Real estate investing, while very profitable, is not an easy business.
It can be unpredictable. A lot of investors don’t bother to set goals and just run their operation by the seat of their pants. Many investors who are already established within the business do set goals but fail to achieve them consistently.
Fortunately, there are several tactics you can use in your own business to ensure that you not only set better goals but increase your odds of success.
Focus on Less, Not More
Somewhere along the journey to building a successful business, you probably assumed that the more you could get done at once, the more successful you would be. That’s not the case. In fact, it’s just the opposite. You should focus on fewer things, not more.
The reason is that your efforts won’t be diluted. You’ll focus on what matters most, and be able to do a better job on the tasks on hand. Your schedule won’t be as cluttered and your workday won’t feel as stressful.
If you’re forced to deal with too much on your plate, you’re not giving each task the attention it deserves. Instead, choose your tasks wisely, give your undivided attention to each task, and soon you’ll reap the benefits.
One of the best ways to increase sales and improve your customer base is through the development of priorities and goals. As important as it is to focus on short-term goals and current projects, it’s just as important to focus on long-term goals.
Think about what you would like to accomplish one, three, and five years from now. You can set a separate goal each projection, known as 1-3-5 year goals. You also want to decide what priorities you have for the next 90 days. Those priorities are known as your “Quarterly Rocks.”
Creating Quarterly Rocks for your business can help set your quarterly priorities in a way that allows everyone to be on the same page.
Additionally, holding a quarterly meeting guarantees that your business team stays focused on the overall goals. The Quarterly Rocks process allows your team to come together every 90 days to share updates on the progress toward their 1-3-5 year goals.
Habit #1: Picking Priorities
Part of the Rockefeller Habits plan is picking your absolute top priorities for the year, with one to focus on each quarter. This goes back to the Quarterly Rocks above.
Habit #2: Creating a Communication Rhythm
Think of a way you can improve communication among your team. The book recommends a “daily huddle” which is essentially a quick 5-minute meeting that takes place every day to ensure your team is working together. It also allows for an opportunity for any issues to be addressed.
Habit #3: Drive on Data
Verne Harnish, the author of “The Rockefeller Habits” makes it very clear that data is what drives important business decisions.
That’s exactly why it’s important to recognize the key metrics in your business that will lead you to success – such as the # of leads you generate per month, how many offers you make, how many are accepted, average days to rehab a house, and so on.
Habit #4: Identify the “X” Factor
The “X” factor is essentially the one component of your business that needs the most improvement or is holding you back. The reality is that there’s always going to be an “X” factor, so once you fix one, it’s time to move on to the next.
Habit #5: Plan & Prepare
Once you figure out what your goals are as an investor, you want to determine how you plan on reaching them. Determine what you need to do to make things work the way you want them to so you’re aware of the work that needs to be done.
Creating an Effective Action Plan
The fifth stage of the Rockefeller Habits requires you to create a detailed action plan. You should have a solid plan for each goal that you set.
Step One in creating an action plan is to identify your tasks. Then, analyze the importance of each task, prioritize each goal, and set deadlines. From there, you can assign the task to team members.
Sometimes, an action plan will have multiple stages. For example, one task may need to be completed before another can be started. With a detailed action plan, make sure that the person assigned the task understands their job expectations. This is a necessary step in holding people accountable. Speaking of which…
Holding Everyone Accountable
Holding your team members accountable is also a key piece of the puzzle to putting together a successful business.
One way to do this is to schedule regular meetings. The frequency of these meetings will depend on your business structure.
For example, if everyone’s in the office daily, then you could hold a morning huddle meeting to ensure everyone is one the same page and making progress with their individual goals. If your workforce is more mobile, then you should at least try for a weekly team meeting, even if you need to conduct it via Skype or a conference call.
As part of holding everyone accountable, you also need to agree in advance as to what’s expected of everyone and outline what happens when people don’t do what they say.
With team members, there should be consequences for not following through with a task or completing a goal according to predetermined plans. This might involve a write-up, suspension, removal from a certain task, or a reduction of their workload.
Traction to Improve Your Business
Similar to “The Rockefeller Habits” there is a book titled “Traction” written by Gino Wickman. The best-selling book outlines six crucial areas that any business needs to make sure you’re headed toward success. This includes:
Having a Clear and Outlined Vision for Your Business
Not only is it important to have a vision of what you want your company to become, but you should share that vision with your team. Wickman suggests answering the following questions to determine your vision:
- What are your core values?
- What is your core focus?
- What is your 10-year target?
- What is your marketing strategy?
- What is your 3-year focus?
- What is your 1-year plan?
- What are your quarterly rocks?
- What are your problems?
Surrounding Yourself with the Right People
To reach your goals, you should be surrounded by the right people. Make sure your team is structured, understands their own responsibilities, and has a thorough understanding of expectations, including:
Take the information you’ve gathered from this article and improve your chance of success by creating yearly priorities, quarterly goals, action-oriented plans, and measure your key metrics while holding your team accountable.