I have learned from my real estate mentor, Trace Trajano, that to be successful in business you must understand by heart these 3 M’s.
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There are three M’s to Successful business.
- Mindset
- Mechanics
- Money
Mindset: This is crucial because without it nothing else matters. The first thing your friend needs to do is change his mind set on letting go of control. As a business owner we tend to want to hold onto control as much as possible because we are fearful of everything going to hell in a hand basket if we let go of it.
However I have learned the more control you let go of the easier it becomes to have more it. That sounds strange so I’ll explain.
When you want to have your hand on every lever in your business you go into what I call an “octopus mode”. You think you have enough hands to handle everything in your business, but in reality you do not. You eventually get worn out and ultimately quit or go bankrupt. This can all be avoided when you redefine what your business is designed to deliver for you.
It’s your business therefore you have a purpose for its existence. It isn’t there to make you a slave. It’s there as your liberation vehicle so you don’t have to work 9-5 at some dead end job that could care less about you. It is there so when you sleep it still works around the clock… especially on the Internet. It is there to provide some security as you watched it grow and saw how it worked from the beginning. You know your business better than anyone and you will NEVER find someone as good as you to run it (so you think).
A solution to getting out of your business is adamantly seeking someone that is 80% as good as you. You can find talented and people willing to learn off Craigslist now for 50% off their regular pay. Your friend must be willing to TRAIN this person on a consistent basis. A good way I have found to accomplish this is doing ROLE PLAYING. You both sit down and one person is the homeowner and the other is the investor or agent. You spend hours training on what the homeowner might say, how to rebuttal it, when to close, how to close, what NOT to say, why you don’t say it etc. You invest in this person. You also make sure this person takes the Kolbe.com test. This will show both of you their strengths and you want to make sure they are operating out of those strengths for them to be happy and productive long term.
Mechanics: These are the systems. These are the Standard Operating Procedures (S.O.P’s) for business. This is the software. The management systems. The Human Resource systems. The Customer Retainer system. The step-by-step processes for every major department in his business. This is the entire break down from soup to nuts on “how to do” his business. If he hasn’t put one of these together Steve Cook has an excellent “Business Plan” course where he provides an easy template to follow to show a banker if you wanted a loan. Once the systems are broken down and easily explainable, they sort of take care of themselves just as long as you have someone that is at least competent to run them.
Money: This is funny to me because so many business owners ONLY focuses on the money. It’s the end goal. It’s what they live and die for. Without it you feel horrible and with it (without proper Mindset) you can’t get enough of it. The ironic thing is this. Even though your friend is focused on money he will probably make less of it. The reason is he isn’t focusing on Mindset. I know this because He’s PERSONALLY STILL RUNNING HIS BUSINESS AND PULLING THE LEVERS ON A DAY TO DAY BASIS KILLING HIMSELF MORE EACH DAY! Don’t get me wrong. There is nothing wrong with strong work ethic and persistence. But you MUST have the MINDSET or it simply doesn’t matter. Nothing matters.
So here’s a rather simple break down in concept to get your friend going in the right direction.
1. Post a job opening advertisement on Craigslist tomorrow and over the weekend evaluate the responses. Have him write in the ad and be honest on what he is looking for. Then tell the prospects to respond WHY they think they would be the best candidate for the position.
2. Take all those applications and responses and go through each one setting aside ONLY the ones that really stood out to him.
3. Devote 2 hours without interruption and call back the candidates.
4. Set up a day to hold interviews
5. Pick the candidates that seems to be the most driven, have initiative, have team player attitude, yet loyal to the task and ready to get started asap.
6. DECIDE and pick a candidate. Then start immediately doing ROLE PLAYING and training this person in how to talk to homeowners, paperwork used to have them sign and all the mechanics etc.
7. Start giving this person leads and sending them out in the field to do work.
8. Hopefully this person performs well so you can start paying them to train others. They become a manager...They report to your friend...The person they train reports to them.
Thus you are now starting to empower them too.
9. For accountability, they are required to read one of your investor courses, or books about motivation or staying positive every month. They report to your friend about this book and what they learned from it and applied to their life and your friends business.
10. Use this basic model and split up your friends different departments and make a goal to have a manager for each department.
Where does all the money come from to pay these people? Are you kidding me? Do you realize that for $500 -1000 (one assignment fee) , plus bonuses… you can get 20 or more hours of your life back? This doesn’t even count the money this person will make for your business. The deals you close together and pay them X and you basically make money for doing nothing.
The more control your friend can give away from personally moving the “levers” in his business, the easier it will be for him to get his sanity back and actually make money without working for it.
I know this was long, but I hope this helps.
Remember... be a servant,
Cory Boatright
Loss Mitigation Specialist
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