The KW PROPERTY MANAGEMENT & CONSULTING Qtrly Newsletter is going to print, and this edition covers the topic of financial fraud in community associations.
The KW PROPERTY MANAGEMENT & CONSULTING Qtrly Newsletter is going to print, and this edition covers the topic of financial fraud in community associations.
These are the slides from my June 2009 presentation entitled 'Consummate Communicator' presented at the World Spinning and Sports Conference (WSSC) in Miami, FL.
We are students in our 2nd year of a BA (Hons) Professional Studies in Education. As a class we were asked to act as a 'community of practice' to explore different teaching and learning theories, the result was this presentation. Thank you Ann for inspiring us and getting us started.
121--- 3 postsMinimum 100 words each postBe positive and ask.docxmoggdede
121--- 3 posts
Minimum 100 words each post
Be positive and ask a question
+++++++++++++++++
Brandi –
It is very important to take the time to fully research many brokerages in ones area as it can have long lasting effects on a sales agent's career. When speaking to other agents I have been told to shop the most compatible corporate culture for myself as they can vary greatly. The broker you choose to work for will be more than your boss, they need to be your best friend and partner. They are the person who will have your back when things go less than perfect so you need to be able to trust them fully.
An agent shopping for a brokerage should take many things into consideration. The office itself should be measured. Is it in a desirable and easy to access location? Is it visually pleasing and is there ample parking? The other agents working for the brokerage should be diverse in experience. Does the brokerage offer marketing services? What kind of desk fees do they charge and what is the beginning commission split. They should have a visually pleasing web page that is easy to navigate. They should also have a good reputation in the community.
I have actually interviewed at two different brokerages so far and both were very reputable and offered great things for their agents. A big selling point for me was the type of support and education they offer to new agents. I wanted to know if they offer a post-license course or if I would have to take it online. I also asked if they offer a mentor program which both did. The biggest difference in the companies was commission split and diversity of agents. One offered a much larger commission split but had a much larger ratio of new inexperienced agent to experienced agent ratio. There were about 4 agents out of 5 with less that a year of experience. I felt I would prefer the office with more experienced agents and a lower commission split as a new agent as I can always earn more with a more secure base of experience behind me.
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Thomas –
The world of Real Estate has changed so much over the last few years. It used to be a lot of word of mouth, newspapers, and flyers. So many things changed when the world of the internet happened, let alone when social media took off. There are so many ways to reach your potential clients and even less expensive than running news paper ads. When I talk about it being cheaper than it is more of the idea that you are getting more for the money you are spending.
A lot of future agents may think that pay may be the most important thing. Yes, it is important to think about when researching future potential agencies that you want to work for. Not only pay, but benefits, agency success rate, also what could possibly work with your style of selling properties. I will be working with my father-in-law for his real estate firm when I complete my degree in just a couple of weeks. With his firm it was e ...
These are the slides from my June 2009 presentation entitled 'Consummate Communicator' presented at the World Spinning and Sports Conference (WSSC) in Miami, FL.
We are students in our 2nd year of a BA (Hons) Professional Studies in Education. As a class we were asked to act as a 'community of practice' to explore different teaching and learning theories, the result was this presentation. Thank you Ann for inspiring us and getting us started.
121--- 3 postsMinimum 100 words each postBe positive and ask.docxmoggdede
121--- 3 posts
Minimum 100 words each post
Be positive and ask a question
+++++++++++++++++
Brandi –
It is very important to take the time to fully research many brokerages in ones area as it can have long lasting effects on a sales agent's career. When speaking to other agents I have been told to shop the most compatible corporate culture for myself as they can vary greatly. The broker you choose to work for will be more than your boss, they need to be your best friend and partner. They are the person who will have your back when things go less than perfect so you need to be able to trust them fully.
