Daily Tip – Profit & Loss For Agents
I had posted previously about a great FREE book by Howard Mann called Your Business Brickyard.
There is a chapter in the book that really resonates with me and that is “all truth is in the cash account”.
Basically your real estate business is exactly that – a business and needs to be run on the same principles that apply to all other industries – you must make a profit to sustain.
I hear often from agents that they are doing well, however when I ask them if they are profitable they really don’t know or understand what I am talking about. They see the income coming as “wages” and are not truly grasping the notion of profit.
I was fortunate at an early point in my career as a Mortgage Advisor that I partnered with someone who thoroughly understood the profit & loss concepts, and the P & L has become our only monthly report that we both monitor constantly.
If you need help with this, please feel free to email me, or I would also recommend you go to thecore.tv and order a Blue Beast from Rick Ruby who is a professional real estate trainer and has put together a great system for tracking your P&L, your Pay Log, and a Personal Household Budget.
