Stop Eliminating Expenses!

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Anthony: Expenses, expenses, expenses. Too many people, when they’re running their business, stay too focused on decreasing expenses. They become obsessed with the bottom line. Stay with me, but what they think is the only way to achieve a fatter bottom line is to decrease expenses. They lose sight of the fact that if they drive revenue and bring revenue higher, everything else falls in place most of the time.

See, this is something that I noticed. We’re involved in a few different businesses and our company is, and I’ve been a student of business for a very, very long time, obviously running the real estate company and we are involved in some other endeavors and I’m involved in a family business and as well. What I find when I talk to friends all over the place, local and afar, that they’re too focused on– As soon as I say, “Well, what if you implement this or what if you implement that?” Their rebuttal to me, eight out of 10 people that I talk to is, “Well, that would add $800 a month to my expenses.” I’m like, “Okay, cool. How much more revenue will it bring you in?” “Well, I don’t know. There’s a big risk involved and after, it could take six months.” I’m like, “Okay, great. Even if it takes six months, so six times eight, $4,800.”

Wow, what does that add? What does that add in revenue? If it takes six months, nothing’s coming in and then all of a sudden, you add $10,000 a month. In another six, you’re breakeven, and after that it’s gravy. If it brings in another $30,000 a month, do the math. The point I’m getting at is, one thing that I find with many, many realtors, many broker-owners, is you’re just too obsessed with demolishing expenses, decreasing expenses, eliminating expenses. You’re not focused enough on how do I drive revenue? How do I increase sales?

When I get up in the morning, the number one thing I focus on is helping our agents grow their business, doing anything and everything that I can possibly doing to help them achieve more sales. I do that knowing all the time that I’m going to spend some money, right? We’re going to spend money. We’re going to front money. We have these crazy new initiative going. I’m not going to get into it, it hasn’t been announced yet. We got this crazy new initiative going, a lot of upfront costs.

Well, I think it’ll work. If I feel more than 50% sure that something will work, I’ll throw money on the table. Now, here’s what’s funny. I’m not a gambler. If I go to a casino, I don’t spend a dollar. I was at the beautiful Wynn Resort in Vegas, three, four weeks ago. I didn’t spend one penny gambling because I gamble in my business everyday. I take calculated gambles.

The point I’m getting at is, when you were evaluating your business and you’re looking at how to make more money, you should put some more thought into how do I drive revenue? How do I create more sales? How do I bring in more money? How do I bring in more commission, if you’re a realtor, right, which most of you are that are watching this. Try to change the way you look at it.

Bob Proctor would call it your paradigm. If your paradigm and your brain is trained to always be expense-focused and be a pessimist, you’re not going to grow. We’ve lost more money than you can imagine to make more money later. Think about that. Think about spending money to grow instead of cutting, cutting, cutting. I’ve seen businesses run into trouble before and cut expenses, cut expenses, cut expenses. In the beginning, that’s necessary. When COVID hit last year, we did that for about a month, but you can also cut expenses to death. Does that make sense? I hope it does.

Think about that. Post your questions if you have them. I’ll come back later and talk to you about it more. Have a good night.