Anyone who has succeeded in business will tell you that goal setting is of paramount importance. Goals give us motivation, allow us to better visualize what we want to achieve, and make us harness our efforts to produce desirable outcomes. Notwithstanding, the concept of goal setting has somewhat of a pretentious image. Goal setters tend to be thought of as ‘high flyers’, or more entrepreneurially minded than the rest of the population. However, in reality, goals can be as mundane as pledging to yourself that you will do twenty press ups when you get up every morning before work.
Unfortunately, because goal setting is held in such high esteem in many quarters, it means that some people are turned off the idea of doing it, because it appears too daunting. Nonetheless, companies that set clear goals outperform those that don’t ten fold. Therefore, as an investor, you should identify which real estate investing goals will boost your underlying profits, and determine how to go about accomplishing them in an effective way. Keep reading for some helpful ideas.
Quantifiable goals will boost your morale, by enabling you to monitor your successes. Setting metric based goals, with key performance indicators, allows you to evaluate your improvements and what quantity of work still has to be completed. By taking the time to monitor your efforts, you increase the likelihood that you will hit deadlines. Also, you will experience greater excitement as the end result gets nearer. If you try to pursue unquantifiable goals, you are more prone to become distracted and stray off course.
Let us assume that you wish to accumulate $10,000 in savings by the year’s end. Rather than sticking with that as a general goal, go into greater detail and promise yourself that you will deposit an additional $500 into your bank account every week. This means that you can monitor precisely how much you are accumulating, and quickly top up the account if you inadvertently miss a week.
All goals you set with regards to buying real estate should be clearly defined. Specify each aspect of the goal, and devise a series of logical actions to achieve it. If you wish to increase your profits this this year, you should not make your goal: “I will boost my company’s revenue”. Instead, you should say: “I will boost my company’s revenue this year, so I can spend more on advertising next year. I will begin by making my systems more efficient, and analyzing my customer acquisition methods. I will require the assistance of employee A and employee B to fulfill this goal”.
Although you do not have to do this, it is sometimes useful to write a list of every step involved to reach a goal, then draw a line through each step when it is complete. It is often said that putting your goals down on paper increases the probability that you will accomplish them. Therefore, you have every reason to make the additional effort needed to gain an edge. When writing your goals down, make sure that you are clear about why the goals are important, what you are attempting to achieve, what resources you require to achieve the goals, how accomplishing (or failing to accomplish) the goals will impact on your company’s profits, and who you will have to involve to reach the goals successfully.
When it comes to selling real estate, it is vital to set relevant goals that impact on your existing business model. Deciding that you wish to become a commercial property company director one day, while you are currently wholesaling local real estate on a part time basis to make ends meet, would not be classed as ‘relevant’. Of course, there is nothing wrong with having long term ambitions (these dreams can be an excellent source of motivation). However, with respect to improving the bottom line of your business, relevant goals are more important.
Frequently, people involved in flipping real estate set unrealistic goals for themselves, which they have no chance of achieving. Novice property investors should not expect to sell fifty homes in their first twelve months of trying. If you wish to succeed with rehabbing properties, you have to be modest in your expectations initially, or you will end up crashing and burning. This will deter you from trying to set goals at all.
Every goal you set should be sufficiently challenging to tap into your resources and test your capabilities, but sufficiently realistic to achieve. Consider whether you have given yourself enough time to achieve your goals, whether you are financially prepared to reach your goals, and what obstacles you expect to encounter when trying to accomplish your goals. Spend some time addressing every negative situation that might stop you from reaching your goals, and identifying the measures you will take to overcome those issues if they arise. This way, you will be prepared to deal with any hurdles that block your path to success.
The final piece of advice is fairly simple: adopt deadline driven goals. There’s a big difference between saying that you wish to learn more about property investing this year, and scheduling appointments to attend REI club meetings, networking events and/or industry conferences several times each month for half a year. You will reduce distractions by setting a timeframe for accomplishing each specific goal. Decide what actions you will take today, and over the coming weeks and months, to reach your goal half a year from now. Know how your half year goal will assist you in accomplishing your yearly goals, and how your yearly goals will assist you in accomplishing your longer term goals. To stay motivated, always treat yourself whenever you reach different milestones. This has a powerful psychological effect.
You are much more likely to succeed with real estate investing, if you set sensible business goals. Therefore, when you next find yourself fantasising about a wealthy retirement, take a step back and put your thoughts down in writing. By doing this, you can make sure that your goals are clear, realistic, deadline driven, relevant and achievable.