The first thing to realize is that there are no answers. Now that we have that out of the way, let’s focus on the things you can actually do to prepare your business to survive during this economic uncertainty. I talk with Jason Medley from Collective Genius, one of the best real estate masterminds in the country, about the advice he gives to all of his investors.
It’s like we’re a bike that’s shifting gears, and right now the gears are grinding and haven’t caught yet. They’re making a terrible sound, and everything feels uncertain, and we’re waiting for them to catch so that we can take off again. We’re in the gap right now.
Everything in real estate is paused or waiting. Buyers are pulling out, trying to sit out for a better deal. Sellers don’t want to admit that they can’t make as much money now as they could a few months ago. And you can’t buy. We’re all just waiting for everything to catch and go together again so we can shift into a different gear.
While you’re waiting for the gears of the economy to catch, Jason says you need to:
- Manage your costs and expenses.
- Manage your liquidity and cash.
- Communicate at a level you’ve never communicated at before.
- Be planning and stabilizing the ship.
Jason explains the profit first model of revenue minus profit equals expenses, and how it makes a difference for a business during lean times. The PNL statement is going to be your key in helping you make some of those tough decisions coming at you. Jason walks through what that might look like for you.
The virus is not the problem. The virus is only revealing the problems in your business that have been neglected prior to its showing.
Watch and learn:
Listen and learn:
- Scaling responsibly will turn your business into a cash cow.
- How money and liquidity aren’t the same, but still both matter for your profitability.
- Why you absolutely have to have a PNL, and utilize it.
- Going through and figuring out what you need to let go before you need to do it will free up a lot of your mental headspace.
- Why now is the absolute worst time to quit your mastermind.
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