An agent shopping for a brokerage should take many things into consideration. The office itself should be measured. Is it in a desirable and easy to access location? Is it visually pleasing and is there ample parking? The other agents working for the brokerage should be diverse in experience. Does the brokerage offer marketing services? What kind of desk fees do they charge and what is the beginning commission split. They should have a visually pleasing web page that is easy to navigate. They should also have a good reputation in the community.
I have actually interviewed at two different brokerages so far and both were very reputable and offered great things for their agents. A big selling point for me was the type of support and education they offer to new agents. I wanted to know if they offer a post-license course or if I would have to take it online. I also asked if they offer a mentor program which both did. The biggest difference in the companies was commission split and diversity of agents. One offered a much larger commission split but had a much larger ratio of new inexperienced agent to experienced agent ratio. There were about 4 agents out of 5 with less that a year of experience. I felt I would prefer the office with more experienced agents and a lower commission split as a new agent as I can always earn more with a more secure base of experience behind me.
+++++++++++++++++++++++++++++++++++++++++++++++
Thomas –
The world of Real Estate has changed so much over the last few years. It used to be a lot of word of mouth, newspapers, and flyers. So many things changed when the world of the internet happened, let alone when social media took off. There are so many ways to reach your potential clients and even less expensive than running news paper ads. When I talk about it being cheaper than it is more of the idea that you are getting more for the money you are spending.
A lot of future agents may think that pay may be the most important thing. Yes, it is important to think about when researching future potential agencies that you want to work for. Not only pay, but benefits, agency success rate, also what could possibly work with your style of selling properties. I will be working with my father-in-law for his real estate firm when I complete my degree in just a couple of weeks. With his firm it was e ...
Ask yourself these questions . . .
1. Are your bank covenants trending up or
down?
2. Are you paying more cash out weekly than you receive?
3. Does your family really agree with your
business plans?
4. Why are you taking this test?
These and the following questions are a self
diagnosis test of your business health. Take the test in the privacy of your own office and see how you rate on these critical risk factors.
In summary, the Bay area has great opportunities for people from all over the world, but it is still ruled by its own quirks, un-written laws and complex human relations. Ignoring this is not only naïve, but potentially detrimental to conducting business here.
EmploymentScape Chief Executive Officer, A. Harrison Barnes believes that communicating our value is something we all must do to get jobs and also to keep our jobs. One of the biggest mistakes people make when interviewing for jobs (or in their current jobs) is failing to communicate their value frequently and in detail. It's extremely important that you communicate with your company and supervisors at all times.
1. Shaping attitude and stance…
With many years behind me there is a tendency to dwell on events that may or may
not have shaped the way in which I have approached Credit Management or more
specifically, what I like to call the enlarged role of Credit. What I refer to I guess are
those pivotal moments that many of us encounter that set the furrow and should
undoubtedly result in enormous satisfaction and joy.
One such moment for me came in 1992. I had just joined a vibrant Distribution
business and was tasked with managing the risk while on the outer rims of a fairly
heavy recessionary period that had started in 1990/1991.
I was asked to consider a 50K line to a small system builder business based in
Berkshire who had operated under a strained 10K credit line and was obliged to
continuously pay in order to receive further supply.
The business was a partnership operating from what appeared to be premises above a
motor cycle dealership. It had indeed incorporated the initials of the store below but
had no direct association with it.
I vividly recall climbing an external staircase to the first floor to find four people
inside a fairly confined space, one being the principal owner while the other three
managed product build. It was so cramped in fact I had to sit up close with nothing to
lean on, occasionally shifting position to allow the system builder room to work in or
collect product from the warehouse (a far corner of the room).
Not the best environment to conduct a client interview and more difficult given the
owners reluctance to share any financial trading figures with me. I had of course
already done some research on him and his business but was greatly taken by his
attitude and candour and his determined approach to business. At one point, having
said he checked on the quality and rating of all suppliers, he pulled open the bottom
drawer of his desk and brought out detailed business reports on our company and
many of our competitors. He also accurately in my view, summed up our position and
standing but urged me at the same time to judge him correctly.
