1. Remargin Your Business
Expense Management
Remargin Your Business

2. MAIN IDEAS
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3. Main Ideas Perspective on Expense Management Measure Your Market
Size Your Business
Cut the Fat
Make the Most of What You Have
The Bottom Line
My Action Plan
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4. PERSPECTIVE ON EXPENSE MANAGEMENT
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5. Perspective on Expense Management
Protect Your Margin
- When the market shifts, your margin becomes
your biggest issue.
- Protecting your margin = saving your business.
- It’s time to cut back on expenses.
“Unless it is nailed down—it goes.”
Gary Keller
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6. Perspective on Expense Management
Who Will Be Affected?
Can I really thrive in a down market?
No… and YES!
In the short term, everyone in an affected market will feel the downturn equally. But by cutting expenses fast, anyone can thrive in the long term.
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7. Perspective on Expense Management
Get Your Money in Shape
Phenomenal opportunities exist, but you need to be fighting fit if you want to take advantage of them.
Follow these steps . . .
1. Measure your market Size your business Cut the fat Make the most of what you have
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8. Getting the Most Out of This Experience
The Prisoner
Has to be there, doesn’t want to
be there, and doesn’t know
why they’re there.
The Vacationer
A day in training is
Better than a day on the job.
The Explorer
Excited and curious about the new knowledge, skills, and tools
they will discover in class.
Doesn’t engage
Spends as much time chatting as listening
Listens attentively, then participates fully in discussions and exercises
Spends class time catching up on their s
There to have fun—distracts the class with irrelevant comments
Asks meaningful questions and contributes compelling aha’s
Escapes by spending time in the hall on their phone
Returns late from break and lunch
Arrives to class on time and returns promptly from breaks
Holds on to limiting beliefs
Not purposeful in their learning goals
Adopts a posture of acceptance
Multi-tasks on their computer by working on side projects
OMG! Spends the day on their smartphone, texting and checking Facebook
Takes notes in their manual for future reference
Picks fights with trainer or other participants if they don’t agree
Isn’t paying attention
Respects the different learning styles and opinions of others
Hopefully, you picked “The Explorer!”
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9. MEASURE YOUR MARKET
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10. Measure Your Market Follow the Pendulum Swing
More inventory
Increased days on market
Fewer pendings
A smaller board
Lower production and/or volume
Fewer leads
Monitor these six market indicators carefully—if they are shifting, start making timely cuts in your expenses.
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11. Measure Your Market Watch Your Pipeline
Track your income for the next sixty days.
Calculate how many closings you have and your projected income from those closings.
“A lot of people don’t keep their eye on the ball until they go to the bank and realize their checking account is empty, so they better get to work. But I constantly watch what is 30 or 60 days ahead of me for closed income.”
Martin Bouma
Ann Arbor, Michigan
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12. Measure Your Market Watch Your Pipeline
How many closings are in the pipeline for the next two months?
What is your projected income from your closed transactions?
What will be your average monthly income based on your sixty-day projection?
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13. Measure Your Market Size Your Business
It is time to take a cold, hard look at your financial situation.
Once you have a clear picture of your financial situation, it will be easier to see what adjustments should be made.
Look at two broad categories—your personal expenses and your business.
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14. Measure Your Market Size Your Business Your Personal Expenses
Your lifestyle may need some adjustments—it’s not the time for extensive vacations, redecorating your home, or buying a new car.
Categorize all your personal expenses so you know exactly where your money is going.
Adjust your lifestyle costs to just below your projected income. That way you can be pleasantly surprised if you have extra.
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15. Measure Your Market Examine Your Personal Expenses
How much are you spending, and which categories are costing you the most?
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16. Measure Your Market Size Your Business Your Business
Follow a budget for your business.
What is the best budget to follow? The one you will follow.
Pinpoint how much you are spending.
Complete the P&L statement in the Chart of Accounts from The Millionaire Real Estate Agent.
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17. Measure Your Market Size Your Business Find Your Margin
Tally up both your monthly personal and business expenses.
Subtract your personal and business expenses from your monthly income.
