The Best Way to Grow Your Title Business
Whatâ€™s the number one step Title Agents can take to grow their operations? Find a system to track goals and progress. This is absolutely vital for the health and growth of a title business. Over Stringâ€™s two decades in the business, weâ€™ve seen hundreds of title agencies that simply donâ€™t have an effective way to measure performance. Most title company owners are excellent salespeople; theyâ€™re excited by the hustle of acquiring new clients and closing the next deal. Getting in the weeds with expenses and margins can feel like a dull distraction. But as the old saying goes, â€œwhat gets measured and reported gets managed.â€ To accelerate your title business, establish strategic objectives with specific metrics and set up a formal system to track and manage progress.
With so much cash circulating through the title industry at all times, many can get the impression that a company is doing just fine. All that cash sitting in the firmâ€™s bank account can mislead owners into thinking theyâ€™re profitable when they really arenâ€™t. Most of that cash does not belong to the business; and if itâ€™s not profitable, none of it does. Trying to address a lack of profitability by hustling for more deals or praying for a boom in refinances is not a sustainable long-term strategy. Moreover, in a handful of cases, the combination of large amounts of cash sloshing through the business — plus the lack of metrics and goals — has led to dire consequences for title agents who have skimmed off the top of the firmâ€™s escrow accounts to float an agency cost, such as payroll, thinking theyâ€™ll pay it back with their next deal. Over the last five to six years, underwriters have implemented technology to improve financial monitoring. Defining objectives and building a system to quantify true operating performance will ensure a business is driving momentum and not taking risks with cash flow.
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