2008 is here and promises to be an interesting year for those of us in the real estate arena. As an active real estate broker, I am filled with optimism and excitement at what this year will bring for my business. I am also filled with confidence because I have a road map in place to help me achieve my business goals. Each year in December, I create a business plan for the following year - with this in place, I feel a sense of peace in an otherwise business that can be chaotic at best.
I am sure it is a well known fact that lack of planning is one of the key reasons for business failure. However, you would be amazed at the number of real estate agents I talk to who do not have a written business plan. Not having a plan is like a football team showing up for a game without any predetermined plays or a tourist visiting an unknown city without a map. Planning is a must - especially in trying times.
When creating your plan remember that you own and run your own business - regardless of where you hang your license, it is your business. You are a business owner who happens to have real estate as the product offering. As a business person, make sure you have your financial piece in order - do you have a business bank account, if it makes sense are you incorporated, do you have a trusted cpa and attorney available to you?
The key components to your plan will be to:
- Assess your current position - is your business where you want it to be? What is your brand? Who is your audience? What message are you sending them? What is your differentiation from your competitors?
- Define your business goals and focus - what is your income goal? What is your definition of success? Personal goals?
- Create your action items that will allow you to reach your objectives - Determine your sources of business (ie open house, internet, referrals, sphere/past clients, sing calls, postcards, farming). What must you do to obtain business from these sources?
- Revist your plan - business planning is an evolution - track these items at the very least: prospecting activities, listings appts taken monthly, listing contracts written monthly, listings closed monthly, buyer apps taken monthly, buyer closings monthly, monthly expenses, monthly revenue.
Once you have a plan in place, then it is time to implement and execute. An idea without action is simply an idea - action is critical. If you do not engage in behaviour that generats business, then you will be unemployed - say that to yourself every morning and I guarantee you will feel motivated to take action.
If you are overwhelmed, try and focus on 3 areas: leads, conversion and retention - keep in mind that we are in the prospecting business first and foremost. Once you create an ongoing abundance of leads, then you will need to perfect your conversion skills (this will occur through systems you implement and by practicing scripts and dialogues). Finally, you will want to implement a client retention program - this entails setting up a database of past clients and sphere list and creating a monthly touch plan for these groups. Your goal should be 12 touches a year to your sphere/past client list - this will allow you to achieve the retention piece of your business.
Plan your business now and reap the rewards!
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