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The Real Estate market might not be great but do you have a business plan for 2008?

With all the negative media stories out there it can be very discouraging to the struggling Realtor® or Mortgage broker or any profession you might be involved in. I was only using these two as an example. I for one feel for each and every one of you that might be experiencing this. Just to let you know....you are not alone.

With 2007 coming to an end it might be a good time to start thinking of the future. So going into 2008 I believe we will see our market to continue to decline just a bit more. There is talk of another 20% decline in property values and with very high levels of inventory there still doesn't seem to be an ending to it just yet. But I think we might start to see the market take a swing back upward in the spring but that shouldn't stop you from preparing for better times. Why not start now?

Now I was never the type to sit down at my desk and do a full blown analysis of how my year went and forecast the next. I worried more about waking up in the morning...getting out of bed and hoping my two feet hit the ground at the same time but I do believe that it is important to lay down some sort of foundation and write down a few realistic goals. For example...you might have a goal of making 100K next year but realistically you might only make 75K. But at least you were still meeting a realistic goal. Here is how I might approach it. I would look at how much icome I brought in and how I attained it. Then I would figure out all of my expenses.

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Posted by Neal Bloom-Realtor ® Assoc.-CRS-Weston FL on 11/19/2007 05:16 PM

Comments (110)

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Originally posted at: Weston Florida Real Estate Blog, Neal"The Real Deal"Bloom : The Real Estate market might not be great but do you have a business plan for 2008?

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110 Comments on The Real Estate market might not be great but do you have a business plan for 2008?

NOV

2007

I like that .... with just about everything ... no pain no gain. The days of transactions just falling in your lap are long long gone.

Neal - This should be given to every new agent! You have to have a plan. Simple as that. This is a hard job, but you can be a success if you plan. Awesome post!

Can I borrow a copy of yours...somewhere over the rainbow, I see the market improving...with my positive attitude and all. :-)

I need to make my plan for 2008. Thanks for all the ideas.

I agree everyone needs to have a plan, a market plan in the works and work toward it. Enough of this doom and gloom. Think positive.....it's going to turn sometime and if you'r smart you'll be ahead of the game by working your market plan now.

Patricia Aulson/NH?ME?MA

Simple and to the point. Thanks, Neal...lots of us need to be reminded about planning and your suggestions for reducing marketing costs are dead on.

Neil my friend at your age you should worry about "waking up in the morning...getting out of bed and hoping my two feet hit the ground at the same time" ........ LOL

I have put in a lot of hours this year and so far my business is up about 16% over last year with a little more than a month to go, so I should end up about 20% over last year, but my goal was 30%. You have to have a goal or you do not have anything to shoot for. Mine is usually a % goal, and I measure where I am ever quarter.

I agree with the no pain no gain. You have to work hard and long hours in this business if you are going to succeed, and that means sacrifices. If people in this business are not willing to make the sacrifice then they need to find something else to do.

Neal...

Nothing but nothing happens without a plan. As a woman I can attest to that :)

Love your title...Makes a nice little diddy :)

Where did I leave my poms poms? Rah Rah Sis Boom Bah :)

TLW...ROAR!

WOW Neal...very nice post! I agree...someone at the board of realtors was making fun of me....I am on a few committee's and I asked for the next year's schedule and his remark to me what are planning.... it will make the rest of the year go faster....I just responded by doing this it will make my next year even better!

Desiree,

Every day!

Linda,

I think every agent needs one of these a-s kickers.

Karen,

If it might help you just don't syndicate it:)

Aggie,

Thanks for stopping by!

Patricia,

Although I can feel the stress...I try not to think about it and just have a very short plan..because plans change.

Lisa,

That's me..MR simple:)

George,

I have my ideas of where I want to be and where I am at...and I'm not much of the big planner but I have it up there somewhere that I have goals.

Billie,

P Diddy that is:)

Midori,

Came out to play?:) I'm looking forward to next year...I think it might get better.

Neal,

I won't (syndicate it) I would just like to see a good one. I have a lot of respect for you...if you wouldn't mind emailing it to me?

