Any successful businessperson, over a span of years, has embraced the focus to build three areas of their business simultaneously. These three areas are the growth areas, working “in” the business, and working “on” the business.
Growth is the engine that drives sales growth. It’s the part of the business that brings in the revenue of the business. The more time invested in growth daily, weekly, monthly, the greater the resulting income. The vast majority of Agents spend too little time in growth. Growth is the DIPA activities that I have talked about throughout my writings. Growth is the critical part of the business, without growth, a business will fail.
I know a lot of Agents who are highly skilled at growth, but poorly skilled in administration and business planning, who earn large amounts of money. I know very few Champion Agents who are not highly skilled at growth. You can have huge deficiencies in administration and even customer service (I don’t recommend it) but still win the income game through growth. You can’t be deficient in growth and win. Growth is the engine that powers the train; you must first pay attention to growth. Your prospecting should comprise 65% of the time you invest in growth daily. If you don’t prospect, the other growth areas won’t happen.
“In” the business
Working “in” the business is the administration or production supporting activities. These need to be done, but not at the expense of growth. The “in” area focuses on you being an employee working in your business doing functions any employee would do. Our goal through the segment of working “in” our business is producing results for our delighted clients. We are trying to turn clients into evangelists so they generate referrals. Their transition to that level of customer satisfaction comes from working “in” the business. If you create good systems, processes, checklists, and have highly trained staff you can reduce the time you invest in this area.
“On” the business
This segment is the segments most Agents neglect until they want to retire and find out they have nothing to sell. In Michael Gerber’s book, The E-myth, he talks about the myth of an entrepreneur. He describes that most entrepreneurs have really bought a well paying job and don’t really own a business. Realtors® clearly fit into that category of entrepreneur. We also clearly fit into buying a well paying job.
When we work “on” our business, it really shapes our long-term success and growth from just running faster on the treadmill of your business and life. Your long-term financial wealth is contained in the working “on” your business segment. Your ability to earn a profit and increase the profit is key. Remember, sales is a margins game. The more time we invest to plan, read, strategize, evaluate, and implement new ideas, tactics, and strategies, the more we evaluate the market, our time, our numbers, and return an investment, the more ownership we gain. Becoming the owner of your real estate business only happens through diligent working “on” your business. Instead of being a highly compensated employee who pays the bills, why not become the one who orchestrates the growth of the company? Be the one who has something to sell when you want to transition or retire.
Working on your business is critical to helping you move to the next level of production, or to decrease time worked without reducing income, or finding where to cut expenses by 10%. Working on your business will help you create economies of scale in administration and new ways to produce growth and income in your business. You need one hour per day of working “on” the business. For every minute you plan, you will save ten minutes in implementation.
What do you think your business would look like in 90 days, or even six months, if you were to implement the below daily routine?
Growth: 3 hours
Administration: 1 to 2 hours
Business: 1 hour
By following the review patterns or pausing at the end of a day, week, month, quarter, six months, and year, you automatically increase the “on” time in your business. Another technique would be to schedule a block of additional planning and execution time at the end of each week. Most of our clients have ninety minutes of planning time each week where they work to improve their business. If you work to employ these techniques, you will transform the results of your business in a few short months.