Presentation is loading. Please wait.

Presentation is loading. Please wait.

Ensure Your Business Makes Money for You! You work for your money, so make your money work for you by turning your real estate career into an agent business.

Similar presentations


Presentation on theme: "Ensure Your Business Makes Money for You! You work for your money, so make your money work for you by turning your real estate career into an agent business."— Presentation transcript:

1 Ensure Your Business Makes Money for You! You work for your money, so make your money work for you by turning your real estate career into an agent business. Learn to manage your bank accounts, finances, budgets, and more!

2 Build a business, not a team. 2 Ensure Your Business Makes Money for You!

3 Your numbers tell a story. 3 Ensure Your Business Makes Money for You!

4 Which numbers are you tracking? GCI Volume Units closed Net income 4 Ensure Your Business Makes Money for You!

5 5 Money

6 What Goes In … Commission – Listing income – Sales income – Referral income – Leasing income 6 Ensure Your Business Makes Money for You!

7 What Goes Out … Cost of sales Operating expenses 7 Ensure Your Business Makes Money for You!

8 Cost of Sales Cost of sales = cost of making the sale Commissions paid to the office Royalty fees Commissions/Splits paid to team members involved in sales Referral fees 8 Ensure Your Business Makes Money for You!

9 Operating Expenses Operating expenses = cost of running a business – Rent – Auto – Salaries – Insurance – Marketing – Education – Equipment 9 Ensure Your Business Makes Money for You!

10 What’s left over? Net income Profit 10 Ensure Your Business Makes Money for You!

11 11 The Flow of Money What Goes In $$ What Goes Out $$ What’s Left Over $$ Ensure Your Business Makes Money for You!

12 12 MREA Economic Model Percentage of GCI What Goes In (Income) GCI – Gross Commission Income 100% What Goes Out (Expense) COS – Cost of Sales 30% Operating Expenses 30% What’s Left Over (Profit) Net Income/Profit 40% Ensure Your Business Makes Money for You!

13 Budget Income COS/Operating expense Profit 13 Ensure Your Business Makes Money for You!

14 14 Troubled Flow of Money Personal Bank Account Business Savings $10,000 Self-employment Tax State and Federal Tax Mary’s Wallet $10,000 Commission Check Pay to the order of __Mary Realtor____ $10,000 $0 Ensure Your Business Makes Money for You!

15 15 Smart Flow of Money $10,000 Mary’s Wallet Business Account Personal Account $7,000 $1,750 $ 1,050 Self-employment Tax State and Federal Tax $4,200 25% 15% 60% 70% Commission Check Pay to the order of __Mary Realtor____ $10,000 Ensure Your Business Makes Money for You! $10,000 Mary’s Wallet

16 Your Financial Team Accountant/Bookkeeper CPA/Tax adviser Attorney Insurance agent Financial planner Coach 16 Ensure Your Business Makes Money for You!

17 Bank Accounts Business checking Business savings Business credit card Personal tax savings 17 Ensure Your Business Makes Money for You!

18 18 The Taxing Truth Estimated Tax Due Dates For PeriodDue Date January 1 – March 31April 15 April 1 – May 31June 15 June 1 – August 31September 15 September 1 – December 31January 15 (next year) Put these dates on your calendar now! Ensure Your Business Makes Money for You!

19 Why pay yourself a salary? Income – federal and state Self-employment tax Employment tax 19 Ensure Your Business Makes Money for You!

20 Pay Yourself Pay yourself a reasonable salary to avoid self-employment taxes on your distributions. 20 Ensure Your Business Makes Money for You!

21 Deductions, Exemptions, Credits Personal vs. business expenses Auto-deductions Home office Entertainment/Meals Business travel 21 Ensure Your Business Makes Money for You!

22 22 Profit and Loss Statement Account No.AccountAmountTotal 62000Lead Generation 62100Advertising$12, Print/Direct Mail$3, Internet Lead Generation$4, Entertainment/Other$15, Other Lead Generation$ Total Lead Generation $34,800 Example of One Expense Item and Detail Ensure Your Business Makes Money for You!

