Tactic two for tackling a shifting market is remargining your business.
Today we’re continuing our series on “Shift: How Top Real Estate Agents Tackle Tough Times” by Gary Keller. Make no mistake—we’re in a shifting real estate market. It’s happening gradually, but interest rates, inflation, and inventory are increasing, while the number of units sold is falling. Tactic two of “Shift” talks about remargining your business, or handling your expense management.
First, you need to protect your margins. No expense is untouchable, meaning you should look at every line item on your P&L. Second, you need to get smart with your money. You should define a benchmark for every dollar you spend. Then don’t spend any more until you get the result out of that dollar that you were hoping for.
Both of these tips are part of what we call playing red light, green light. In this case, we’re practicing red light because we’re trying to drive margin by lowering expenses in this shifting market. By the way, these strategies work for your personal finances too.
If you have any questions about this or want to discuss it more in depth, give us a call. Also, reach out if you’d like a copy of “Shift,” and we’ll get one to you. We look forward to speaking with you soon.