business planning for the successful...

Business Planning for the

Successful REALTOR®

Real Estate Business Plan

Today’s Objectives • What is a business plan?

• Why business plan?

• 4-Part Business Plan

• Taking Actionable Steps to Creating

Your “Simple” Personal Business Plan

What is a Business Plan?

A BUSINESS PLAN is NOT:

• a complex math problem (numbers do not inspire);

• a science project;

• number-driven;

What is a Business Plan?

A good BUSINESS PLAN:

• Less is more (K.I.S.S.)

• Provides for specific and actionable commitments

that are measured on a consistent basis

• Facilitates change so as to not repeat history

“Insanity is doing the same thing over and over

again and expecting different results!”

Why a Business Plan?

IN GENERAL

• Grow your business

• Quality personal life

IN SPECIFIC

• Self-discovery

• Build on strengths

• Identify weaknesses and ways to improve

• Systemize

• Work smarter, not harder

Four-Part Business Plan

4 PARTS OF A SOUND BUSINESS PLAN

1. Reflection

• (What exists today?)

2. Wants & Needs

• (What do you want to exist tomorrow?)

3. Action Steps

• (What do you intend to do to get there?)

4. Accountability

• (How do you intend to get there?)


1. REFLECTION (What exists today?)

• You need to figure it out on your own (self-discovery);

• You need to assess your business as of today:

• You need to identify your personal strengths or advantages you bring to the table;

• You need to identify your personal weaknesses and aspects of your personality & circumstances;

• You need to evaluate your business – processes, procedures, systems, marketing, etc.


REFLECTION

1. How many people do you have in your sphere of

influence?

2. What database management system are you

presently using?

3. How often are you communicating with each person

in your database?

4. What activities are you consistently doing to

increase the names in your database?


REFLECTION

5. Do you have a farm?

• Do not strictly pick a farm where you live;

• Choose a farm with a high turnover

• Choose a farm that is not dominated by one

particular agent/office


REFLECTION

6. How many people are in your current farm?

(touches are more important than # in farm)

7. How many closings took place in your farm last

year?

8. What are you sending to your farm?

• You want to demonstrate skills and expertise (up to

the market information)


REFLECTION

9. What were the source of each of your closings? (i.e. open houses, website lead generation, past clients, spheres, etc.)

10.What was your buyer to seller ratio last year?

11.Did you accomplish your goals last year?

12.What got in your way of you accomplishing your goals?

13.What are the three most important things you accomplished last year?


2. WANTS & NEEDS

(What do you want to exist tomorrow?)

•What areas of your business do you feel you need the most improvement?

•What kind of specialized training would you like from management?

•What are you not doing in your business that you feel you should be doing?

•How often would you like to meet and review your progress?


WANTS & NEEDS – Sales Projections

• Mark to commit to – not shoot for;

• No. of Units Closed (your #) ‘bold but attainable’

• Average Sale Price (historically, market, target market, buyers vs. sellers)

• Average commission per end

• GROSS COMMISSION EARNED

• Number of listings required (DOM, Sold/Expired)

• Marketing budget (avoid reactionary)


3. ACTION STEPS

(What do you intend to do to get there?)

• 90-day plan of action (activity vs results)

• 12-month plan of action

1.Sources of business

2.Commit to action steps

3.New strategies to implement

(database marketing, email marketing, farming, etc.)


4. ACCOUNTABILITY (How do you intend to get

there?)

• Follow-up

• Coaching

• Stress vs. Tension

Creating Your Business Plan

“The key to developing a

successful business plan is to

put it in writing and follow the

plan.”


“There will never be the perfect

plan or perfect time.”

“Make your plan based on

YOUR best judgment.”


“Stick to the plan –

don’t tinker looking for quick

fixes.”


“Set aside

three to six hours per week

to start working on your

business.”


“If you fail to plan, then you

should plan to fail.

The best thing you can do is

START –

Ready-or-not, just do it!”

Conclusion

Task/Be Accountable...

•Ultimate Goal

CREATE A 90/DAY & 12/MONTH WRITTEN

BUSINESS PLAN

Conclusion

Task/Be Accountable...

•Next Action Step/Commitment

Create a database or spreadsheet of contacts you would maintain in a Contact Management

System (include names, addresses, phone numbers, email addresses);

Questions?

business planning for the successful...

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