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18. Measure Your Market Size Your Business
If income is lower than expenses, or if the margin is tight, you must immediately take two steps:
Make cuts in your expenses.
Step up your lead generation.
Let’s see how to get your margin back under control . . .
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19. CUT THE FAT
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20. Cut the Fat Take Stock and Look for Results
Keep one question uppermost in your mind:
How does this expense help produce a buyer or a seller lead?
If the answer is “I don’t know,” or worse, “It doesn’t,” it is an expense that must be cut.
“For every dollar we invest, we expect a multiple return.”
Pam Kiker Greenwood Village, Colorado
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21. Cut the Fat Take Stock and Look for Results Try zero-based budgeting:
Cut every expense back to zero,
Reallocate funds to your justifiable expenses.
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22. Cut the Fat Start Cutting Snail mail Office space Vendor contracts
Print advertising
Office supplies
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23. Cut the Fat Find Your Margin
Think of two areas where you can make cuts today.
Think of three more areas where you can commit to making cuts starting next week.
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24. Cut the Fat The Big Two: Payroll and Lead Generation
The quickest way to cut expenses is to cut back on payroll. However, your staff is an investment. Before dehiring, try to slim down the payroll.
Cut hours.
Combine positions.
Offer a bonus rather than salary increase.
Offer a package.
Listen to what your staff wants.
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25. Cut the Fat The Big Two: Payroll and Lead Generation
It may not be possible to keep everyone on your team. Top grade your employees; let go of those who do not perform to standard. Look first at:
Part-time staff
New staff members
Borderline performers
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26. Cut the Fat
The Big Two: Payroll and Lead Generation In a shifting market, your lead generation should be focused on prospecting and enhanced by marketing.
Prospecting
Metwork!
Lead generate.
Prospect FSBOs and expireds.
Hold more open houses.
Get involved in the community.
Megas—personally reengage.
Marketing
Market for a direct response.
Drive customers to speak with you, rather than just build your brand.
Follow up your marketing with personal contact.
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27. Cut the Fat
What Not to Cut Not everything must go! Think long term—some people and services are worth keeping.
Don’t cut customer service Expenses that impact your reach with customers are more important than ever.
Don’t cut training and coaching This is an investment that will actually help you make money—and can more than pay for itself.
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28. MAKE THE MOST OF WHAT YOU HAVE
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29. Make the Most of What You Have
Use Human Energy
Put your creativity and your energy into working both harder and smarter.
Do the face time transactions yourself.
Get more assistance, not assistants.
Work with preferred partners.
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30. Make the Most of What You Have
Maximize Your Tools
Leverage your yard signs.
Use your Market Center services.
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31. Make the Most of What You Have
Harness KW Technology
Take advantage of eEdge and upload your listings.
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32. Career Growth Initiative
Listing Management
Listings (Monthly)
Pipeline (Buyers/Sellers)
VALUE
GCI
Agent Trend
Agent LORE
Local Expert
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33. Career Growth Initiative
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34. THE BOTTOM LINE
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35. The Bottom Line
Downtrending markets are a huge opportunity to find better ways to run your business.
The degree to which you need to respond will depend on the conditions in your local market.
Your success will depend on how well you know and understand that market.
Question every assumption you have and every dollar you spend as a result.
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36. MY ACTION PLAN
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37. My Action Plan
Don’t put away this guide without developing a plan to put what you have learned into action!
Refer to the Action Plan on pages of the guide to assess your strengths and areas for improvement.
Write down steps you will take to improve your skills—complete it, share it, and commit to it!
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38. Take the other courses in the SHIFT Tactics series!
Gaining Mind over Market
Upshifting Your Lead Generation
Seller Pricing Strategies
Seller Staging Strategies
Lead Capture and Conversion
Internet Lead Capture and Conversion
Creating Urgency to Buy
Bulletproofing Transactions
Effective People Leverage 
Short Sales, Foreclosures, and REOs
Financing Solutions

39. From Aha’s to Achievement
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40. Select drop-down to scroll for title of this course
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