Really enjoyed your post Neal, thanks for sharing your thoughts and giving us some great ideas for 2008!

wasn't there a little guy that used to point at the sky at Fantasy Island and yell "The plan, the plan!"......ooooops....I guess it was "THE PLANE, THE PLANE".

Neal - this is a touchy subject with real estate agents, because many just live day to day and don't make those plans, don't do projections and don't have goals. It is especially important to do this when the market is down and to find creative ways to market properties without affecting your clients. It may also be a better time to market to buyers. Thanks for the reminder.

Just so I don't forget...

Stolen from Neal :)

Those who don't plan, plan to fail.

We're very slow here. The phone hardly rings, but we're bringing in 2-3 good buyers a day. I'm getting for January.

Well done Neal. I guess I'm getting lazy because my plan next year will be pretty much the same as it is this year. Get up every day, go to work and make things happen. OK, maybe I have a little more detail to it but "just doing it" is certainly a major paet of it.

Neal - you are the real deal!!! I just did a post on AgentAssist about the plan for 2008. Great job, keep up the great work here. Sorry I haven't been by more, I asked Santa for 2 extra hours a day for next year! LOL

Happy Holidays my friend, best to you always!

Hey Neal - there you go!! ;-)

Great list of things to get going on now for the coming year. Plan and you shall succeed, don't plan and who knows...... If you don't know where you're going, how will you know if and when you get there?

I best get going.....

Ann

Hi Neal,
Good reminder to keep us on our toes. We all need a plan and goal and it needs to be on paper so that we can look at it. Same thing with a budget, I think we can focus more clearly when it is in black and white. Works better for me that way.

I definitely have a written business plan. In fact, I'll be working on it over the next few weeks because we will be sharing our plans at my next mastermind meeting. I track all of my expenses every year with Quickbooks so I can see what I've spent and allocate a budget for next year. I also track where my business came from and that helps me decide where my focus should be for the next year. It's essential to success in my opinion! This is a really good post, thanks!

So true & so many people neglect to even have a plan in the good times, nevermind this. There is no way you can live up to your potential without a plan or at least a plan of sorts. I totally agree with you on the free stuff. I'm always looking for different avenues to post myself. The unfortunate thing is that many people will fall into a rut in this type of market. I've been lucky and been utilizing what I have as a lot of other people I'm sure are doing on AR. It's a great place & hopefully gives many the incentive to keep on moving and doing.

Write your plans on a tablet and set it before your eyes daily, and it will come to pass! Words of wisdom to write our goals down. Ancient wisdom brought to the present. Thanks for the post.

I plan to have a gooooood 2008. I liked your post Neal.

Jeanette Hemmer Re/Max Plus Realty, Arkansas

Neal,

Believe me, I really need to shape up some more!!! Good to read it..

Tom Weiss

NOV

2007

Dear Neal,

very encouraging blog and great information for all of us :) thanks for sharing this, sometimes we need it :) Keep the great blog my friend. You always do awesome.

Ray Saenz

Karen,

Email me what you would like...thanks.

Chris and Maria,

If it helps you then that is all that counts. Thanks for coming by!

Ines,

Just like I mentioned that I'm not the best when it comes to organizing those things and yes it is hard not to live day by day..I would say more on the lines of if you have to do it that way that is fine but how about go with the flow instead.

Billie,

:) :)

Missy,

Small plans produce large results,it isn't about a lot of gibberish..it is the meat and potatoes.

Lenn,

I like your outlook...send me some of those January buyers:)

Bryant,

Although I admit to not liking putting together something in writing...I just try to make it real simple along with going with the flow and hoping for the best.

Brad,

Thanks and same to you and I'll be seeing you on cre8abuzz!

Ann,

Finding the direction is more important than just writing down something to satisfy that you did something...more of the key elements inside the plan.

Cynthia,

The word budget is important to watch as you might go crazy and spend it all and before you know it your out of money for the rest of the year.

Kelly,

I used to have that program until I was stupid enough to lose my hard drive and all my important records..I just hand it all to my accountant now ...thats what she gets paid the big bucks for:)

Marc,

I think a good combination of things even the free ones are going to vault you higher...even if there are people who don't agree but when it's free the only thing you have to lose is the extra spam you will most certainly get. Syndication is great if you can get it.

