gri 409 business planning - springfield, mo
TRANSCRIPT
Business Planning
2011 & Beyond!
Corky Hyatt, CRB, CRS, GRI & John Mayfield, ABR, CRB, ePro
Missouri Association of REALTORS®
May I introduce to you
Dr. Fred Grosse!
Have a “10” Today!Document your “Mooring
Lines”Practice your “Morning
Ritual!”Enjoy your “Rewards!”
Dr. Fred Grosse’s 6 Rules
• Recognize that life is primary; business funds life.
• Uncover your passions and give yourself permission to celebrate them.
• When working, only engage in top dollar-productive activities.
• Delegate effectively, so you can work less and earn more.
• Focus on what you can offer your clients, not what you can get from them.
• Remember to give back to the community you live in.
Terry Watson’s
Top 7 Rookie Mistakes!
1. No Business Plan!
2. Not using resources available to you!
3. Not maximizing your productivity!
4. Not earning REALTOR® designations!
5. Not purchasing equipment as a business entity!
6. Not crafting your message to prospects’ concerns!
7. No income buffer, passive income, or
Poverty Mentality
a way of thinking
…perpetuates poverty …
focus is on what one doesn’t have
rather than what one does have.
A common characteristic is
making fear based decisions.
Where Am I Now?
• Units closed this year?
Annual increase in the past 3 years?
• Average Commission?
• My average listing inventory
Seller inventory
Listings sold/year?
Percentage of listings taken/listings sold?
Sources of Business?
• Whom do I prospect for seller listings?• Whom do I prospect for buyer clients?• How many contacts do I make a day?• Am I still mailing instead of contacting? (throwing
$ at the business?)• How many property or buyer listings do I take
each month?• How many contacts (How many presentations)
does it take to sign a seller or buyer listing contract?
• What’s my GCI?• What’s my annual expense %?• What’s my profit %?
Work On It & In It!
•Initially, no
less than 10%
on it & 90% in
it!
•Increase “on”
for increased
results!
What’s My Bottom Line?
• GCI? (Gross Commission Income)
• Expense % (gross profit before taxes)
• Profit? (gross profit before taxes)
•Am I pleased with my numbers?
4 Key Questions!
MichaelMaher
7L
“So that I may better serve you,
please let me ask you a question.Of the following 4 options, which would your BEST FRIEND or your SPOUSE use to BEST describe YOU?•Straight-to-the-point!•Social and Outgoing•Stead and Dependable, or•Cautious & Perfectly Accurate?
High D’s (Dominance)
Results, control oriented
Direct
Impatient, strong-willed
Quick
Takes Action
Hi I’s (Influence)
People-oriented
Optimistic
Recognition-seeking
Expressive & outgoing
Enthusiastic, energizing
Hi S’s (Steadiness)
Stable, predictable
Deliberate
Consistent
Good listener
Sympathetic
Hi C’s (Conscientious)
Analytical
Accurate and orderly
Deliberate
Correct & quality oriented
Systematic, Planners
For the Dominant person, you will want to include
executive summaries, bullet pointed key details, easy-to-find information that can be quickly reviewed; “executive” styling; bold.
For the Social/Influencer person include
color, interactivity, people-oriented materials; stylishly presented; recognition. Color flyers, web sites with flair.
For the Conscientious person include
accurate details, full explanations; honest and straightforward; correct information; quality. Charts and graphs.
For the Steady person include information focused
on security, dependability; remember their natural fear of change.
• Fears being taken advantage of…
Dominant
• Fears rejection
Influencer
• Fears loss of security
Steady
• Fears criticism
Conscientious
Weaknesses?
• Needs boundaries
• Bogged down in details
• Give in rather than argue
• Resists change• Adjust slowly• Sensitive to
criticism• Can hold a
grudge
• No attention to details• More concerned with
image than results
• Runs over others• Argumentative• Attempts too much
D I
CS
Generation Impacts Attitudes Communicat’n
Style
Technology
Preferences
Silent
Generation
Depression
WWII
Duty, Honor,
Hard Work,
Respect for
rules
Formal
communication
styles
Telephone; Some
use computers-
more comfortable
with written
letters
Baby
Boomers
Era
of Safety,
Prosperity
Rebelled aga.
“hollow”
society
Personal
growth,
achievement,
political
correctness
Learned
computers
prefer
conversation,
esp. telephone
Gen X
Social value
upheavals
Tough,
pragmatic,
individualistic
Adaptive,
balanced, comf.
with casual
communication
Emailers,
Net = source
of information
Gen Y
Global
political
unrest; tech
since birth!
Grew up in
diverse &
multicultural
society; „02
Census = 37.6%
Tech since
birth! Family &
group centered;
Talk cell not in
person!
Cell Phone-
centric! Texting,
IM, cell
applications &
net thru cell
phone
• Mission
• Vision
• Values & Beliefs
• Goals
• Strategies
• Action steps
• Evaluation
• Refinement & Redirection
It’s Not Magic!
Mission Statement
Ralph Roberts Mission:•Customer Focus•Personal Growth•Leadership•Team Concept•Profitability
Strategies?• “Strategic”
planning requires that once your mission, vision, values, and goals have been defined,
• You take the next step, creating strategies to accomplish your goals!
