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Stay in business for yourself as a real estate professional long enough, and you will eventually find a number of ways to save time and make more money. Of all the time-saving and profit-aiding tools I have discovered over the years, outsourcing is one of the most valuable. Most of us agents feel as though we have to do everything ourselves in order for things to get done. I used to be like this, but no more. And believe me, when you learn to delegate and outsource, your business has the potential to explode. Here are five good reasons to think about outsourcing.

1. Get More Value Out of Your Time – When you’re in business for yourself, one of the most important things to consider is how valuable your time is. Think about the tedious but necessary (and sometimes menial) tasks you find yourself doing all the time. Are they really worth your per-hour price tag? When you outsource, you’ll pay someone else to take care of those responsibilities, so that you can tend to more important money-making projects.

Marketing your business is the best use of your time; delegate or outsource everything else.

2. You Save Resources – Stop for a second and think about all that goes into tasks you probably could outsource. This might include writing blog posts, handling questions from clients, coordinating closings and home inspections, website maintenance or development, feature sheet preparations and more. When you outsource an activity, you are not only getting the task done without expending any of your time, but you also more than likely have the task done by someone who specializes in that task. More than likely, those who you outsource to will have a better grasp of the task than you do.

For example, say you outsource the editing of an audio recording you created for one a marketing campaign. The person you hire for this job will already have audio editing software. This software can be quite expensive to purchase on your own, should you choose to go that route. You get free use of the software by outsourcing this project. Depending on the project, this might save you money and learning time. Which brings me to the next benefit of outsourcing.

3. Go to the Experts – The tasks you are outsourcing might not be ones that you have no desire to learn , whether it’s writing sales copy for sales letters, creating a new website or something else. By handing the work over to an expert who enjoys and makes it their business to know these things, you’ll be able to take advantage of their knowledge in the area without having to learn it yourself. This in turn gives your clients more than you could possibly give them doing it yourself.

4. Expand – When you outsource, you will soon realize that you are in a great place when it comes to getting more involved with your business. You will be able to work “on” your business instead of working “in” your business as my friend Michael Gerber teaches. This will allow you to improve your marketing, recruit great team members and consistently follow up with all of your prospects and clients. Outsourcing also frees you up to try and test new things in your business.

5. Accountability – When you outsource, your contract with the person or company will force you to stay on your own game, even ahead of the game, by planning better and making sure your important tasks are completed as well. When someone you have contracted to pay is depending on work that comes from you, it motivates you to do this. You’ll even find that tasks that are boring or repetitive to you can be handed off to someone who enjoys them. You will hold yourself accountable to get done what you need to get done to hand these things off.

These are five things that can help your business become even more profitable.

Are you a slave to your real estate business? Break the chains!

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When I was in a mastermind meeting with real estate entrepreneurs not long ago, I asked the question:

What Lessons Have You Learned From The Market Bubble and Looming Recession?

I was surprised to see that most of the attendees hadn’t learned any lessons this year. I’ve learned many. In fact, I started a little notebook where I detail new lessons as they are delivered to me – which is daily. I’m hoping to keep this notebook handy for the next recession, whenever that may be.

I thought I’d share with you some business lessons I have learned.

1. Credit lines CAN disappear. This includes both business and personal lines of credit. My lender, for example, froze my home equity loan. I’m sure your lender might have, too. The BIG lesson here is that it is necessary to build large cash reserves. Even in good times, don’t be lured into thinking that your credit lines will be available when you need them. They won’t in the worst of times. Maybe borrow from your credit lines when they are available and put the money in a savings account, making the interest payments.

2. Obtaining new credit will be tough. Your credit score doesn’t matter much when nobody is lending money. See above.

3. Business opportunities change quickly. You must be proactive and spotting and adapting to these changes. What are larger businesses doing to adapt? Copy their strategies within your business.Where is the money in your marketplace. Pay attention. Follow the money. Be decisive. Change quickly.

4. Your clients will be very nervous about buying and selling. Try to understand their point of view, this shift in their mindset. Alter your client communications in accordance with this shift.

5. Always keep your overhead low. Overhead will take you down very quickly. Don’t take on large office space. Don’t take on too many employees. Don’t take on large fixed expenses within your business. Try and keep your business expenses variable. You can reduce these expenses quickly, if need be.

6. Do what it takes to improve customer service immediately. When the market was moving like gang-busters, agents let their customer service slip. This was a mistake, and one that needs to be corrected now. Go above and beyond for your customers. Do not give them reason to take their business elsewhere.

7. Seek ways to offer lower-priced goods or services. When money is tight, price becomes a bigger consideration to your clients. Be prepared to adjust your pricing so that they have no reason to go elsewhere.

8. Must have multiple income streams. When times are good, take time to create multiple income streams. Try and diversify these income streams so that the loss of one doesn’t impact others. Multiple income streams are like a life raft on a sinking boat. They are required and will save you from drowning.

9. Cash gives you the ability to lock in massive wealth. You’ve heard the saying – “Cash is King”, haven’t you? It’s true. If you have cash in a down market and the courage to invest it, you’ll build wealth very, very quickly. Homes can be purchased for pennies on the dollar. Stocks can be acquired at rock bottom prices. Buy when others are selling and sell when others are buying.

