Creating an Effective Business Model is the Cornerstone of Your Practice

I could really make this blog short - but that just wouldn't be me.  The simple solution for Real Estate Business Planning and Modeling can be found in the book The Millionaire Real Estate Agent by Gary Keller.  This is one of those books that EVERY Realtor® should read, reread and put into practice.  I'm not a Real Estate agent, but I've read it myself four times.  One of the most fascinating things I've learned from the book is that it is not just for Realtors®, just about any professional involved in selling can benefit.  It has helped me tremendously!

The Millionaire Real Estate Agent philosophy focuses on four models and some basic principles.  The four models are Economic, Organizational, Lead Generation and Budget.  Likewise, there are three foundational principles: Leads, Listings and Leverage.

I will cover them in brief here and will write future blogs discussing each in detail.

The Millionaire philosophy starts with the principle of Lead Generation.  This principal is basic and something that any successful sales person knows: Until you have enough Leads, you have no other task to focus on.

As a Real Estate professional, Listings is the next key.  This isn't to say that you shouldn't work with buyers. In fact, effectively leveraged Listings should yield at least one bona fide buyer, making the business mix 50% Buyers and 50% Sellers.

The other core principal is Leverage.  Leverage simply says that you utilize a resource to make something more out of it.  (Yeah, I know... read an upcoming blog to get the clearer picture.)  For now, just think - one plus one equals three.

The first pillar of the business model is Economic.  This pillar is kind of fun to work with and is the one that encourages you to dream about the future of your business.  Your Economic Model will become the cornerstone of your business. 

The second pillar of the business model is Lead Generation.  As mentioned above, until you have enough leads to sustain your business, you have no other job but lead generation.  Lead Generation goes deeper though and involves prospecting and marketing, and database management.

The third pillar is the Budget Model.  This part of the Millionaire Real Estate Agent concept focuses on business management and requires that you do what you really should be doing anyway, and that is to see your Real Estate practice as what it is... a business.  I personally like the Budget Model.  When I see that one of my prospective Real Estate partners has the budget model concept down, I know I'm dealing with a professional and that is always very reassuring.

The fourth pillar is the Organizational Model.  This model covers team-building and effective use of your time. 

I hope you will check my blog frequently.  I will be writing several articles covering the important details of Business Modeling.

In the meantime, RUN!, don't walk, to your nearest bookstore and get a copy of The Millionaire Real Estate Agent

Real Estate Mastery covers many facets.  Business Modeling is an absolute must in order for your Real Estate practice to have maximum potential.

Greg Polashock is a Real Estate Home Mortgage Loan Consultant and Certified Mortgage Planning Specialist with Cherry Creek Mortgage and resides in Castle Rock, Colorado.  He can be reached via email at Greg@GregIsFinancingSolutions.com, by phone at 303-887-0672 or on the web at http://www.gregisfinancingsolutions.com/.