I spent some two hours talking to him on a number of issues, his plans, aspirations,
family, what got him involved in the first place and what was it that excited him about
his business and how he saw us as players in his evolvement and growth. I admit, he
impressed me greatly and that “gut feeling” that all Credit people get came to play
and I elected to support the request for an increased line to 50K. I also took the view
that as partnership with his wife, personal liability showed his commitment and that
we in turn had to offer something in return.
That first meeting was the beginning of a great trading and business relationship and
indeed friendship that lasted for almost nine years.
Within a year, his credit line had increased to 100K and he relented enough to supply
me with regular management information and trading data. His payment behaviour
remained excellent and there were plans of a move to bigger premises close by;
2. something incidentally he chose to share with me unprompted, asking if this move
would cause me any issues or concern.
He added excitedly, “Eddie, at the same time, I’m going to become a Plc, will this
make a difference to my credit line or the way you look at us”? I could sense his pride
and puffed out chest while he said this and secretly shared his obvious joy. I replied
that given the required issued share capital and his commitment to sharing of
information, it was very much business as usual.
Conveniently, his new premises were close by and as by chance my car was serviced
twice a year just down the road from his offices, I made a point of popping in to see
him at least twice a year.
As his business grew, it became apparent he did have one weakness and that was an
inability to “let go” or allow others to manage his growing business activity. He also
spent a little too much time looking at what one or two major competitors were doing
and all this invariably meant his focus was not always fully aligned. I recall telling
him this on several occasions. He, of course, nodded his head saying, “you’re right
and I will deal with this, I promise”.
In those early years, he was eager to seek my views on his business and his
management style and was generally receptive to advice given, either critical or
constructive. One instance I recall was when I told him one of his major competitors
in the North of England had opened a trade desk and this had proved successful, had
he considered this I enquired? His reply was along the lines of “Oh no Eddie, I really
don’t fancy having all sorts of people walking in off the street asking me to look at
other people’s equipment or problems”. Some six months later on my next visit, I
noticed his reception area had been revamped with a 15 foot trade desk, three
employees and some marketing literature. It was obvious also that it was busy. As I
climbed the stairs behind him I commented on his apparent change of heart. “It’s
great” he said, “I’m helping them out and they are buying my product and support
instead”
On another occasion, I had a bit of a dig that given his revenue had grown to above
12m, he should think of appointing a good quality finance director to help him
manage that side of the business. He had continued to rely on general accounts
people, external accountants and his own control. He rang me quite excited shortly
after saying he had finally recruited a finance director with experience. He was a bit
confused by my lack of enthusiasm once he detailed who he was. I explained my
concern was his background of one familiar with forecasts and budgets of businesses
with turnover of over 220m. “You’re a Reseller” I said, “A radically smaller business
and one that has to keep things tightly controlled. You may struggle to keep his
interest or control his aspirations”
He lasted less than three months. “You were right Eddie” he said, “He was not on the
same planet as us and was not suitable and I’m looking for another”.
The credit line we applied bounced up and down between £200,000 to 700,000 and
trade remained brisk and profitable. Indeed in the period 1992-1996, gross margin
was in the region of 11%, a quite reasonable percentage for supply of component
products.
In June 1997, I was working late in the office when I received a call. It was the owner
and he was concerned. He was due to visit his bank manager with his most recent year
end results that would show a small and first ever operating loss of around 50k on
sales of around 15.5m and while we had discussed this well before and considered
3. actions required, he wanted me to run through his proposed Directors statement to
accompany the financial results.
I asked him to fax this across immediately and he did. It stretched to almost three and
a half pages and was incredibly detailed in outlining specific events that contributed
to the loss. I picked up the phone and called him back. “Are you sure you want to say
all this? I said, “There is really no need to be so detailed and precise and you may
give completely the wrong impression”.
