Why Focus On Your Budget?
As agents, we sometimes get super excited about the next best shiny object. We fall in love with the latest technology or marketing strategy and we sometimes lose sight of what it all means for our business. When it comes to our geographic farms, this is no different. It’s great to be innovative and implement new tools and systems, but we have to ensure we stick to a budget if we want to ensure success.
I don’t mean that in the “stick in the mud” sense saying that you can’t do things just because you made a budget for yourself 6 months ago. But what I am saying is that we have to always look at our business from a budgetary standpoint.
That also doesn’t just mean financial. If you’ve ever heard me speak or taken any of my training, you know that I talk about a few elements of budget that we need to consider. These are key factors that can really dictate whether you succeed or fail!
Financial Budget
The easiest to understand is your financial budget. But sometimes the hardest to stick to. You need to understand how much you are spending. How much is coming in vs. how much is going out. We often overlook a lot of the little numbers, and they really add up.
If you haven’t taken a real account of your finances, I strongly recommend doing that now!
Time
The most underestimated element is the time budget. Especially if you’ve never farmed before. Many agents don’t truly realise how much time it will take to get a farm up and running and STAY running. It’s easy to get all excited at the beginning and budget a lot of time to get it running, but many agents overlook how much it will take to keep their efforts up.
The great news is that through technology and outsourcing, we can leverage a lot of the time intensive tasks so we aren’t bogged down doing all the little work, when we need to stay focused on the big work. This time budget is critical to focus on if you are going to stay focused on growing a truly successful farm. So make sure you are always tracking your tasks, time and efficiency.
Resources
Another important factor to consider that is often overlooked is your resource budget. This is the resources you have that you will need to stay on track. Are you using lock boxes, signage, pop up tents or anything else you need from a resource standpoint. Sometimes it overlaps with your financial budget as you may need to purchase things, but once you own them, you need to ensure you have enough resources to accomplish what you are after.
Energy
And last but not least, your energy budget. This is the amount of mental and emotional energy your tasks and strategies are going to take. For some, getting out door knocking is a breeze, for others, it’s dreadful! For others, the idea of getting on camera sends shivers down their spine and for others, they truly shine!
You need to account for these activities as you have to be aware of how much mental and emotional energy your strategies will take. Understanding this makes budgeting your time, resources and finances so much easier!
Conclusion
So whatever you plan to do in your farm, you want to ensure you are thinking well in advance and budgeting yourself accordingly. Obviously as things change, your budget may need to adapt, but you have to ensure you stick to your budget as much as you can to ensure you’ve given it a fair shot. If you sell yourself short, you may miss out on a lot of opportunities and if you miscalculate, you could end up broke, miserable and super busy with nothing to show for it!
Happy Farming!
Ryan Smith – Founder/Creator
Launch Your Farm
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