FREE 5 Minute Annual Budget Tool

Get clear on your annual financials with our simple, and easy to use 5 min budgeting tool.

WATCH the full training video below and Download your FREE copy of the budget tool by filling out the form now!

Quick

Once you download the file and watch the training video, you'll have a simple and easy to use annual budgeting tool that only takes 5 minutes each year to complete!

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Simple

We're all about keeping it SIMPLE.....and the 5 min budget tool will help you do just that. By tracking the 5 Simple-Numbers in your real estate business, you'll have exactly what you need to understand your financials without the overwhelm!

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Simple-Number #3 - Gross Margin: What is it and Why Is it important to my real estate business
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Simple-Numbers

Simple-Number #3 - Gross Margin: What is it and Why Is it important to my real estate business

Visit us on-line: http://www.Simple-Numbers.com Free P&L Review for Real Estate Teams: http://www.Simple-Numbers.com Simple-Number #3: Gross Margin (aka Gross Profit) What is it? Total Team Revenue - Cost of Sale (Broker/Agent pay/etc) = Gross Margin In other words, it's the amount you have left after you pay your broker/agent their portion (COS) but before you pay your expenses. If Gross Profit is GCI - COS, then what could/should be considered COS? - Broker Split - Agent Split - ISA Split - Showing Agent Split - Referral fees Anything that gets paid out as part of a sale when the commission check comes in is COS. Why is gross profit/margin so important? Can't I just focus on net profit? Get gross profit wrong, say goodbye to net profit, especially if you are out of or plan on going out of production at some point. This is the biggest mistake I see new team leaders make... COS too high, very hard to exit production and still make money. There are only 2 ways you can mess up your economic model (profit goal). #1 - Gross Profit (too low) #2 - Expenses (too high) That's it! As long as your gross profit percentage is on track, and you keep expenses in line, you can't mess this up.. If you plan to build profitable team, that doesn't rely on your personal production to make money, then you MUST set up your economic model correctly. If you get this wrong, you can say goodbye to making money without having to sell yourself. FOR A FREE P&L Review, please go to http://www.Simple-Numbers.com and get on my calendar. No cost, no obligation, but I can help you determine if your GP % is correct and if not what you can do to correct it over time. DON"T have a P&L? Reach out to us, we can help! The future of your business depends on you treating it like a true CEO and knowing your numbers. Reach out to us today and we can talk.