forecasting to profitability presented by jonathan peterson
TRANSCRIPT
Forecasting to
Profitability
Presented By
Jonathan Peterson
• During the Space Race in the 1960’s the U.S was faced with a major problem
• Astronauts needed a pen to write in the vacuum of space
• NASA spent 1.5 Million to create an “Astronaut Pen”
• The Soviet cosmonauts found the simpler solution…
…A Pencil!!!
• Properly used – this can be a powerful tool, with unlimited possibilities!
….it’s no different with your Software!
What is Profit?
• Excess of your revenues over your expenses
• It must be your main consideration• Profit must be created, it just does not
happen on it’s own
=
Efficiency = Profitability
Accounting will never make you money!**
Making your Accounting efficient will save you money!
**Unless you are a CPA!
Why is a Budget Important?
• Plan of where the company is headed• Financial goals and objectives • Proactive vs. Reactive• Budget is a living breathing thing! • Beginnings of a business plan
Two Components
• Company Budget– Projecting where your the
company is heading
• Agent Budget– Projecting where your agents are
heading
• Like gazing in to a crystal ball– Experience counts
• Perform a SWOT analysis• What do you really have control over?• Do you know what your true costs are?• Are there trends in your expenses that should
alarm you?• Include your salary in the budget• Budget for a Profit!
Creating a company budget
Where to begin?Where to begin?
– What’s in the pipeline?– What’s to be paid out?– What’s your bottom line?
What is in the pipeline?
Detailed Due/Aging
Annual Income Statement
Create a Company Budget
Financial Statement
Budget to Actual
•Create Budget
•Run Budget to Actual
•Roll over Actual into Budget
Why should I have an Agent budget (plan)?
• Agents are the source of your income– …..and most of your expenses!
• Development plan– If they do well – you do well!
• Retention – “Interaction Opportunity”• Are they living up to their end?• Are there other revenue streams – things you do
for them?
Understanding your AgentsUnderstanding your Agents
– Who are your top performers?– Who are your liabilities?– Which agents are generating profit within the
brokerage?
Who are your top performers?
Who is under performing?
Who’s cutting commissions
Who are your bad debts?
Are you profitable per Agent?
Net Worth – Executive Summary
Create an Agent Budget
Track their progress
Ideas for making moneyIdeas for making money• Ancillary services…to your Agents!
– Withholdings taxes– Advance to your agents– Bookkeeping – Contact management– Transaction Coordination
Additional Ways to Find ProfitAdditional Ways to Find Profit
- Creating an On line office environment
- Co-op Marketing- Lead Tracking/Managements tools- Taking control of your expenses
Events• Upcoming Events with registration functionality & chargeback to agents
• Pay History/Transaction reports• Expense Statements• On Line Document Storage
Thereby creating a “Green” office
On-Line Access
Co-Branding• Advertising
• Assign and track leads
•Automatic fee tracking
Lead Tracking/Management
Where to go from here?
• Set objectives in each of the areas of Revenue/Expenses/Agents
• Implement recognition program for goal achievement
• Review and prioritize operating costs• Analyze agent activity and profitability
Q & A
Let us show you what over 3,000 Offices in 50 U.S. states and 10 Canadian provinces have discovered!“Thank you for our fantastic
management software and your tremendous support” – Dave Gravelle
“I couldn’t do business without it” - Jeff Moore
“I could not recommend a better software” – Michael Joe Cason
“I couldn’t run my business without it” – Tom Baron
“Would I do business without Lone Wolf? NOT A CHANCE” – Rich La Rue
“Lone Wolf Realty Management Software changed my life at work” – Pam McMullin
“It’s a great program!” – Bob Marion
“Honestly, I can not understand how anyone can run a Real Estate office with any other system” – Wes Coons
Contact UsLone Wolf Real Estate Technologies
231 Shearson Crescent, Suite 310
Cambridge, Ontario
Canada
N1T 1J5
www.lwolf.com
866-CRY-WOLF