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Building a Viable Business Plan Part I of IV

By
Industry Observer with Retired

Building a REALTOR Business Plan is easy once you understand the dynamics involved. I have developed those dynamics in a simple narrative format that will be easy to follow. I have set this up in four parts and would recommend that you bookmark them or print them out for your continued plan development. This is not hard so don't put it off.

This is Your business plan, don't leave home without it ! 

To survive in our challenging markets, a business plan is essential.  To build one, you need to be very clear about three things

•·                   where you have been  (Section 1)

•·                   Where you are currently  (Section 2)

•·                   where you want to go  (Section 3)

Skipping around a bit, let's start with the last point first. ( Section 3 ).

The first step for this phase of your plan is to develop a positioning statement detailing your business objectives. Define your Core Competencies. Your Core competencies  are those things you do best and love doing.  Michael Russer, ( I am a graduate of his e-productivity course) calls this practice of defining your Core Competencies as defining your perfect career.

Next we will examine your Business Objectives: specifically detailed attributes of your business goals as though you already have reached them.

How much of your total business will be from listings ( Listings Sold) and  Buyers?

(Section 1 )

Then going backwards a bit, go back into your past 3 years of business and evaluate them. Set that up as  valuations for the last three years production. ( Not including this year) Being May of 2007, it will be easy to track this years business. We will do that later on.

Now define where each sale or listing came from.  Signs, marketing, being the neighborhood specialist, from out of area client referrals, etc.

Detail the volume and number of transactions for each of the last three years.

Define what really stands out in those last three years - even who the people were. ( Having an accurate and up to date contact list of past clients is essential for your marketing purposes and if you haven't already done that-do it now.)

What were your shortcomings these last 3 years? Were you satisfied at each of these past three levels, (years), if not why and suggest what you could have done differently. Marketing without being speciific is not a satisfactory answer.

Then answer this question: have you already implemented these changes, why or why not?

(Section 2)

What were the sales figures ( Jan through April 2007)  you achieved this year?  It 's early May 2007 so this will be the easiest part of the exercise. Where are you focusing now  and how did you get this business closed or in the pipeline?  Marketing, farm, sphere of influence, referrals or as a neighborhood specialist.  Detail it out and be specific.

What did you accomplish year to date?

How much potential business do you have in the pipeline- (be real honest here and don't count what you know you shouldn't)

 

If you had to project all of 2007.  What percent of your years projections have you met year-to-date with seven months left, what will you have to do to reach your projections.

Don't beat yourself up, there is no correct answer for that part.  Let the truth be realized even if uncomfortable.

Now write out your short-term and your long-term goals for the next one to three years.  This will be a Vision Statement, of how you see your business growing.

 

 

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Comments(6)

Jason Sardi
Auto & Home & Life Insurance throughout North Carolina - Charlotte, NC
Your Agent for Life
We do the same thing over at my firm on the origination side, it's always interesting to note once the year is half over how one's business plan measures against actual results.  If the business isn't growing, you may want to re-visit the plan...or the lack of implemenation of it. 
May 28, 2007 10:19 AM
William Johnson
Retired - La Jolla, CA
Retired

Hi Jason,

When I did this, I felt I would be helping a lot of folks in the business to understand the dynamics of how to structure a business plan. I guess it must have been way to much work. There are simplified forms available but I was more interested in teaching the components and helping one understand it. It went over like a lead ballon. You are the first and only one that likley even read it, judging by the statistics. I asked one of my fellow bloggers if she would look at it and critque it. She asked that I post it on her Blog Group site. Not even one comment from her or the group. As I mentioned to you in one of comments on your posts that within a short period of time, I would be on my own custom site soon and most of what I will be doing are things for consumers, not our profession. I sort of thought of this 4 part post as a parting gift, if you will. The blog experts tell me it has to be interesting ( bulding a business plan is about as interesting as watching mudd dry) , a bit of humor to get their attention ( the only possible humor would be the  last 3 years years production would be funny -if it weren't so sad) and the post should be short and an easy read ( my post is too long-too complicated and short on the details). It looks like I failed miserably on that one! Thanks for at least reading and reviewing it for me,lol.

Sincerely,
William

May 28, 2007 11:17 AM
Preston Riley
Weichert Realtors, Dean-Kelby - Charleston, SC
I thought it was ok, did you not finish the rest of the 4 part series?
Jun 12, 2007 06:52 AM
William Johnson
Retired - La Jolla, CA
Retired

Most Haven't. This post was a bust. It was my first attempt and I learned that it is too long , too hard to comprehend and just TOO.   But thanks for trying it out though, I appreciate and have learned that I will leave the teaching to others that don't have blog sites,lol. I will say in my defense, I wanted to give everyone a lasting benefit of having this in case they need to have a business plan and just didn't know how to start or create onw.

See my new site. William

Jun 12, 2007 07:39 AM
Rosemary Brooks
BMC Real Estate - 209-910-3706 - Stockton, CA
The Mother & Daughter Realty Team

William, here I am chasing you down to say Happy New Year before the day is up!  I am going to finish up my business plan and I see you now have a series of tips that I can leverage off.  I might even take the challenge to be finished by Friday..... um?

Ms Brooks

Jan 01, 2008 02:41 PM
William Johnson
Retired - La Jolla, CA
Retired
Hey Our Miss Brooks, Happy New Year to you as well. I so appreciate what you bring to this group and you have a way of making each and everyone you touch feel very special, as I certainly go. Happy New Year Rosemary and my your new year will be filled with Love, Good Heath,Happiness and a Wonderful New Prosperity.
Jan 01, 2008 04:13 PM