Snakes, Ladders and Day One
The real estate industry is always a game of snake and ladders. Sometimes you are climbing and sometimes you are sliding. It’s an industry notoriously filled with feast and famine. And depending on which side of the market you are on right now; you are either feeling like you are at square one and you are having to reinvent yourself or you are in the builder space, and you need to prepare for the square one that’s coming. But no matter which side of the coin you are on, one thing is for sure, you must never lose sight of square one. Amazon calls this Day 1 thinking. It is the foundation and core of who they are as a company and huge reason for their success. The Day 1 mentality means that even though Amazon is well established and successful, the company treats every day like it’s the first day of their new startup. It’s the avoidance of complacency and the focus on the fundamentals.
I think Jeff Bezos describes day 1 thinking best by giving his definition of day 2. In an all-hands Q&A meeting he said, “Day 2 is stasis. Followed by irrelevance. Followed by excruciating, painful decline. Followed by death. And that is why it is always Day 1.” -Jeff Bezos (Watch the Video)
The producers, teams and companies in mortgage that have lost sight of day 1 are quickly speeding towards a Bezos described day 2 death. These companies/ teams have slowed in their decision-making ability, milk profits, have become bloated and less agile, and are moving further and further away from the customer. They are more focused on internal challenges rather than the customer. They have come to believe that all they must do is cut costs and continue to layoff to stay alive. But that won’t work. Because at the end of the day, if you are not growing, then you are dying. And if you are not focused on staying in day one mode, then soon you will be lost to day 2.
The greats never lose sight of Day 1!
Ways to avoid day 2:
Questions to ask:
What are the ‘fundamentals’ in your business? Where do you need to get back to the basics?
What are some of the things you were doing in the beginning that allowed you to grow and build? What gave you momentum and served as the core or foundation for your success today?
Where do you need to be more focused on the customer?
How can you get back into growth mode?
Day 1 mentality tips:
Stay hungry
Stay nimble, agile, and flexible
Stay frugal and lean (eliminate waste)
Stay obsessed with the customer
Stay in growth mode
Stay thinking big
Stay open to calculated risk
Stay focused on talent (acquiring, retaining, and cultivating)
Stay connected to the data (know your numbers)
Stay untethered to “your way”
Stay embracing external trends
Stay balanced between growth, profit, and capital management
Mortgage Origination basics:
Count and focus on growing your conversation and appointments with agents & buyers
Presentations, Presentations, Presentations… How many did you do this week?
Follow-up, Follow-up, Follow-up. (agents, buyers and recruits)
Don’t ignore your database. Even with higher rates, it’s still a goldmine.
Review your PQ, Application, and pull through numbers regularly
Know your breakeven numbers (for you, your team, your branch, your region, or your company)
Eliminate waste. What marketing, expenses or resources are not bringing value?
Where can you improve your operational process?
What can you do to provide value to your customers, referral partners and teams. Providing value is the root of ALL success.
Things to read:
https://drgurner.substack.com/p/why-youre-not-beyond-square-one
Quotes:
"Some lessons have to be experienced to be learned." James Clear
“The best never lose sight of Square One” Dr. Gurner
“Get the fundamentals down and the level of everything will rise” – Michael Jordan
“Out of your vulnerabilities will come your strengths” – Sigmund Freud
Videos to watch:
This video is good to watch. It helps you understand what buyers and agents are hearing about the market. It also has some interesting and relevant data to the market. He sensationalizes the data but it’s still good information.
Things to Discover:
Realtors and builders are on pins and needles about what is going on in the market so staying informed and keeping them in the know is a simple value add to give them. This website from Rocket summarizes data by market nicely. Who says you can’t use your competitions tools to your advantage? 😊
Rocket Homes Real Estate Trends:
https://www.rockethomes.com/real-estate-trends/tx/san-antonio
Cool Stuff:
Easy way to keep your knives sharp