using social media and blogging to get your name out there; you don’t have to spend a lot of money to do either one. Consider hiring freelancers that only work when you need them to do.
Properly branding your company is likely where you will spend the most money in setting up your company. You want to be sure it’s done correctly. Even if you find a cheaper way to brand, you should still present the best aspects of you and the company. Successful marketing of a home begins with the successful marketing of you and your business.
Review your Spending Habits
Avoid personal spending from the company money as well as borrowing money for the company if at all possible. This is a sticky web that you may not escape from, reflecting badly on not only you, but on your company as well.
Also take the time to really scrutinize where you are spending money for the company and decide what is necessary and what is unneeded. In this virtual world where everything is available at the click of a button, do you really need an excess of business cards and brochures? Look for the spending that brings you profit and get rid of the things that are draining the company.
Volume Isn’t Everything
Understand that volume is not always the answer for a business. Pay attention to each individual deal and its potential profit. If you focus only on the volume of deals you’ll likely lose out in areas you hadn’t considered, which means losing out on net profits as well. Keep your business goals in sight and know that your volume will grow over time if you are patient and handle each deal one at a time.
Start Small, Stay Small
Another way to increase your profit margins is to keep your company small. Look at all the positions in your company and decide what jobs are essential and which ones are not. Especially take a look at your management level positions, figuring out which managers you need and which departments could be handled by one manager , instead of multiple. A smaller staff will save you money in a number of different ways while conveying a more personal business in the process.
Being a financially fit company is always a mandatory goal to have. Being disciplined in your day-to-day approach can lead to higher profit margins with far less money being spent at the same time. These above tips will allow you to start the process of being more fit and move you toward those higher profit margins in 2016.