3 Things You Need to Be the CEO of Your Business
Ready to ascend to the CEO throne of your real estate empire? We're about to spill the beans on the 3 game-changing essentials that will have you assuming the role of CEO in your real estate business in no time. Even if you only have 1 property in your real estate portfolio, these are the 3 things you need to be the CEO of your business. Ready to take the reins? Let's dive in!
#1 Review your Monthly Financial Reports
The easiest way to review your monthly financial reports is to set up Quickbooks for your business. Every month, you should review your profit & loss report as well as your balance sheet.
QuickBooks is a popular accounting software used by small and large businesses to manage financial data. It helps in creating and organizing financial reports efficiently by automating processes such as recording transactions, tracking expenses, generating invoices, and reconciling accounts. QuickBooks can generate various financial reports, such as profit and loss statements, balance sheets, cash flow statements, and customized reports tailored to your specific needs.
To create a financial report using QuickBooks, you typically follow these steps:
Data Entry: Ensure all financial transactions are accurately recorded in QuickBooks. This includes income, expenses, invoices, bills, payroll, etc.
Account Reconciliation: Reconcile bank and credit card accounts to ensure that the records in QuickBooks match the actual transactions.
Generating Reports: QuickBooks provides a range of reporting options. Choose the type of report you need, such as an income statement or balance sheet, and customize it based on the specific time period or other parameters you require.
Review and Analysis: Once the reports are generated, review them carefully. Analyze the data to understand the financial performance, trends, and areas that might need attention or improvement. You might look at factors like which properties are performing well, if you stuck to your rehab budget, or if you need to save more funds for repairs in the future.
Sharing Reports: Financial reports are often shared with stakeholders like investors, lenders, or internal management. QuickBooks allows you to export reports in various formats for easy sharing.
Remember, the accuracy and relevance of the financial report depend on the accuracy and completeness of the data entered into QuickBooks. Regular maintenance and updating of financial records are essential for generating reliable reports and becoming the CEO of your real estate business!
To get started with Quickbooks, click this link to receive an exclusive 30% off your first 6 months!
#2 Performance and Quality Reviews
Review the goals you set for yourself and your team. Then, take a look at the people you are working with using a performance and quality review. Performance and quality reviews are essential processes within businesses to evaluate and improve the effectiveness of individuals, teams, or products/services. Here's a breakdown of both:
Performance Reviews:
Employee Assessment: Performance reviews typically involve evaluating an employee's work performance over a specific period. You might assess if your cleaner is performing up to your short-term rental standards or if your contractor meets deliverables by their due date.
Goal Alignment: Assess how well an employee's work aligns with your organizational goals and objectives.
Feedback and Communication: Provide constructive feedback to highlight strengths, address weaknesses, and set new goals or targets.
Professional Development: Identify areas for improvement and discuss opportunities for training or skill enhancement for members of your team.
Recognition and Rewards: Acknowledge exceptional performance and discuss potential rewards or incentives to keep you and your team motivated!
Quality Reviews:
Product/Service Evaluation: Quality reviews focus on assessing the quality of products, services, or processes within the organization.
Standards and Criteria: Comparing the performance of products/services against predefined standards or benchmarks. You might investigate if you are overpaying for a service.
Feedback and Improvement: Identify areas of improvement, potential defects, or inefficiencies and devise strategies to enhance quality. Maybe there’s an opportunity to negotiate bulk pricing for your renovation materials.
Customer Satisfaction: Evaluate customer feedback and satisfaction to ensure that products/services meet or exceed expectations. Are your renters or tenants satisfied with their short, medium, or long-term stay?
Continuous Improvement: Implement measures to continuously enhance quality standards and processes.
Both performance and quality reviews contribute significantly to an organization's growth and efficiency by ensuring that employees perform optimally and that products/services meet high-quality standards. Constructive feedback and a focus on development and improvement are key aspects of both types of reviews.
#3 Goal Setting + Future Planning
You need monthly goals in order to understand how your business is performing. Monthly goals also help feed into your long-term goals and make sure your real estate investing business is on track.
For example:
What are the Key Performance Indicators (KPIs) in your business?
How are you tracking and setting goals?
Here's an overview of each concept and how they relate to each other:
Key Performance Indicators (KPIs):
KPIs are measurable values indicating how effectively an individual, team, department, or organization is achieving its objectives.
They are specific, quantifiable metrics that reflect the critical success factors of an organization or a particular activity.
KPIs can vary depending on the context and goals. For example, in sales, KPIs may include revenue, conversion rates, and customer acquisition costs.
KPIs help in monitoring progress, identifying areas for improvement, and making informed decisions.
Goal Setting:
Goals provide a clear direction and purpose for individuals or teams. They define what needs to be achieved within a specific timeframe.
Goals should be specific, measurable, achievable, relevant, and time-bound (SMART). This framework ensures that goals are clear and actionable.
Goal setting involves defining both short-term and long-term objectives that align with the overall mission and vision of an organization.
KPIs and goal setting are intertwined in the sense that KPIs serve as the measurable, quantitative elements that indicate progress toward achieving goals. Regularly reviewing KPIs against your established goals helps in making data-driven decisions, adjusting strategies, and maintaining focus on the most critical priorities of your business.
We can’t wait for you to learn how to master financial reports with QuickBooks, conduct performance and quality reviews for optimal team efficiency, and set strategic goals linked to Key Performance Indicators (KPIs) for a thriving real estate business. By following these 3 strategies, you’ll be sure to claim the CEO title of your business.
Want to accelerate your way to CEO? Sign up for our CEO Bootcamp, an 8-week transformative bootcamp where we guide you through working on your business by mastering systems, delegation, legal frameworks, and foolproof financial plans. There is no other program that gives you a detailed, step-by-step plan to ensure you build a rock solid portfolio and moves you into a place of flow, freedom, and profit. Enroll now!
Resources:
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