Nicholas,

I just write it on my palm...my hand that is:)

Jeanette,

Thanks for reading it and I'm glad you enjoyed it:)

Tom,

You be the man!:)

Ray,

Thanks for always stopping by my posts...I think you are doing a great job with yours as well and I hope to continue to read yours as well.

Nicholas,

Thanks for the extra message you left!

The 2008 plan.... continue what I'm doing now and take it into the New Year! Happy Thanksgiving...almost. :)

Dang no cheese for the Active Whine :wink wink: Nice one Neal. Hope your business plan has a little Reuters involved! Most sincere congratulations to someone who really works hard and deserves what he has going. Never let anyone try to derail your train!

Sally,

We can only hope all of our plans work out:)

Renee,

I really enjoyed our telephone conversation "oops...should I expose that? Someone might have it on their google alerts" No seriously thanks for that call and are lttle secret:) Tell them all to just bring it! HAHA!

Excellent post - we can't hear too often how important it is to write down goals and to have a business plan. Then, of course, we have to keep it front and center - 'not bury it all in a drawer, or the back of our mind. Thanks for sharing your wisdom on this, Nea!

Margaret,

Thanks for stopping by....It's even hard for me...sometimes I have to force myself. I think discipline is the key

Neal- These are good things to do whether you are a new or experienced agent. katmon

NOV

2007

Kaye,

Actually you are right...I wasn't even thinking about whether or not for new or seasoned. It's a guide for everyone to use.

NOV

2007

Just read your goals blog, and I thank you for the thought and time you took to provide your comments. My situation is as a 'newbie' - - not only to selling RE, but also to my new home, Maggie Valley, NC. I moved here last December from Hawaii so my sphere of influence is a bit challenging in this area. However, I have chosen to attend all Conventions and attend classes during this first year, along with setting up my database, and continuing with my marketing plans. Once these initial goals are accomplished, the pieces will all come together I feel sure. I've managed businesses for years for others; now I want to have my own business, and I am putting everything into this venture. To say I am positive is an understatement.... and with insight from seasoned realtors such as yourself, I can't help but win. Thanks again.

Susie,

Anytime! You do whatever you can that is counter productive to hopefully make your business grow. If I'm slow I'll maybe incorporate something else but my priorities are simple...just do it and try not to worry as much about complex scheduling.

NOV

2007

Neal,

thanks, if you check the time, I woke up earlier, the problem about to check the blogs, it is time, if you check when you wrote your comment and then when I was replying to this comment, then you will understand me. :)

Sometimes we do not answer to comments, because there is not such need to do it, but this time I decided to get back to you.

Ray Saenz

Ray,

Man you are all over my posts tonight..cat got your finger?:)

Neal,

That's because I like to read your blogs and your comments and I do not forget you my friend. :), do not worry to be on my blogs , I know that you are so busy, I am too, that's the reason that sometimes I get a lot of delay to get back to you.

Ray Saenz

NOV

2007

Ray,

I do ...but when you write yours in Latin it is hard for me to read as I do not understand the language very well.

great advice... 2008 is just around the corner.

Thanks Angie!

Neal - read this earlier today - then went to Starbucks - and there - right infront of the window was a fellow with his calendar - 4 highlighters - 37 sticky notes and a yellow pad. "You look serious" "2008 Business plan." We all need to be inspired. Thanks!

Elenor,

They must be thinking the same thing I was.

NOV

2007

Neal,

Read !
:)
Ray Saenz

NOV

2007

Ray,

I do....go look ...did you see my comments?:)

DEC

2007

If you don't write it down then it never happened (and probably wont happen). Very good points.

Jessica,

I have to write it somewhere even if it is on a pack of matches pr a cocktail napkin:)

DEC

2007

You have to have a plan and a realistic one is ideal. It is nice to dream, but you set yourself up for disappointment if you are not realistic. Thanks for the post

Sally,

Pick reachable realistic goals...this way if you meet them or go past them you will accomplish above your original dream.

Neal,

I so agree with you, if they are realistic, you can meet them or accomplish greater goals! This market is, JMO, here in Florida getting better! Stay positive, Karen

Karen,

I hope you were able to view the entire post on my outside blog. I'm adapting...hey we ended the year with a few deals that closed so I can't complain.

