My early business successes were the result of unprecedentedly flawed financial times.  There was very little actual business planning, consideration for operational flow and the such.  We were running with the times more than we were running an actual business. 

The funnel was so big at the top, we just keep shoveling in clients and revenue poured out of the bottom.  No one stopped to consider WHY it all worked, it just did.   This was the refi and housing boom; rhyme and reason not required.  And in the profound words of one Shawn Carter, “I was a business, man more than a ‘businessman’.”   

So, after one particularly arduous day that involved a wooden flamingo I decided to try to become a ‘businessman’ and delved into the world of P&L’s, cash-flow statements, operational methodologies, marketing ROI’s, etc.  and was sickened to discover what I did:

My business was sucking sh*t through a straw. 

It was making money, but it could have been making it far more effectively than it was; the writing was on the wall, the huge consuming funnel at the top could not be sustained.  

We needed to change some things, and it was in the ‘Why’ that turned out to be far more important than the ‘How’.  Believe that.  The ‘Why’ caused me to reconsider our entire business model…and so we commenced on performing some ‘Business Diagnostics’ – an Audit of everything we did…most importantly ‘Why’ we did them and for who. 

How did we do it?  That was simple: eliminate unnecessary labor, reduce our office footprint and other overhead costs, shift expenses to higher yielding products and services, changed compensation schedules and revenue models, and implement systems and processes that mitigated the risks of error and omissions (ever wonder why there is insurance for such?) In other words, we leaned out where it was prudent to do so and committed more resources to better places.    

Why did we do it?  Ultimately for the consumer.  If not for the consumer, we were nothing…they pay the bills.  So, I took us on the journey of reinventing ourselves with a specific consumer in mind rather than what other misaligned institutions had taught us as the way to do business-to be everything to everybody.  Everybody equals nobody, so we niched ourselves to “the tech savvy, educated, thirsty for transparency” consumer and rebuilt the business around them. We redefined our strategy, adjusted our core capabilities to accommodate the strategy and bent our operations around both.  Marketing became an almost unspoken by-product of our new brands promise:  Transparent, smart and efficient. 

This was the origin of the Business Audit, something every business should endeavor upon every few years.  It's an immersive, difficult, unsettling yet revealing and cathartic voyage into ‘Why’ you are in business.  Upon completion, you, your business and your consumers will not be the same. 

Our results?  Cut staff from 35 to 5, did less business and increased everyone’s bottom line.  We began teaching instead of selling. Referrals became our primary source of leads, which converted to clients at unprecedentedly high rates and shut down all outbound marketing.  Our consumer was immensely satisfied because they received an experience consistent with what was promised.  We established value first and price became secondary.  Everyone’s objectives aligned nicely.  Life was good. 

This change was possible because we thoughtfully answered ‘Why’ we were in business and most importantly for who. Now I'm not saying that an Audit will mandate cutting 80% of staff or anything else that we personally decided to execute on...Audits are highly personal voyages that yield very unique results.  

There are a million pretty promises out there wrapped up as THE tool, service or killer app to take your business to the next level – CRM’s, Blogs/Social Media, IDX. None of them know anything about your true strengths and weaknesses.  None of them know who your consumer is or ought to be.  “Just Do It,” Nike’s famous motivational slogan, is a frivolous strategy to run with in today’s business landscape.  Don’t Just Do It, Do It with some, no, A LOT of thought. 

This whole real estate and mortgage paradigm shift is not over folks; it’s a movement that’s just getting started.  Time to get under the hood and discover ‘Why’ you are what you do…because once you know, really understand the ‘Why’…the ‘How’ is far easier. 

Put that shiny new thing down and cleanse your businesses soul…your world will be a better place because of it.