Small businesses, particularly small rent rolls, can be hard to get profitable. In fact, when you first start your rent roll, it can feel like you’re burning money faster than you can possibly make it.
I know when I had my rent roll, it seemed to take FOREVER before I started paying myself, and the expenses just kept rolling in.
I remember the stress of trying to find enough money to pay my bills
I recall wishing for the day that I could pay myself a wage
I was wishing, hoping and praying for more clients, so that I could make more money, and at the same time wishing, hoping and praying for slower growth so that I didn’t have to work as hard and long
My self-esteem was starting to take a hit as I wondered when I would ever make more money
I couldn’t take time away to work ON my business because I was so stuck working IN my business that I didn’t know what I was doing wrong
But, with the benefit of hindsight, and the advantage of working with small rent roll owners every single day, I’ve discovered 3 secrets to making money in a small rent roll. So let me share them with you here…
Do your numbers! Personally, I hate the numbers side of business, but whenever I do them in my current business, and when I had my rent roll, I found so much clarity about where we were spending money, where we could make more money and how close I was to my financial goal. If you need help doing your numbers you can download the spreadsheet I used in my rent roll to forecast how much money I would make each month. Access that spreadsheet here.
Know your value. Have you ever noticed that some people start rent rolls and they grow super fast, and are earning amazing incomes straight away, and others grow slowly without much income to show for it? This is going to sound a bit “woo woo”, but I have to let my inner-hippy emerge sometimes. You will ALWAYS be paid what you believe you’re worth. Sometimes this means that your subconscious blocks you from earning enough money to pay yourself a wage and sometimes this means that your subconscious will manifest a big expense to stop your business from being profitable. There’s a lot to be said about learning to manage your mindset around money, income and paying yourself. There’s a video I love by Denise Duffield-Thomas titled When Should You Pay Yourself a Salary? And I encourage you to watch this.
Realise that small increases can result in huge income changes. For example, if you have a small start-up rent roll of just 50 managements, earning 6% commission, with an average rent of $400 per week, you’re earning about $1200 in commission each week. If you increase your commission by just 1% (which is about $4 per week, per client), you increase your earnings to $1400 each week. That means you’re making over $10,000 more each year! It’s a tiny change, that you can easily explain to your landlord clients (I did it several times while I owned my rent roll, and it’s quite an easy process – not as scary as you might think) and it makes a big difference to your bottom line.
Bonus Secret 4
This one isn’t really a secret though, getting more landlord clients will help you make more money too. So if that’s one of the steps you’re going to take, be sure to download my free guide on the 5 Things You Must Do To Get MORE Landlord Leads.
If you haven’t read my last blog titled “I don’t want to be the biggest, I just want to be the best” , be sure to check that out next!