Business Planning - Working for a Reason.11/19/2019
Why do people succeed? Because they INTEND to.
What if you asked yourself to fill in these blanks at the end of each day?: “I’m glad I did ______________ or, I wish I had___________________”. How about at the end of each week? The end of each year? The end of your career?
One of the most common mistakes that small business owners make is spending all of their time working IN their business and not enough time working ON their business. A real estate agent is a small business owner and just like any business, they have several departments: Marketing, Sales, Admin, Accounting, Receivables/Payables, etc.
Now is the perfect time to step back and look at your business and evaluate the performance of each department and make a plan for improvement for 2020. A written business plan is the roadmap to your 2020 goals.
essful agents go through this process at least once a year. They intentionally decide where their business is heading and they intentionally decide how it is going to get there. Once an initial business plan is created, the process is relatively easy each year as it typically requires tweaking an already existing plan. The hardest part for most agents is creating that initial plan.
Jon Cheplak, a top agent coach recently said in a presentation of video for social media, “don’t let your fear of looking bad in video keep you from starting. My crappy video beats your no video every day”
The same could be said for business planning. A one-page no-frills basic business plan beats no business plan every day.
So, just start with these five basics:
- Make a written production goal.
- Divide that goal by your average commission and determine the number of sales you have to have to reach that goal.
- Decide what percentage of your sales will be with sellers and what percentage with buyers.
- Decide where these sellers and buyers will come from.
- Decide what you are willing to do to attract the number of sellers and buyers you must work with to accomplish your sales goal. Don't forget that Quality is by far the best business plan. As you develop yours strategies, ask yourself how you can build on quality.
Here is an example:
- Annual production goal: $100,000.00
Average commission: $3,000. $100,000/3000 = 34 total sales
50% sellers/50% buyers= 17 sellers and 17 buyers
Sources for clients: FSBO’s, Expireds, My network, On-line Leads, Sign Calls, Open Houses, Relocations, Referrals, Farming, etc.
Create a written statement explaining how you will work with your selected lead sources to attract the clients needed for your goal. (“I will attract 5 listings and 4 buyers by contacting my current network at least once per month including a phone call at least every 6 months”).
This is a very bare-boned business plan, but it is a terrific start. Once this plan is in place, you can add to it, improve it and concentrate on different areas of your business each year as you improve.
If you would like to see this process in action, please feel free to attend our in-house business planning sessions beginning this week. We will be concentrating on creating and updating plans for agents in both our Marshall and Battle Creek offices and are happy to share the process with you.