JAN

2008

Nice Post lets hope we all can adapt to the changes.

I do have a plan to survive this and wait this down market out! We had 30 agents leave our board this year that couldn't hang on...mostly newbies. (Our board is approximately 300 members) I am listing properties like crazy because things are moving, but slowly...but I want to have the inventory so i at least get a shot that maybe ONE of them will sell each month and luckily TWO of them. I can keep hanging in there if this happens.

I also am pursuing getting an insurance sales license too to suppliment my income in the meantime. I figured people need homes and insurance right? So why not do this as well in addition to my real estate? I'm just trying to figure out which way to go with this if I need to sell Medical, Life, or some other type of insurance for people....is anyone else out there doing both real estate and insurance to give me a heads up on which way to go here?

Thanks!

Andrea Kroll

Kevin,

I started planning in 2007...i made it again so I'm not too worried about 2008 and I already have some things in place.

Andrea,

My wife has been in the insurance industry for about 12 years her and longer where we used to live and she does quite well...as for RE you just need to make a short term plan not too much ahead so this way as you go along you can add. I won't plan too ahead because I won't take disappointment lightly.

I'm thinking that long term at least it would build a residual income for me and help subsidize my income for now as well.

At least thats my plan...

Andrea

JAN

2008

Pot of Gold Real Estate Inc.

Thanks Kerwin!

JAN

2008

Kerwin,

Thanks for stopping by and reading!

Neal,

I have a plan, too! And, I'm ON target! Great feeling, isn't it?

Much success to you!

JAN

2008

Marzena,

Glad to hear it...it might a be rough one this year. Good luck

JAN

2008

Good post. I also set up my business plan before the end of year and broke down goals into easy attainable chunks to keep me on track. Now, if things start to not go exactly as planned I will be on top of it and start focusing in areas that need more attention.

Charity,

Thanks and good for you!

FEB

2008

Neal Good post, let's strap up the boot laces and get in the battle we will succeed. lets make that plan and follow through. If you fall short of the sun remember you will land among the stars:-)

Lester,

My plan is so off but I'm really busy 6 days out of 7 days so I can't complain.

I'm ignoring the market this year. I'm ahead of last year's production. focused on getting a listing every 3 days, making 10 sales a month, taking one day off a month, leaving for work by 8:00 every morning and home by 8:00 at night. Not bad so far. By the end of the year, I should have enough sales to take 2 days off a month!

Kay,

Sounds like a good simple plan.

FEB

2008

thanks neil, i never bought into the "bad real estate market". I have had two wonderful years and just learned to work smarter. I too, have a busines plan and a mentor group that holds me accountable to my plan... I am sharing your blog with some of the agents in my office...who cast the evil eye on me...the one who is selling...

FEB

2008

Annie,

That's exactly it...thats how we did well at the end of the year and have been regularly busy since Christmas.

MAR

2008

Great advice Neal. Let's plan our work and work our plan :) Thanks

MAR

2008

Tom,

Thanks...I just try to keep it simple and not too much because it might have to be changed along the way.

MAR

2008

Every day when I wake up I say to my self I'm not employed I need to find a job so.. I do ...

APR

2008

Mariana,

Then maybe it's time to go get a job:)

APR

2008

I agree with the idea that we need a plan and goals for the year. We can hopefully decide on those and then start with the projects that will get us there.

APR

2008

Carol,

I just make mine very short because it's bond to cahnge as I go along. I'm actually very busy since Christmas so I can't complain.

MAY

2008

This is something I definitely need to do but not really sure of how to. I work with a small realty company that doesn't offer any assistance or guidelines for coming up with a plan. Hopefully with some further research I'll get one together.

You better start soon or it will be 2009:) I would tell you just to concentrate on listings listngs listings! Buyers will come...get listings and don't take them if they aren't correctly priced....wirte to the consumer and you might pick up a few deals too.

JUN

2008

yep I got a plan......it really clarifies your approach to your business on a daily basis.

JUN

2008

Bryan,

You better hurry up because the year is half way over:)

JUN

2008

We always need a business plan.

