How To Cut REI Business Expenses To Survive & Thrive
What’s the smart way to trim your real estate business expenses to survive this phase or the market, so that you can thrive and scale?
The Problem Facing Many REI Business Owners
The vast majority of real estate business owners, investors, and agents have not experienced this phase of the economy and market before.
In just a few weeks they have gone from denying that it is possible, to being on the verge of panic as they see it happening.
Many are experiencing stress and fear as property prices and deal flow changes, and they see many real estate brokerages making massive layoffs, and lenders losing their credit lines and redying for bankruptcy.
What’s ironic is that we are entering the best part of the real estate market for buying the best deals, and making the most money. Many are right on the brink of success, if they would just hold on, tweak their real estate strategies, and optimize their finances and operations.
There are going to be millions of property deals coming, and with Best Transaction Funding they can finance 100% of their acquisitions.
To Quit Or Not To Quit?
You only fail if you quit.
Many may be quite happy going back to day jobs and hourly pay working for someone else in a different industry, if they can find anyone hiring. Yet, for those who are truly entrepreneurs and business owners, giving up now will be a choice that will haunt them for the rest of their lives.
If you really don’t want to put in the effort to keep going, then consider your options before you just throw in the towel and shut it down.
You could potentially sell your entire business and at least wrap it up cleanly and walk away with some cash to get you through the next phase of the economy.
Alternatively, you could merge your business with someone else, or just sell off your assets. This may include your data, other physical assets, and portfolios of properties. There are plenty of other investors who want to buy them.
Where To Cut Costs
This is a good time to trim frivolous expenses that are eating up your cash flow and profit margins.
Subscriptions and software can add up fast, yet are often underutilized. Review your accounts for all those you are still paying for, and cancel all but the essential.
The biggest area to cut for those still working old school is their office and business premises. Not only is having an office unnecessary, it is putting you at an extreme disadvantage against the competition. Both financially and in terms of productivity.
You can also cut labor on unnecessary activities. Like meetings, or low yielding busy work that doesn’t increase profits and revenues.
Where NOT To Cut Costs
Whatever you do, do NOT stop marketing.
If you stop marketing, you stop bringing in deals and dollars. Your business will die. Just more slowly and painfully than if you just shut it down now.
Also be wary of laying off your best talent. You cannot replace great talent with lower quality talent, and expect for things to go well. It is counter productive. If you lose your best talent to the competition, they will use it against you. It is hard to find, harder to keep, and easy to lose.
If you can’t afford your current wages, then consider temporarily reducing and minimizing their hours, until you get your deal flow going again.