I hope this article will help you eliminate mistakes in your business. Lessons like the ones taught in this recession will continue to be delivered to you. Eventually, you have to learn them. It’s best to learn them the first time around!

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A couple of months ago, I read a great article in Forbes Magazine (which I haven’t been able to find online, so I can’t share a link with you). The article was an interview with Jim Collins, best-selling author of “Good to Great.”

Collins said that he learned a great deal from studying Microsoft’s Bill Gates. One of the most important lessons he learned is that it’s important to have “shock absorbers” in your business. “Shock absorber” can be defined as:

1. Resilient bearing which, in a watch, is intended to take up the shocks received by the balance staff, and thus protects its delicate pivots from damage.

2. A device or a part that absorbs and cushions the impact of a wheel going over an obstacle, which makes for a smoother ride. No different from a shock absorber used on a car or motorcycle.

That first definition hints at a sort of protection, and the second highlights the concept of a “smoother ride.” The two different definitions could be interpreted as the following in business.

Business Shock Absorber: What protects a business from loss of revenue or from unexpected expenses.

Examine Microsoft’s balance sheet, and will be able to see the shock absorber in that business. To save you the effort, I’ll point it out for you: It’s $25 billion in cash. The Fortune article relates that Gates keeps several years worth of expenses for his business saved in cash. This would allow Microsoft to weather almost any threat to the business, including competition, loss of revenue, recession and changes in market demand. Even more importantly, the stockpile of cash lets Microsoft stay focused on the corporation’s long-term business plan. Without this shock absorber, it would be forced to defer long-term business plans to generate short-term revenue.

Side note: For the first time ever, Microsoft just issued long-term debt, raising capital through bonds for business expenses that might potentially include stock buybacks and possible acquisitions. Even though it has enough cash for these things, Microsoft and Gates appear unwilling to let go of the cash “shock absorber” in place. This safety net stays going forward.

Financial planners generally recommend we create an emergency savings account, holding three to six months of living expenses. This “emergency” savings account would then only to be used to cover large, unexpected expenses or a loss of income. It is not to be used for frivolous purchases. This emergency savings account is a “shock absorber” for your personal finances.

You’d probably agree that such an account is important for your personal finances. But what about your business? We real estate agents don’t really have the same kind of regard for our business finances. We should have the same kind of shock absorber in place. We really need two emergency savings accounts — one for our personal finances and one for our business.

In hindsight of the past two years, this probably makes a lot of sense to you now. Hopefully, you had cash set aside for leaner times before the leaner times hit. Regardless, this is a lesson we all need to learn now. Gates is not one of the world’s richest men by accident; he’s in that position because of long-term thinking and contingency planning. Gates has backup plans. He plans for problems in advance.

What are the average monthly expenses for your business? Get your number, then set a goal to save six to nine month’s of your business’s average expenses. As the market rebounds, make a real commitment to set aside a portion of every commission check and put it toward your shock absorber. This shock absorber will protect the business and let you stay focused on long-term goals.

Oh and one more thing, follow Microsoft’s lead and do not use your shock absorber for anything, until absolutely necessary.

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WARNING: What I’m am going to suggest in this article is not easy, but it offers three very profitable opportunities for your business. In fact, you’ll have to launch one very challenging business to tap into the three profitable opportunities I will share.

I coach agents in markets all across North America, some in pretty small markets. Small markets mean small populations, which mean difficulties for agents trying to build large, sustainable businesses. Generating enough leads is hard in a small market, and leads drive sales.

One way to side-step this small-market challenge would to take your business to a national level. You could do this by marketing in national publications. For example, run your best lead-generation advertisement in USA Today, a national newspaper with a subscription base of more than 2 million . Think about the number of leads you would be able generate from just a single ad!

Maybe this doesn’t make much sense to you on the surface; the majority of national readers probably aren’t looking to move to your area. But what if you shifted your marketing toward real estate investors? You might be surprised to find a large group of people who might be willing to invest in attractive income properties in your area.

In order to capture these national sales, you’ll need to offer property management services. This is where my warning comes into play. Property management is a tough business to start. There are numerous challenges and hurdles to overcome.

However, property management services allow you to sell homes to investors outside of your market area. This ability to take your business national could be extremely profitable for you. Think about advertising in the Wall Street Journal or Investors Business Daily. What type of prospect would you attract to your business?

Most agents who consider property management services only “see” the monthly management income. This income is attractive and can be engineered to cover all of your overhead expenses. If you have 50 homes under management and you charge $100 a month, your business collects $5,000 a month without having to sell one home. Not bad.

The next profit opportunity for you with property management is the ability to sell the homes that you have under management. An agent I coach includes a clause in each of his management agreements that gives him the ability to sell the managed homes and earn full commissions on each sale. Obviously, the terms of the contract would have to be acceptable to the investor. Think about it: If you 50 homes under management with clauses that allowed you to sell those homes, you would have 50 listings in your pocket. This would be an extremely attractive asset.

Property management is a difficult business, and you would have to consider all the challenges before getting involved with it. Another option might be to find a great property management company and refer your clients to this company. This would still give you the ability to take your business national without having to provide the management services yourself. However, you would lose two of the sources of revenue available through property management: the monthly management income and the automatic listings you’ hold for the homes under your management. You would still have the ability to generate leads at a national level, though.

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