navigating these times as a in real estate · reduce fixed costs revert to some higher margin work...
Transcript of navigating these times as a in real estate · reduce fixed costs revert to some higher margin work...
![Page 1: navigating these times as a in real estate · reduce fixed costs revert to some higher margin work grow your rent roll buy an additional rent roll revert to interest-only renegotiate](https://reader033.fdocuments.us/reader033/viewer/2022042318/5f078fe77e708231d41d99dd/html5/thumbnails/1.jpg)
navigating these times as a business owner in real estate
WEBINAR20 JUN 2020
![Page 2: navigating these times as a in real estate · reduce fixed costs revert to some higher margin work grow your rent roll buy an additional rent roll revert to interest-only renegotiate](https://reader033.fdocuments.us/reader033/viewer/2022042318/5f078fe77e708231d41d99dd/html5/thumbnails/2.jpg)
this is getting real, real fast
![Page 3: navigating these times as a in real estate · reduce fixed costs revert to some higher margin work grow your rent roll buy an additional rent roll revert to interest-only renegotiate](https://reader033.fdocuments.us/reader033/viewer/2022042318/5f078fe77e708231d41d99dd/html5/thumbnails/3.jpg)
our industry is going to be affected and
you need to act to protect you, your family
and your business
![Page 4: navigating these times as a in real estate · reduce fixed costs revert to some higher margin work grow your rent roll buy an additional rent roll revert to interest-only renegotiate](https://reader033.fdocuments.us/reader033/viewer/2022042318/5f078fe77e708231d41d99dd/html5/thumbnails/4.jpg)
let’s get ready for whatever lies ahead
![Page 5: navigating these times as a in real estate · reduce fixed costs revert to some higher margin work grow your rent roll buy an additional rent roll revert to interest-only renegotiate](https://reader033.fdocuments.us/reader033/viewer/2022042318/5f078fe77e708231d41d99dd/html5/thumbnails/5.jpg)
1.calculate cash + profit breakeven point
![Page 6: navigating these times as a in real estate · reduce fixed costs revert to some higher margin work grow your rent roll buy an additional rent roll revert to interest-only renegotiate](https://reader033.fdocuments.us/reader033/viewer/2022042318/5f078fe77e708231d41d99dd/html5/thumbnails/6.jpg)
breakeven
reduce fixed costs
revert to some higher margin work
grow your rent roll
buy an additional rent roll
revert to interest-only
renegotiate loan repayments
defer some tax payments
focus on staff mix
![Page 7: navigating these times as a in real estate · reduce fixed costs revert to some higher margin work grow your rent roll buy an additional rent roll revert to interest-only renegotiate](https://reader033.fdocuments.us/reader033/viewer/2022042318/5f078fe77e708231d41d99dd/html5/thumbnails/7.jpg)
breakeven analysispr
ofits
breakeven point
overheads
level of sales
![Page 8: navigating these times as a in real estate · reduce fixed costs revert to some higher margin work grow your rent roll buy an additional rent roll revert to interest-only renegotiate](https://reader033.fdocuments.us/reader033/viewer/2022042318/5f078fe77e708231d41d99dd/html5/thumbnails/8.jpg)
2.review your costs + cut some if you can
![Page 9: navigating these times as a in real estate · reduce fixed costs revert to some higher margin work grow your rent roll buy an additional rent roll revert to interest-only renegotiate](https://reader033.fdocuments.us/reader033/viewer/2022042318/5f078fe77e708231d41d99dd/html5/thumbnails/9.jpg)
cut costs
casual wages
permanent team wages and salaries
non-performing salespeople
subscriptions you are not using
don’t fund advertising for others
growth costs like BDM or sponsorships
try and get out of the lease or get a subtenant
![Page 10: navigating these times as a in real estate · reduce fixed costs revert to some higher margin work grow your rent roll buy an additional rent roll revert to interest-only renegotiate](https://reader033.fdocuments.us/reader033/viewer/2022042318/5f078fe77e708231d41d99dd/html5/thumbnails/10.jpg)
3.focus on incremental profits
![Page 11: navigating these times as a in real estate · reduce fixed costs revert to some higher margin work grow your rent roll buy an additional rent roll revert to interest-only renegotiate](https://reader033.fdocuments.us/reader033/viewer/2022042318/5f078fe77e708231d41d99dd/html5/thumbnails/11.jpg)
incremental profits
Sales
PM
Principals
Admin / Shared services
other specialist divisions
![Page 12: navigating these times as a in real estate · reduce fixed costs revert to some higher margin work grow your rent roll buy an additional rent roll revert to interest-only renegotiate](https://reader033.fdocuments.us/reader033/viewer/2022042318/5f078fe77e708231d41d99dd/html5/thumbnails/12.jpg)
