Three Strategies to Transition from MLO to Business Owner
The mortgage and real estate industries are in a state of flux. As we stare down the barrel of margin compression and technology disruption, real estate professionals must ask whether they are a salesperson or a business owner. We believe that building a technology-enabled local business is the best insurance against change. When your practice is predictable, survivable and scalable and you will continue to win.
1. Predictability – Know Your Numbers
I accidentally worked for a Fortune 250 company for a few years. One of the many things I learned is that predictability is king. In fact, one of the core operating principles was “no surprises.” As salespeople, we are chronic over-estimators and are often surprised when we come up short. Knowing your numbers is a game-changer in the conversion from salesperson to business owner. Predictability gives the power to make capital and people investments with confidence.
The Predictability Solution
Implement a Business Operating Platform to track everything from activity to results. Track your calls, track your leads, track your results. We deliver weekly end to end performance metrics that include: 1) Activity, 2) Results and 3) Pipelines. This allows us to predict what we will close 60 days from now and identify gaps before they become P&L problems.
2. Survivability – Who Does What
It seems the standard measure of business survivability is the “hit by a bus” test. While we can probably come up with a more favorable scenario, this one does the job. When you are not there, what happens? When you are out for a week, does your business grow, maintain or shut down completely? Unfortunately, most entrepreneurs lack the systems, processes and simple rules to ensure it grows when they go.
The Survivability Solution
Master your workflow, because brutal clarity about who does what when gives you a plug and play system that works without you. NV maintains a workflow document for each team, so when someone is out, we divy up the tasks and don’t miss a beat. Because of the system, team members cover each other without stress or incident. Our rainmakers track every lead and we use great systems to receive referrals from our Realtor Partners. A fellow MLO can step in without missing a beat, for one day or the long haul.
3. Scalability – Pull The Right Levers
The third essential strategy is the ability to scale your business. Growth can be challenging, but so is compression. A scalable business is an adaptable business, you can change acquisition strategies, modify the process to accommodate new technology. How quickly can you adapt? Scalability is dependent on seeing the change and moving quickly enough to protect what you have built. What percentage of your business comes from one source? Is your platform built to move quickly from a purchase market to refinance?
The Scalability Solution
No Lead Left Behind (NLLB) is the discipline of tracking every activity along with the stage and priority of every lead. When you practice NLLB, you know your ROI on every dollar an hour. You invest in people or marketing knowing what a win looks like. With this power, you have a volume knob on our business. When you need more business, or to pivot strategies, or hire, you know who, how and where.
When you loan or real estate business is predictable, survivable and scalable you graduate from solopreneur to business owner and as a side bonus, you get to go on vacation and turn your phone off.