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2020 KPI’s for 2021 Projections

2021 is right around the corner and I wanted to remind everyone how important it is that you know your numbers in your business.

Not only that, but how to use those numbers to make plans for the next fiscal year.

Every year around this time I start planning for the next year ahead!

Many successful business owners who is are multi-millionaires will tell you, if you’re trying to run a REAL business, you need a plan.

And most importantly, you need to know your numbers!

So with that said, I wanted to dive into some of my planning/goals for 2021.

You will also find KPI’s, goals and the valuable lessons I learned 2020.


2020 NUMBERS

So I only started doing deals in January of this year (2020). I also run a digital marketing agency that use to take up most of my time.

After getting sick of dealing with clients, I decided to just start doing my own deals instead of building someone else’s business.

KPI #1: (Time spent on the business)

I use https://toggl.com to track all of my time spent on tasks daily. It’s free to use and it’s just like punching into a time clock at a 9-5.

I track each individual project that I work on so I can pinpoint each minute I spend on my business, websites, clients etc.

This holds me accountable and helps me remain extremely productive.

After looking at my reports, I found out that I only worked around 20hrs per week on my real estate business personally for the whole year.

Now, that wasn’t every single week, but it was the average for the whole year.

There were many times that I wouldn’t work for multiple days at a time, and paused marketing + calls with sellers completely for days/weeks/months at a time.

I hired 2 VA’s last year and they worked a total of 30/hrs per week for about 3 months or so.

After adding up all the time between the three of us for the full year, it came out to:

Total hours = 1,320 (myself and VA’s worked part-time)

When you average those hours by 12 months (the full year) then divide by another 4 weeks (one month) it comes out to around:

7.5hrs per week for my VA’s (average over full year)
20hrs per week for myself (average over full year)

This time mainly consisted of cold calling, talking and texting sellers. In addition to planning, managing data etc.

KPI #2: (Time spent VS Revenue)

While doing this part-time I still managed to do around $80,000 in gross CLOSED wholesale fees in my first 12 months all virtually (they were all my deals. would have been more but a couple deals fell through of course).

I had JV partners so my cut was 50% of that ($40,000).

That is only CLOSED deals as well. I have another $110,000+ gross revenue in escrow currently.

When I first started out I really just wanted to prove my business model so I wasn’t trying to make super large assignments at first.

Now that I know my business model works and it’s scalable… my plan is to eventually go NATIONWIDE 👀

So now that I know how much I did in gross/net wholesale fees + flips + creative deals…

I broke down the following KPI’s (you will see how these all come together with projections at the end ).

1.) $30/hr on average (NET closed) – This is my net wholesale fees ($40,000) divided by the hours (1320) we spent on the business all year.

2.) $60/hr on average (gross closed) – This is my gross wholesale fees ($80,000) divided by the hours (1320) we spent on the business all year.

3.) $75/hr on average (NET pipeline + NET closed) – This is my net wholesale fees ($40,000) + my total net pipeline ($59,500) divided by the hours (1320) we spent on the business all year.

4.) $144/hr on average (gross pipeline + gross closed) – This is my gross wholesale fees ($80,000) + gross pipeline ($110,000) divided by the hours (1320) we spent on the business all year.

I break down the meaning so you know the difference between my NET/Gross wholesale fees VS NET/Gross revenue I have in my pipeline set to close:

 

Total NET = $40,000 (closed deals) – This is my cut of the wholesale fees after my JV partners got their split.
Total NET = $59,500 (in pipeline) – This is my cut of the revenue I have in escrow set to close after my JV partners get their split.
Total GROSS = $80,000 (closed deals) – This is the total gross of all revenue from my deals before I split with JV partners.

Total GROSS = $110,000+ (in pipeline) – This is the total gross revenue I have in escrow set to close before I split with my JV partners.

So you’re probably asking why these numbers are important?

The simple answer is…

So I can use them for projections for the next year.

For example…

Since I now know that I only worked 1,320hrs on my business last year all in and grossed $190,000 in revenue from my deals…

If I wanted to triple that number next year, all I would have to do is X 1,320 by 3 which would = 3,960hrs (this is the amount of hours I’d have to put in for 2021).

My revenue would then be $190,000 X 3 which would = $570,000.

If I break those hours down more…

I know that that instead of working the 27.5hrs per week that I did this year, I would now need to up those hours to 82.5hrs per week (3,960hrs divided by 12 months divided by 4 weeks)

You see how powerful that is????

KNOW YOUR NUMBERS!!!!
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This post is already super long, but I break down stuff even more for my business plan and projections.

Long story short, I plan to average 3 deals per month consistently next year for a total of 36 deals total for the year.

This includes flips, wholesales, wholetails, creative deals etc.

Total NET revenue is going to be around $432,000+

I have this broken down by quarter, then monthly numbers I need to hit.

Here’s a preview of the first quarter of next year:

January 2021  GOAL: $6,480 | Actual = TBD
February 2021 – GOAL: $24,000 | Actual = TBD
March 2021 – GOAL: $34,200 | Actual = TBD

Q1 = $64,800** | Actual = TBD

Here are some of the other KPI’s I developed for next year based off all the other data from last year.

KPI’s to meet my yearly goal:

✅ Qualified leads needed per week = 7
✅ Appointments needed per week = 2
✅ Signed contracts needed per week = 1
✅ Closed deals needed = 1 every 10 days
✅ Revenue per deal = $12,000 on average
✅ Total Revenue per week = $9,000 on average
✅ SMS needed a week = TBD

✅ Calls needed per week = TBD

Hopefully this helps!

Feel free to ask any questions below in the comment section: ✌✌✌✌✌✌✌

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