"As a business, the most important aspect, other than prospecting for clients, is to create a budget"

It's the beginning of a new year and if you haven't already started planning for next year, now is the time to do it.  So many agents approach this business as more of a hobby.  That's great and fairly stress free of you're not the bread winner in the family and the income is merely supplementing what's already adequate. 

But for most agents, this is what pays the bills.  And if you are in this boat, you better start treating it as a business because that can be the difference between success and failure. 

So "As a business, the most important aspect, other than prospecting for clients, is to create a budget".  But where do you start?  Start with last years information.  You should be documenting every penny you spend because if you dont' know how much you're spending, you don't know how much you need to make.  And I mean really break it down.  I like to use Quickbooks as it allows me to be as general or broad as I'd prefer with categories, sub-categories, etc.  I've heard so many agents take the approach that they spend it when they have it.  Well, I think I would have a heart attack by summer if I took that approach!  Know your numbers.  It allows you to prepare and also allows you to grow as you will want to improve on last years profits. 

Secondly, know how much you need to survive.  This pertains to your personal expenses.  We all know that we have good months and bad months.  You can make things a lot easier on yourself if you figure out what you need to make each month to survive and make that your bench mark.  I've learned to live a reasonably frugal lifestyle, much to the chagrin of my wife. :)  But we are able to pay our bills and I'm able to do my job without worrying about making the sale to pay a debt.  If there's leftover at the end of the year, that's super!  You just provided yourself with a great Christmas and maybe little spending money after the fact. 

Lastly,  stick to the budget you've made for yourself.  It's not useful if you don't use it.  You need to review your budget versus your actual spending on a monthly basis.  I've seen dozens of Realtors with good intentions who start the year off knowing exactly how much they need to make and how much they should spend.  Then guess who rolls up in a new Cadillac because they had one big month?  Create, review, and revise.  That's the key.

So if you're like me, you got into this business because you love working with people and you love buying and selling real estate.  But to be truly successful in this industry, you need to learn how to treat this as a business and run it as such.  So look at last years numbers, make your budget, and most importantly, use it!