focus on incremental profits
income
sales pm principals total
$ $ $ $
$ $ $ $
$ $ $ $
$
$
- expenses
= profit contribution
- net shared services
= operating profit
![Page 13: navigating these times as a in real estate · reduce fixed costs revert to some higher margin work grow your rent roll buy an additional rent roll revert to interest-only renegotiate](https://reader033.fdocuments.us/reader033/viewer/2022042318/5f078fe77e708231d41d99dd/html5/thumbnails/13.jpg)
$ and %’s
income
sales pm principals total
% % % $
% % % %
% % % %
%
%
- expenses
= profit contribution
- net shared services
= operating profit
![Page 14: navigating these times as a in real estate · reduce fixed costs revert to some higher margin work grow your rent roll buy an additional rent roll revert to interest-only renegotiate](https://reader033.fdocuments.us/reader033/viewer/2022042318/5f078fe77e708231d41d99dd/html5/thumbnails/14.jpg)
4.be prepared for emotional stress
![Page 15: navigating these times as a in real estate · reduce fixed costs revert to some higher margin work grow your rent roll buy an additional rent roll revert to interest-only renegotiate](https://reader033.fdocuments.us/reader033/viewer/2022042318/5f078fe77e708231d41d99dd/html5/thumbnails/15.jpg)
emotional stress
personal financial stresses maybe their partner or extended family have lost their job
different personality types react differently to different situations
prepare a coronavirus policy or update and review your leave policies
not only may your team have their own financial stresses, you need to also consider their emotional stresses
![Page 16: navigating these times as a in real estate · reduce fixed costs revert to some higher margin work grow your rent roll buy an additional rent roll revert to interest-only renegotiate](https://reader033.fdocuments.us/reader033/viewer/2022042318/5f078fe77e708231d41d99dd/html5/thumbnails/16.jpg)
5.review yoursupplierarrangements
![Page 17: navigating these times as a in real estate · reduce fixed costs revert to some higher margin work grow your rent roll buy an additional rent roll revert to interest-only renegotiate](https://reader033.fdocuments.us/reader033/viewer/2022042318/5f078fe77e708231d41d99dd/html5/thumbnails/17.jpg)
supplier arrangements
be upfront with your creditors
asking providers to defer the payment of upfront costs into the future
recovering VPA upfront is critical to the success of your business
![Page 18: navigating these times as a in real estate · reduce fixed costs revert to some higher margin work grow your rent roll buy an additional rent roll revert to interest-only renegotiate](https://reader033.fdocuments.us/reader033/viewer/2022042318/5f078fe77e708231d41d99dd/html5/thumbnails/18.jpg)
6.invest in technology
![Page 19: navigating these times as a in real estate · reduce fixed costs revert to some higher margin work grow your rent roll buy an additional rent roll revert to interest-only renegotiate](https://reader033.fdocuments.us/reader033/viewer/2022042318/5f078fe77e708231d41d99dd/html5/thumbnails/19.jpg)
technology
change how we work and make flexible/remote working
adoption is much more successful because you NEED the change to work
talk to someone else who has already implemented the technology you are looking at
![Page 20: navigating these times as a in real estate · reduce fixed costs revert to some higher margin work grow your rent roll buy an additional rent roll revert to interest-only renegotiate](https://reader033.fdocuments.us/reader033/viewer/2022042318/5f078fe77e708231d41d99dd/html5/thumbnails/20.jpg)
7.time for a merger or exit
![Page 21: navigating these times as a in real estate · reduce fixed costs revert to some higher margin work grow your rent roll buy an additional rent roll revert to interest-only renegotiate](https://reader033.fdocuments.us/reader033/viewer/2022042318/5f078fe77e708231d41d99dd/html5/thumbnails/21.jpg)
merger or exit
buy a rent roll
good time to sell
1+1=3 result
![Page 22: navigating these times as a in real estate · reduce fixed costs revert to some higher margin work grow your rent roll buy an additional rent roll revert to interest-only renegotiate](https://reader033.fdocuments.us/reader033/viewer/2022042318/5f078fe77e708231d41d99dd/html5/thumbnails/22.jpg)
8.behuman
![Page 23: navigating these times as a in real estate · reduce fixed costs revert to some higher margin work grow your rent roll buy an additional rent roll revert to interest-only renegotiate](https://reader033.fdocuments.us/reader033/viewer/2022042318/5f078fe77e708231d41d99dd/html5/thumbnails/23.jpg)
