Breaking news and updates daily. Subscribe to our Newsletter!

Home of the REB Top 100 Agents
Breaking news and updates daily. Subscribe to our newsletter

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.

Cash is still king, so show me the money!

By Live Real Estate Agents
11 November 2019 | 1 minute read
AdobeStock 534369

Promoted by Live Real Estate Accounts.

Now might be the time (in this listing environment) where you might be discovering how strong the foundations of your Real Estate business are? When markets are strong and revenue plentiful, it can hide a multitude of sins. Got a problem, throw more money at it!

However, for many this may be the first time you've experienced such challenges in the real estate industry, especially if you've been in business less than 10 years, anyone remember the GFC….? Or more recently if you're on the West Coast, the downturn that came via the mining sector correction, lots of listings no buyers or new managements, but no one to live in them.

It's now your business requires strong leadership and financial management to push through the other side, first and foremost ask yourself these questions;

  1. What is my business break-even point? 
    1. How many sales per month do I need just to keep the lights on?
  2. Is my sales team being productive?
    1. Being busy and productive are very different, they're not productive if they're not LISTING and SELLING.
  3. How does my cashflow look for the next 6-12 months?

Two of these are financial, the one that is not, can have the biggest impact on the other two! Knowing your breakeven is the barometer of your business. If you're monitoring the productivity of your agents, then you'll know exactly when you've passed the "kept the lights on" moment. 

Your profit and loss report will give you great insights into where your money goes (and if you're making any) and the trends of your business, a forecast cashflow shows you where you are going! If you would like a breakeven analysis done on your business or a forecast cash flow, then contact us NOW!

Now is the time for action, keep listing through Christmas up until the office doors close, if you stop so will your sales team! Remember your December BAS will be due for payment in February and March BAS in April, two big cash flow impacts in a short time frame, be prepared.

Outsourcing is a great way to protect cash during lean times, employing staff that are not busy or efficient is a drain on your business, by outsourcing you pay for only what's required, by someone who specialises in that area. Think about this, if you had to go to court, you wouldn't go get a law degree or employ a fulltime solicitor, you go get a gun for hire to do that job that needs doing! Find out how we can help HERE or call us on 02 8287 0630.

 

Cash is still king, so show me the money!
AdobeStock 534369
lawyersweekly logo
Rankings
rankings
JUST RELEASED
May 09, 2022

REB Top 50 Women in Real Estate 2022

REB is thrilled to present the Top 50 Women in Real Estate 2022 ranking, which sets t ... LEARN MORE

rankings
JUST RELEASED
May 04, 2022

REB Top 100 Agents 2022

Now in its second decade, the REB Top 100 Agents 2022 rankings are the most revered s ... LEARN MORE

rankings
JUST RELEASED
May 02, 2022

REB Top 50 Agents NSW 2022

Even a pandemic has not put the brakes on the unstoppable property market in NSW, whi ... LEARN MORE

rankings
JUST RELEASED
April 27, 2022

REB Top 50 Agents VIC 2022

The COVID-19 crisis has not deterred the property market in Victoria, which has been ... LEARN MORE

rankings
JUST RELEASED
April 25, 2022

REB Top 50 Agents QLD 2022

As the property market continues to roar in Brisbane and Queensland, the REB Top 50 A ... LEARN MORE

Coming up

rankings rankings
Do you have an industry update?

top suburbs

12 month growth
Box Hill
127.02%
Mollymook
82.85%
Brightwaters
79.93%
Cleve
78.13%
Bawley Point
76.2%
Murrays Beach
75.57%
Terranora
70%
Crescent Head
69.38%
Park Ridge South
68.32%
Mollymook Beach
67.09%
SEE AREA REPORTS ON SMART PROPERTY INVESTMENT WEBSITE
Subscribe to Newsletter

Ensure you never miss an issue of the Real Estate Business Bulletin.
Enter your email to receive the latest real estate advice and tools to help you sell.