Forecasting to

Profitability

Presented By

Jonathan Peterson

• During the Space Race in the 1960’s the U.S was faced with a major problem

• Astronauts needed a pen to write in the vacuum of space

• NASA spent 1.5 Million to create an “Astronaut Pen”

• The Soviet cosmonauts found the simpler solution…

…A Pencil!!!

• Properly used – this can be a powerful tool, with unlimited possibilities!

….it’s no different with your Software!

What is Profit?

• Excess of your revenues over your expenses

• It must be your main consideration• Profit must be created, it just does not

happen on it’s own

=

Efficiency = Profitability

Accounting will never make you money!**

Making your Accounting efficient will save you money!

**Unless you are a CPA!

Why is a Budget Important?

• Plan of where the company is headed• Financial goals and objectives • Proactive vs. Reactive• Budget is a living breathing thing! • Beginnings of a business plan

Two Components

• Company Budget– Projecting where your the

company is heading

• Agent Budget– Projecting where your agents are

heading

• Like gazing in to a crystal ball– Experience counts

• Perform a SWOT analysis• What do you really have control over?• Do you know what your true costs are?• Are there trends in your expenses that should

alarm you?• Include your salary in the budget• Budget for a Profit!

Creating a company budget

Where to begin?Where to begin?

– What’s in the pipeline?– What’s to be paid out?– What’s your bottom line?

What is in the pipeline?

Detailed Due/Aging

Annual Income Statement

Create a Company Budget

Financial Statement

Budget to Actual

•Create Budget

•Run Budget to Actual

•Roll over Actual into Budget

Why should I have an Agent budget (plan)?

• Agents are the source of your income– …..and most of your expenses!

• Development plan– If they do well – you do well!

• Retention – “Interaction Opportunity”• Are they living up to their end?• Are there other revenue streams – things you do

for them?

Understanding your AgentsUnderstanding your Agents

– Who are your top performers?– Who are your liabilities?– Which agents are generating profit within the

brokerage?

Who are your top performers?

Who is under performing?

Who’s cutting commissions

Who are your bad debts?

Are you profitable per Agent?

Net Worth – Executive Summary

Create an Agent Budget

Track their progress

Ideas for making moneyIdeas for making money• Ancillary services…to your Agents!

– Withholdings taxes– Advance to your agents– Bookkeeping – Contact management– Transaction Coordination

Additional Ways to Find ProfitAdditional Ways to Find Profit

- Creating an On line office environment

- Co-op Marketing- Lead Tracking/Managements tools- Taking control of your expenses

Events• Upcoming Events with registration functionality & chargeback to agents

• Pay History/Transaction reports• Expense Statements• On Line Document Storage

Thereby creating a “Green” office

On-Line Access

Co-Branding• Advertising

• Assign and track leads

•Automatic fee tracking

Lead Tracking/Management

Where to go from here?

• Set objectives in each of the areas of Revenue/Expenses/Agents

• Implement recognition program for goal achievement

• Review and prioritize operating costs• Analyze agent activity and profitability

Q & A

Let us show you what over 3,000 Offices in 50 U.S. states and 10 Canadian provinces have discovered!“Thank you for our fantastic

management software and your tremendous support” – Dave Gravelle

“I couldn’t do business without it” - Jeff Moore

“I could not recommend a better software” – Michael Joe Cason

“I couldn’t run my business without it” – Tom Baron

“Would I do business without Lone Wolf? NOT A CHANCE” – Rich La Rue

“Lone Wolf Realty Management Software changed my life at work” – Pam McMullin

“It’s a great program!” – Bob Marion

“Honestly, I can not understand how anyone can run a Real Estate office with any other system” – Wes Coons

Contact UsLone Wolf Real Estate Technologies

231 Shearson Crescent, Suite 310

Cambridge, Ontario

Canada

N1T 1J5

www.lwolf.com

sales@lwolf.com

866-CRY-WOLF