Plan your work and work you plan!

JUN

2008

I hope your plan works out:) The year is almost out.

JUN

2008

good luck, make sure that your business plan has some flex.....now, in this real estate markets.

JUN

2008

Jack,

Same to you. Of course it does...mine changes through out the year.

JUN

2008

Without goals you steer aimlessly. Goals and a plan keeps you focused on what needs to be done. It's important to share your goals with others so they may keep you accountable.

Goals are goals!

AUG

2008

I agree. I need to make a plan to work out the kinks as well as cut the fat.

AUG

2008

Michael,

I guess we all had to change our plans a bit this year.

SEP

2008

Everyone needs to make a Business Plan and do their best to stick with it.. My BP changes at least twice a year.

Best of luck!

Time for 2009....hooooray. Let's make it great.....I'm waving my Pom Pom.

SEP

2008

Having a business plan is crucial. You must set goals and have a plan to reach those goals every year!!!

How To Become A Power Agent in Real Estate - Darryl Davis is awesome and I recommend this book and his material for all your business planning.

[I have no relation to Darryl - I just have his books and CD's and they work...if you work them!]

OCT

2008

The 2008 plan is almost over and now is time to think of 2009 - plans will and must change but it is best to at least have a plan to change/

NOV

2008

I have started my 2009 plan as of NOV 1st. What I do in the next two months will help me prepare for Jan 1. Thanks for sharing this post. We must all plan ahead.

NOV

Bravo! Nice to read something positive through all the gloom and doom! I'm with you! Building a solid plan is essential! It's impossible to be successful if you don't know where you're going! So pick a destination and start moving forward!

Cheers!

Definitely something all agents should be thinking about. To keep the rhyme in your title it could be 'The Real Estate market might not be fine but do you have a business plan for 2009?'

NOV

yes I have been working towards plan for next year, so far I seem to have hit this years plan so here is planning to next year

DEC

Neal, thanks for the post. Looking forward to the future with a plan is always a great start.

DEC

I have 100% faith in preparing a business plan & taking the steps to stay on task. It helps keep me focused with a goal in mind. Good post. -Carla

DEC

I find that my plan keeps me focused and helps me stay motivated!

DEC

I need a business plan. I need a business planner. Or maybe I need to read one or two of these stinking business planning books I bought two years ago. No. I need a business planner book reader person. Now THAT's a plan!

FEB

Neat - Great post. A great reminder for all of us. I started a business plan last December but got sidetracked. I have to sit down and put them on paper. I'm expanding my web presence this year because I'm beginning to see results.

Neal, a business plan is very important for any agent, unfortunately many do not have one. It's great to set goals, but they need to be based on your history and the new habits you might start in order to obtain your goals or dreams. It's very improtant to know your conversion ratios with appointments and closings, the two are different. It's equally important to understand what percentage of your business is from listings and buyers. Kowing your average sale price will help you take all of this and put it into a fomula that enables you to know exactly how many appointments you need to make monthly/weekly to hit your goals for the year. Focus on apppintments and the sales will come regardless of your conversion ratio, it's nicer knowing what it is however.

FEB

Neal, it is suprising how many have no business plan, my business plan is always being reviewed. A nice post.

MAR

Neal,

Of course I have a business plan. I just haven't taken the time to write it out in full detail yet.

Did I thank you for your post on sending market reports? That's a part of my plans...except I've been spooked into giving it up prematurely because of the time we're in - what worked in the 90's may not work in the age of Facebook and Myspace - so I'm biding my time on that. I need to see for myself that it will not work, and I just started.

I do have to write it out finally, becasue it will help me keep track of my expenses. Thanks for the reminder - always good stuff.

AUG

Hmmm . . . it's August 22, 2009 -- 2009!! COME ON and take the FEATURE off . . .

AUG

Every year I start in the 4th quarter to review and assess my performance, milestones and accomplishments for the year. After I wipe the tears from my eyes, I start making plans for the coming year. This approach has worked for me and while I may not always hit my targets; I know why and how to correct my activity for the future.

The old adage:

"He who fails to plan, plans to fail"

OCT

i'll see if i can find it, it's probably still around here somewhere, i think.

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