We re-worked the statement to just one page and he appeared happy with it (I
certainly felt better). His meeting with his bank manager went well and there were no
repercussions.
The business turned in a profit the following year on slightly lower sales and similar
profit in 1999 on increased sales of almost 19m. The failure of one major competitor
had contributed to this surge but at a cost. Gross margin declined and direct costs had
risen higher than they should. Stiffer competition and the need to compromise on
price began to impact and I was obliged to control exposure tighter toward the end of
1998 and throughout 1999 and visits became more frequent in the latter part of that
year.
In fairness he responded extremely well and worked very closely with us in efforts to
correct growing cash flow pressures. We in the meanwhile continued to offer support
where we could although we had noticed our own margin return on trade with them
had declined to around 8% since 1996.
Their tangible net worth had never really been high, a common feature for this type of
business in the IT sector but had steadily declined from 120k in 1996 to around 39k in
1999. More ominously however, cash had become much tighter toward Q4 1999 and
continued into Q1 2000.
We had with client’s agreement reduced overall exposures to a level of around 120k
by March 2000 and the pressure at this point had become intense. He had been
obliged to lay off people at the beginning of the year to cut cost but this had little
impact. The effect of a recessionary period between 1998 and 2000 later labelled
“dot.com bubble” had perhaps proved too big an obstacle and the nature of his
business model was now being fast overtaken by others. He and I both knew the
writing was on the wall.
Our final meeting in June 2000 was a sad one. Our debt had reduced to 80K and I met
him late in the evening with his financial advisors in his offices after he had been
obliged to lay off all staff. He looked visibly thinner than the last time we met and
also appeared physically drained.
His opening retort was “Eddie, I’m really sorry we lost you money but thanks for all
the support you’ve given us over the years”. I immediately replied “No need to
apologize for anything, we’ve done great business for many years and you worked
with us to reduce exposure over the last year. Our relationship has been extremely
fruitful and profitable”.
I went on to add that he should not take personal blame for business failure and the
only failing perhaps was a reluctance to see his business model and activity was being
outpaced by change. This change had however been singularly rapid and the lack of
quality management around him did not help either.
He ended the meeting by asking me if I would support him with a credit line should
he set up again immediately. My unequivocal response was “Most certainly, but only
if you are not the same business you were”.
He smiled and I knew he would not set up again. This had been a pivotal time for him
and he felt incredibly sad to lay off people that to him were almost a family.
4. Some two years later and totally out of the blue, I received an email – it was him,
asking me if I would be so kind as to provide a personal reference as he had been
short-listed for a role of Managing Director. I assured him I would.
For some 11 years in total, our sector was enriched by his inclusion. Another very
positive factor for me was the 290K of gross profit generated in the 6 months
preceding failure while we nudged the credit line downward together. Given trade
well in excess of 13m over the years with excellent payment and DSO in the low
thirties, (for those purists) along with great overall gross profit return, the final loss of
80K was insignificant. This was most definitely not a loss but a massive win.
This narrative could of course be much longer but highlights some elements of what
to me encapsulate the changing nature and face of Credit or how perhaps it should be
applied. I held the relationship with this client from day one and was fortunate to
work with a salesman who equally was exceptional and understanding. Not enough of
us get close enough to customers and sales to make difference, manage risk or indeed
support and grow business and such relationships can be absolutely crucial. Getting
right up close affords a wonderful opportunity to impact on your client’s direction and
progress and creates a foundation that amply supports future correction or disaster
recovery.
Wherever possible, I have emulated this approach and found it incredibly rewarding.
It’s great to have a client in difficulty talk to you first before banks and also seek your
advice on a range of channel and business issues. I have led informal moratoria
ensuring business survival and onward sale, business re-financing and have even been
directly involved in putting buyers and sellers together. None of these roles are seen
on Job specifications or CV’s for people in Credit management but perhaps it’s time
they were.