Posted by 101livescan on 2/24/13 5:24pm
Msg #457512

Business Economics 101~Profiting

Sometimes we become so busy, we forget to track and analyze what we're spending and how much money we're actually earning, net, after all our hard work. Kind of becomes reality when we're doing our taxes and realizing, hey, I'm just keeping the money in circulation and not getting to bank as much as I'd like. That's when you start cutting costs and watching car trips, making errands count...car and job sharing, etc.

Last year I gave up my foreclosure auctioneering contract with Recontrust after five years. Their business model changed. What started out as a clear winner for me turned out to be a real time bandit and the revenue dropped significantly by November 2012. It didn't make economic sense any more, and I terminated our agreement with 30 days notice. They found a replacement for me, he makes far less than I did. He is new to the business, they just don't pay what they once did, I have been doing this since the 80s. Now he realizes he's been lowballed and he's looking for another opportunity. Simply doesn't pay the gas it takes for him to do this work.

Our businesses need to be evaluated periodically too. Where do we cut. How do we realize more profit. At the end of the day, are you having a gain or a loss. Most of us have the equipment we need, occasionally we must upgrade, repair or replace...are you factoring in future upgrades? My HONDA CRV is turning 312K miles this week. Soon it will need replacing. Major expense. Had a great 2012..I'm prepared.

As the CEO/CFO/CTO/COO of your own companies, it is important I feel to know if it's a viable business, or if you're going broke keeping it going.

That is why if we accept low fees, we are not building our businesses, we're working for zilch. We need to do more than just put food on the table and make rent, we need to have a profit and loss statement, and more importantly, feel good about our profession and accomplishments.

Only work for the best! Don't allow yourselves to be lowballed below expectations.

Mike/IL, thank you so much for your earlier post...welcome to the club! Although you're new, you've caught on fast...I think we should all become whistle blowers when they offer up $50! you know it's not likely to get a lot better than that if that's where they are starting. Forget these companies. The UPRISING may bring about change for all of us, especially you new people. The OLDSTERS know better, we know who to talk to, you're all still learning.