be human
1. Audit
2. Review
3. Setup
4. Test
5. Do
![Page 24: navigating these times as a in real estate · reduce fixed costs revert to some higher margin work grow your rent roll buy an additional rent roll revert to interest-only renegotiate](https://reader033.fdocuments.us/reader033/viewer/2022042318/5f078fe77e708231d41d99dd/html5/thumbnails/24.jpg)
everyone on the buseveryone facing the frontsomewhere to drivesomeone at the wheel
![Page 25: navigating these times as a in real estate · reduce fixed costs revert to some higher margin work grow your rent roll buy an additional rent roll revert to interest-only renegotiate](https://reader033.fdocuments.us/reader033/viewer/2022042318/5f078fe77e708231d41d99dd/html5/thumbnails/25.jpg)
9.get someaccountabilty
![Page 26: navigating these times as a in real estate · reduce fixed costs revert to some higher margin work grow your rent roll buy an additional rent roll revert to interest-only renegotiate](https://reader033.fdocuments.us/reader033/viewer/2022042318/5f078fe77e708231d41d99dd/html5/thumbnails/26.jpg)
the most important part of accountability is the discussion
![Page 27: navigating these times as a in real estate · reduce fixed costs revert to some higher margin work grow your rent roll buy an additional rent roll revert to interest-only renegotiate](https://reader033.fdocuments.us/reader033/viewer/2022042318/5f078fe77e708231d41d99dd/html5/thumbnails/27.jpg)
who’s sleeping on your couch?
![Page 28: navigating these times as a in real estate · reduce fixed costs revert to some higher margin work grow your rent roll buy an additional rent roll revert to interest-only renegotiate](https://reader033.fdocuments.us/reader033/viewer/2022042318/5f078fe77e708231d41d99dd/html5/thumbnails/28.jpg)
10.tip somemoney in
![Page 29: navigating these times as a in real estate · reduce fixed costs revert to some higher margin work grow your rent roll buy an additional rent roll revert to interest-only renegotiate](https://reader033.fdocuments.us/reader033/viewer/2022042318/5f078fe77e708231d41d99dd/html5/thumbnails/29.jpg)
money $$$
track down some personal cash to tip into the business
track down some personal cash to tip into the business
talk to the banks or your friendly broker now
you may need to
![Page 30: navigating these times as a in real estate · reduce fixed costs revert to some higher margin work grow your rent roll buy an additional rent roll revert to interest-only renegotiate](https://reader033.fdocuments.us/reader033/viewer/2022042318/5f078fe77e708231d41d99dd/html5/thumbnails/30.jpg)
get on thefront foot
![Page 32: navigating these times as a in real estate · reduce fixed costs revert to some higher margin work grow your rent roll buy an additional rent roll revert to interest-only renegotiate](https://reader033.fdocuments.us/reader033/viewer/2022042318/5f078fe77e708231d41d99dd/html5/thumbnails/32.jpg)
watch out for squirrels
![Page 33: navigating these times as a in real estate · reduce fixed costs revert to some higher margin work grow your rent roll buy an additional rent roll revert to interest-only renegotiate](https://reader033.fdocuments.us/reader033/viewer/2022042318/5f078fe77e708231d41d99dd/html5/thumbnails/33.jpg)
sales are vanityprofit is sanitycash is reality
![Page 34: navigating these times as a in real estate · reduce fixed costs revert to some higher margin work grow your rent roll buy an additional rent roll revert to interest-only renegotiate](https://reader033.fdocuments.us/reader033/viewer/2022042318/5f078fe77e708231d41d99dd/html5/thumbnails/34.jpg)
payroll taxQLD government has also come out and provided some deferrals of payroll tax lodgements and payments
economic stimulus packageQLD government will also be offering loans for up to $250,000 to eligible businesses, with a 12-month interest free period
other supportFederal government is getting out the cheque book to stimulate the economy as a result of the impact of the Coronavirus
![Page 35: navigating these times as a in real estate · reduce fixed costs revert to some higher margin work grow your rent roll buy an additional rent roll revert to interest-only renegotiate](https://reader033.fdocuments.us/reader033/viewer/2022042318/5f078fe77e708231d41d99dd/html5/thumbnails/35.jpg)
want to know more?
https://businessdepot.com.au/blog/government-cheque-book-to-ease-pressure-on-coronavirus-economy/
https://businessdepot.com.au/blog/coronavirus-what-to-do-in-real-estate-business
https://businessdepot.com.au/blog/queensland-government-coronavirus-stimulus-package/
get some insight @ businessdepot.com.au/blog/