In our recent blogs I shared how we work with our commercial real estate coaching clients in building their personal commercial real estate business. We instill the perspective that each is his/her own Chief Executive Officer of their own business. Yes, you are the CEO of Me, Inc. And as the CEO, just like the CEO of Amazon, Facebook or any other company you can think of, including your own brokers’, you have five divisions to support your pursuit of profits.
These five divisions include: Sales, Marketing, Finance, Operations, and Human Resources.
In today’s blog, I am going to focus on the money! As each division in a company has a leader, the leader of the Finance Division is the Chief Financial Officer (CFO), and just as you are the CEO of Me, Inc., you are the CFO as well.
As I noted in my initial blog of this series, you must implement each of these five divisions in your personal commercial real estate practice. Missing one of these essential elements could potentially stop your business and you from growing and ultimately producing profit. Having sales is obviously essential, but generating profit is the ultimate objective.
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Your finance division consists of much more than the counting of your commissions and fees. That’s the fun part – but unfortunately, that is where most of commercial real estate professionals stop in their financial responsibilities. Your finance division consists of five essential elements of your personal monetary health. Your finance division is essentially the bloodline of your personal business interests.
5 Components of Your Finance Division
- Your business pipeline – inclusive of all prospect and client efforts
- Your budget – inclusive of planned income and expenses – again, you are running a company!
- Investments – yes you need to invest in yourself (coaching, training, personal development) and your company (equipment, marketing, tradeshows, etc).
- Expenses – dollars spent with no return expected (unlike investments)
- Taxes – you must plan for and allocate a portion of your gross income to taxes
No one said being the CFO was easy. You consistently need to plan and stay on top of your finances and report to your CEO. Yep – you need to have an honest talk with yourself. However, implemented correctly, your finance division will keep your company moving forward.
In our subsequent blogs, we will explore the remaining divisions more in depth. For now, download this free Personal CRE Business Org Chart to outline the key elements of your business. We will give you all you need to complete this chart in the final blog post of this series.
For more information on building your personal commercial real estate practice and learning how our clients out-earn their industry peers by 7x please join us for a special, free webinar on October 27th at 1:00 pm eastern. You can register by clicking here.