A few years ago, there ran a TV commercial by Staples, in an effort to gain attention as a purveyor of school supplies. Shown, was a happy and carefree mom and dad, swinging through the store and filling their cart with pencils, notebooks, backpacks and other necessities of school life. All set to the festive Christmas song, Its the Most Wonderful Time of the Year. Bear in mind, this was run in August.
Straggling behind those loopy parents, were a junior high school aged brother and sister, scowling and miserable at the prospect of the oncoming school year. The contrast was hilarious; the commercial became an instant classic.
So, what's the point here?
Every December, I talk up agent business plans for the coming year. After all, a real estate agent is an independent contractor and basically owns and operates his own business. Certainly the brokerage is tied in to it, but the success or lack thereof is mostly up to the agent.
Lots of successful agents will make a successful brokerage. So you can see my interest in the program.
Here's the drill...I open the weekly sales meeting with the usual banter. Who had a baby, how's the Christmas shopping coming along, what about that awful recession--usual stuff. Suddenly there is a pause in the punch--a moment of solace. I look around the room to see dozens of faces. Some are munching on blueberry muffins; others sip coffee, while a few are probably thinking about their part time job, which will run out after the Christmas holiday.
Most of the group knows what's coming next. Yes, it's the annual business plan presentation. Whether it is through paper handouts, dry-erase board or Power Point, it has begun.
Immediately, I sense the subdued groans--one reliable agent always picks this moment to emit a loud yawn. "Wow, excuse me," she will say.
I know that the top producers have already been working on their plans and budget. Others may want to, but haven't yet gotten around to it. The newbies are wide eyed and ready to absorb any and all info that will help them jump-start business. And there are a very few including the yawner who will instantly become one of the children of the Staples ad.
Is it because she does not believe in the concept? Does she already have enough business, that she doesn't need a plan? Is someone else doing it for her?
No on all counts.
Is she afraid of the process--possibly the commitment?
Yes.
Since this is a blog, I will be brief, though I could write volumes on the subject. A business plan can be as simple or complicated as your comfort level. It does not have to be a doctoral thesis quality report. I have seen very successful business people write their entire plan on a chalkboard, which they will hang at an easy to view area in their office. I've seen it as a computer background, handwritten on a legal pad, and yes, there are many who will create a formal plan. Point being, it doesn't really matter. What’s important is to do something, anything.
Call it a map if you will. A favorite example is the driver, traveling on strange country roads at night. He’s not sure where he’s going, only that he wants to end up somewhere really wonderful. He has no map and no clue where the roads lead. His only visibility is through the headlights, which allow him to see a couple hundred feet ahead. Hopefully (key word), he will end up where he wants to be.
Is that you?
The purpose of a business plan is to identify and lay out your own map for success. Simply answer a series of questions and then design actions to address the answers, schedule it all on a specific time frame and hold yourself accountable. Or get your broker to hold you accountable. Or another agent, your husband, wife, somebody please! Oh yeah, like a road map, it only works for you if you use it.
I'll help you out--here are a few of the questions:
- What are your 2008 numbers for listings taken? Listings closed? Listings expired? Escrow sides opened? Escrow sides closed? Commission income?
- How much money do you want to make in 2009?
- To do that, how many sides must you close?
- How many closed sides will be listings? Buyers?
- What percent of your listings will result in a closed sale?
- What percent of your buyer clients will actually close?
- How many hours per week will you work?
- How does that translate to $$ per hour?
- Where did your clients come from in 2008?
- Do you have an SOI referral program?
- Which activities do you still do that no longer work?
- What do other agents in your office do, which seem to work for them?
- Do you have a marketing budget? How about a general business budget?
- What are you really good at?
- What are you weak at?
- How can you make your strengths work better for your business?
- How will you manage around your weak areas?
- Do you have a work schedule that you adhere to?
- What is your self education plan?
- What are the key threats to your business?
- What do you do different than the competition?
- Do you have a plan to live a full and productive personal life?
- Do you have an effective system for, contact management? Listing process? Escrow process? Time management and blocking? Tracking your marketing? Tracking your income?
- Do you know what a system is?
- The most important question is, “Are you cut out for this business?”
Just answer these questions on a piece of paper and you will have a snapshot at where you currently stand. I promise it will make you ponder.
After that, you develop individual action plans to determine how you will get there, and then attach scheduling and time frames whenever possible.
Lastly, but most importantly is the accountability process. You need to become the employee of your own business and there needs to be consequences. Just as a salaried salesperson would receive a periodic review by her boss, so should you—either do it yourself or utilize an accountability partner. Fire yourself, if necessary. Make that worker earn her pay! If you want to get hired back, you’d better recommit to the plan.
Is it that simple? Yes and no. It is not so tough to develop a plan. It is sometimes a Herculean feat though, to stick to the game. Habits, habits, habits.
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