Understanding Your Business at a Higher Level Through Tracking Key Numbers
One of the most important things I have my coaching clients understand about their businesses is knowing their numbers. The numbers can tell the story and identify the health of a business whether climbing the mountain or falling off the cliff. Knowing your numbers gives you the information to pivot, make incremental adjustments, or provides the blue print to scale. In sales specifically, knowing the conversion rate between key numbers provides the information to now make the business predictable. Ex. It takes me 10 leads to secure 5 new customers; a 50% conversion rate. Now if I want 40 new customers, I will need 80 leads.
What Numbers Should I Be Tracking
- Financial Numbers
- Productivity Numbers
In this post, I will stick to productivity numbers...look for a future post on the financials. What are the productivity numbers you should track and understand? Here is an example of looking at the key productivity numbers for a real estate agent.
Attempts to Contact
Contacts
Buyer Appointments
Buyer Appointments Held
Buyer Agreements
Buyer Contracts
Buyer Closings
Seller Appointments
Seller Appointments Held
Seller Agreements
Seller Listing Agreements
Seller Closings
GCI (Gross Commission Income)
Expenses
NET
There are several other numbers as a real estate agent you can track in regards to the business. The list above is a great place to start. Conversion ratios would provide you with clues on what skill sets to work on in your business. The numbers tell a story. If you're not currently tracking your numbers, start, and find someone to keep you accountable to build, what is likely to be, a new habit. Track and understand your numbers, and you will start to see the results making minor adjustments to your business. Know your numbers!
If you would like to understand how numbers play a role in your real estate business, connect with me today by setting up a FREE business strategy call. Follow the prompts, and you will receive instructions on how to connect on an online Zoom call. I look forward to connecting with you.
Onward and Upward,
Coach Jeremy Williams
Red Hawk Coaching