23 23 Profit and Loss Statement Profit and Loss Statement for Period Ending - (month/year) Income 41000Residential Income 41100Listing Income 41200Sales Income 41300Referral Income 41400Leasing Income 41000Total Residential Income $ Commercial Income 42100Listing Income 42200Sales Income 42300Referral Income 42400Leasing Income 42000Total Commercial Income $ Other Real Estate Income Total Income (GCI) $ - Ensure Your Business Makes Money for You!

24 24 Profit and Loss Statement Cost of Sales 51000Commissions Paid Out 51100Commissions to Office 51200Royalties Paid 51300Listing COS 51400Buyer COS 51500Other - Commissions Paid Out 51000Total Commissions Paid Out $ Other - COS Total Cost of Sales $ - Gross Profit $ - Ensure Your Business Makes Money for You!

25 25 Profit and Loss Statement Expenses 61000Salaries/Benefits 61100Salaries - Owner 61110Management 61120Administration 61130Other - Salaries 61100Total Salaries $ Benefits/Processing 61210Benefits 61220Payroll Processing 61230Payroll Taxes 61240Other - Benefits/Processing 61200Total Benefits/Processing $ Contract Labor 61000Total Salaries/Benefits $ Lead Generation 62100Advertising 62300Print/Direct Mail 62400Internet Lead Generation 62500Entertainment/Other 62700Other - Lead Generation 62000Total Lead Generation $ - Ensure Your Business Makes Money for You!

26 26 Profit and Loss Statement 63000Occupancy 63100Rent/Desk Fees 63200Utilities 63300Repair/Maintenance 63400Depreciation of Capital Improvements 63500Other - Occupancy 63000Total Occupancy $ Communication/Technology 64100Telephone Services 64200Answering Services 64300Internet Service Provider/Hosting/Charges/ IVR Service 64500Website Creation 64600Website Maintenance 64800Other - Communication/Technology 64000Total Communication/Technology $ Education/Dues 65100Education/Training 65200Coaching/Consulting 65300Books/Audio-Visual/Subscriptions 65400Dues 65500Other - Education/Dues 65000Total Education/Dues $ - Ensure Your Business Makes Money for You!

27 27 Profit and Loss Statement 66000Automobile 66100Mileage or Interest Portion of Payment or Percentage of Lease 66200Depreciation 66300Gas 66400Maintenance 66500Other - Automobile 66000Total Automobile $ Equipment/Furnishings 67100Rental 67200Depreciation of Capitalized Equipment/Furnishings 67300Repair/Maintenance 67400Property Tax on Equipment/Furnishings 67500Other - Equipment/Furnishings 67000Total Equipment/Furnishings $ Supplies/Office Expenses 68100Banking Charges 68200Office Supplies (consumables) 68300Office Operations 68400Other - Supplies/Office Expenses 68000Total Supplies/Office Expenses $ Insurance 69100Automobile 69200Error & Omissions 69300Property/Liability 69400Other - Insurance 69000Total Insurance $ -

28 28 Profit and Loss Statement 69500Professional Services 69510Accounting & Tax Preparation 69520Legal 69530Other - Professional Services 69500Total Professional Services $ Other Expenses 69610Charitable Contributions 69620Loan/Interest Payment 69630Office Transaction Fees Paid 69640State Sales/Franchise Taxes 69650Other - Other Expenses 69600Total Other Expenses $ - Total Expenses $ - Business Profit $ - Ensure Your Business Makes Money for You!

29 Budgeting Use the P&L to create your budget 29 Ensure Your Business Makes Money for You!

30 Track Your month-to-date actual vs. budget 30 Ensure Your Business Makes Money for You!

31 Red Light, Green Light Play Red Light, Green Light. Only spend when you have a reserve. 31 Ensure Your Business Makes Money for You!

32 Action Plan List at least ONE action you will take as a result of what you’ve learned. 1. _________________________________________ 2. _________________________________________ 3. ___________________________________________________________ Turn Every Lead into Profit

33 Thank You! Please complete an evaluation for this session. Use any mobile device!


Download ppt "Ensure Your Business Makes Money for You! You work for your money, so make your money work for you by turning your real estate career into an agent business."

Similar presentations


Ads by Google