Work “Billable” Hours
Billable hours = hours that produce income!
• Prospecting,
• Presenting,
• Negotiating,
• Closing & Follow-thru!
Alan Domb
• Allan is from your neighborhood. Working with an agent who knows your community can be vital to the success of your transaction. After years of personal and business interaction in the area, Allan has gained an in-depth understanding of the many factors affecting real estate transactions in Philadelphia.
• Over 25 years of experience
• Experienced and skilled negotiator
• In-depth and active community member
• Top producer
• Detail oriented, trustworthy and committed to excellence
• Extensive marketing and advertising background
• Good rapport with lenders, appraisers and all other people involved with buying and selling real estate
• Comprehensive knowledge of neighborhood marketing conditions
• Totally committed to the luxury condo market
• Allan has a a positive attitude, is a good listener and will go the extra mile to make your transaction as smooth and efficient as possible.
ALLAN DOMB REAL STATE Philadelphia, PA
Since 1980, Allan Domb and his highly reputable real estate brokerage firm have been known throughout the United States as key contributors to Center City Philadelphia’s luxury condominium market.
Today, Mr. Domb continues to control 75% of Center City luxury condominium sales in buildings such as Academy House, The Barclay, Center City One, The Dorchester, Hopkinson House, Independence Place, Pier 3, Pier 5, The Philadelphian, Society Hill Towers and Wanamaker House.
Nationally, Mr. Domb has been ranked the top producing residential real estate broker for the greater part of the past twenty years.
Protect PRIME Time!
Prime time = “belly to belly” buyers & sellers– Prospecting, presenting,
negotiating and closing plus following through!
• NO Administrative tasks during PRIME TIME!Administer in non-consumer hours (early or late)
Eliminate $ Wasters!
• Track “ROI” for all promotion expenses
• Plan expenses a year at a time
• Use a business budget
• Hold yourself accountable to the plan and the budget– No more “just one commission”
excuses!
• If you need help, establish a “Board of Directors” with people you respect!
Practice Positive “Dumping”
• Spam?
(Panda, McAfee, Norton)
• Spy-ware?
• Use Message Rules
in Outlook Express or Outlook– Auto emails into folders or
– Delete them before you see them!
– Capture leads with message rule flyers to emails from
REALTOR.com leads, your firm’s website leads, or your own web
leads
Do It Now!• Do it now!
• Do it now!
• Do it now!
• Do it now!
• Do it now!
• Do it now!
• Do it now!
• Do it now!
Build My Referral Business!
1 • Sit with REALTORS from other areas in GRI, CRS, ABR Courses!
2• Use referral-service business
card when attending “referral-rich” events!
3•What else can you do?
Benefits of Social Networking
• Easy to get started!
• Not a techie? You can still network!
• Immediate gratification!
• “One-Click” referral sending/receiving!
• Blogging, social networking can create credibility!
• Excellent access to Gen X and Gen Y
• Makes information readily available to consumers
• It’s FREE!
Who is “New” ConsumerNet
Buyer
Traditional
Buyer
Time before contacting agent 9.3 weeks 4 weeks
# Homes Previewed with agent 13.6 25
Importance of Agents response time in
selection process?
70% said
Extremely Important
40% said
Extremely
Important
Typical Response Time Expected Versus
Actual Time?
36%
Instantly
16%
Instantly
Price versus Location as first concern 38% said Price 1st
23% said Location 1st
concern
Location is first
concern
Who is Internet Buyer Today?
• 84% of all buyers are internet consumers
• Expect “instant” response
–56% expect a response within 30 minutes
–Typical response by real estate agents was 10 hours, 16 minutes
• Do a lot for themselves – researching 1st on their own
How May Hats
Can You Wear?
• Listing Agent?
• Buyer’s Agent?
• Ad Man?
• Sales Mgr?
• CIO (Chief Info Officer)?
• Accountant?
• Webmaster?
Assistance For
“Me, Inc.”
• Live assistance
• Virtual assistance
• Choosing the best “Office Manager”
– Create the job description, i.e. which “checklists” will you delegate first, later?
– DISC (Assess the personalities first)
• We hire for personality and
• Fire for failure to perform!
Structural Decisions
• Legal Structure – Sole proprietorship,
partnership
– Corporation (S, C, or LLC)
• Budgeting
• Organizational structure – Agent alone
– Add technology tools
– Clerical support
– Buyer and Seller agents
– CEO & into Exit Strategies
Set Deadlines!
• Write plan deadline:• Budget deadline:• Tech-equipment review deadline:• COI clean-out deadline:• Computer back-up deadline:• Legal structure review deadline:• Schedule a physical deadline:• Schedule time off deadline:• Insurance review deadline:• Living Trust deadline:
CRS members comprise just 4 percent of all REALTORS®. CRS Designees earn an average of $155,876 annually — three times as much as the typical REALTOR® who sells residential real estate.
EFFECTIVENESS & EFFICIENTY
CHECLIST:
How to Shut Down My Time, Effort, & Money
Leaks!