createaplan: Downward Planning - 05/29/08 10:47 AM
Let's just be frank and straight forward.  For those of you that think Business Planning is a process of listing out your goals and showing them to your manager I will give you a one-word summation "BROKE" ... which is probably what you will be if that is your plan.  In a down market your business plan is the tool that you should be using to take corrective action and cut expenses where possible.
 How?  Simple, with your Business Plan and your dedicated use of your plan you should see which Activities you are doing that generates you the most number … (4 comments)

createaplan: Goal vs. Plan - 01/28/08 07:43 AM
Anyone can set a goal, but goals offer no means to accomplish themselves. 
Goal-setting is as arbitrary as making the statement; "I want to earn a million dollars!" 
If you want to earn a "million dollars" a business plan will define what you will need to do to realize your ambition.  A goal is just a desire with no statement of action to achieve that desire.  Before examining the components of a business plan let's define more clearly the differences between goal settings and a business plan. 
To accomplish the task of differentiating between goal setting and a business plan let's … (7 comments)

createaplan: Progress? - 01/28/08 05:55 AM
You need to have the ability to check your progress.
What good is creating a business plan, if all you plan on doing with it is throwing it in your desk draw never to be seen again?
Your business plan in-and-of-itself is just a tool
A tool to guide you to your desired goal
A tool to help you make changes if you are not meeting your desired goal
A tool to help you make better business decisions
 
If your business plan just sits in a draw how can you tell if you are meeting your goals for activities, revenue and expenses?
Check your progress by meeting with … (5 comments)

createaplan: Best and Worst Thing About Real Estate - 01/28/08 03:39 AM
Do you know the BEST thing about the real estate sales business?
Everything works!
By this I mean there are countless ways to develop business and market your services in this industry. 
From Open Houses to Floor Duty to Farming to Canvassing to Cold Calling to the Internet and beyond.
Personally, I know agents that never seem to get business from Open Houses.  Yet I know several agents in the same market that host 2 and 3 Open Houses every weekend and get close to half their business from Open Houses
Why is it that some activities work for some agents and not for others?
This … (5 comments)

createaplan: Timetables for your Business - 01/25/08 08:33 AM
Timetables are a part of everyday life.  In Planning your Business you need to set timetables.
If you made the statement "I want to make a million dollars!" how long do you have to do that
A Week?
A Month?
A Quarter?
A Year?
A Lifetime?
 
Your timetable will help you in defining your business plan.  Within your plan you should have annual goals as well as weekly, monthly and quarterly goals.  Your weekly and monthly goals should be more Activity Oriented, I need to do this many Activities this week or month.
Revenue and Expense goals should be addressed in Quarterly and Annual terms this will accommodate for the … (5 comments)

createaplan: Decide What You Want And Write It Down - 01/25/08 04:42 AM
Deciding what you want is the first step in developing your business plan you want consider not only monetary but other goals such as personal development and family time.
Although your business plan will focus on the fiscal aspects of your business, having a clear understanding of your other goals is helpful.
Do you plan on being a sole standing agent or create a team?
Write It Down
A Clearly Defined and Written Plan
Is Powerful
Every week you know what needs to be done to meet your desired income
Is Motivational
Today I must do these activities towards meeting my desired goal
And Adds Accountability
I know … (1 comments)

createaplan: Why Are You In Real Estate? - 01/25/08 04:24 AM
Purpose of your business?
Why are you in real estate?
What is your Aim?
What is your Goal?
Did you enter this business to Control your time?
Did you enter this business to Be Your Own Boss?
Did you enter this business because you Like to Work with People?
Did you enter this business because you Like To Look At Pretty Houses?
 
I hope you entered this business To Make Money
If you didn't then there is not much Business Planning Will Do For You.
 
5 Steps to Aiming
First, Decide What You Want
Second, Write It Down
Third, Create A Timetable
Fourth, Develop your Activities
And Finally ... Step Five, Check Your Progress
www.CreateAPlan.com
 
(2 comments)

createaplan: Seven Point For A Plan - 01/18/08 10:06 AM
Seven Point Plan of Action
1. How Much Do You Want To Earn?
Be careful. Revenue is not income.  Revenue is the gross earnings before expenses and taxes.  Income is what you keep after all is said and done. Do not confuse the two. If you do not set yourself an income goal for the year, chances are very likely that you will not achieve it.
2. Know All Your Expenses.
There are two types of expenses, fixed and variable.  In real estate that translates into Overhead and Transactional Expenses.  Overhead would be defined as those expenses, such as license fees, E&O insurance, signs, … (4 comments)

createaplan: 3 Parts Make A Plan - 01/15/08 04:18 AM
You should develop your business plan in three distinct yet inter-related areas.
Design your Plan listing how many listings and buyers you must closeDesign your Business Development or Workload to define where your business will come from and how many activities you must do to meet your income goalDesign your Accountability Have a way to compare what you planned to do with what you have actually done-1- Calculating the number of transaction you will need to close requires some information and a little calculation
There are several pieces of data you will need to develop the fiscal portion of your business plan
On the … (4 comments)

createaplan: Dieting and Business Planning - Yes there is a connection. - 01/15/08 04:03 AM
Yes there is a connection between dieting and business planning.  Here goes:
Have you ever received an invitation for a class reunion or family gathering.  After figuring out what to wear many of us think about losing weight before the event. 
Let's say you have a goal to lose 20 pounds.  If all you do is set that goal you are in essence "Wishing". 
If you write down that goal and tape it to your bathroom mirror you are still "Wishing".  Although you should be commended for at least putting your "Wish" in writing. 
A basic plan for losing the weight would … (2 comments)

createaplan: What Is Direction? - 01/14/08 09:46 AM
Previously I discussed
FOCUS http://activerain.com/blogsview/338656/What-is-FOCUS
CLARITY http://activerain.com/blogsview/338661/What-is-CLARITY
But if all you have is FOCUS and CLARITY you will have accomplished NOTHING if you do not have DIRECTION.  Direction is your Aim or Guidance.  Direction is choosing the activities that you will do each and every day to make enough appointments to close enough deals to ultimately reach you income goal (which is your FOCUS).
The best and worst about real estate is that there are so many ways to produce business ... finding out which items best suit your skill set is what makes this job difficult.  The things that you do each and every … (0 comments)

createaplan: What is CLARITY? - 01/14/08 09:37 AM
In my previous blog I discussed FOCUS http://activerain.com/blogsview/338656/What-is-FOCUS 
Now I would like to define and discuss CLARITY.
The difference between the two can be seen in these two statements
FOCUS - "I need to make X number of dollars."
CLARITY "And to make this I will need to close THIS many transactions."
Clarity is to make clear.  In real estate we need to clarify our FOCUS by stating how many transactions we need to close to make X amount of dollars.
As you put together your business plan for 2008 start thinking about FOCUSING your plan on NET dollar and CLARIFYING that plan with specific number of … (1 comments)

createaplan: What is FOCUS? - 01/14/08 09:31 AM
What is Focus?  By definition "focus" is to center your attention on a problem. event, situation or action.  In real estate focus should be the goal of our efforts.  What do we need to make from our real estate business in order to pay all our expenses and have enough left over to pay ourselves and pay taxes.
Unfortunately. many focus on the wrong thing.  Many focus on GCI (Gross Commission Income) and the last time I checked you didn't pay your bills using GROSS dollars but rather NET dollars.
So with that in mind would everyone make their business plan using NET … (2 comments)

createaplan: Year End Review - 12/10/07 11:03 AM
It is coming to the end of the year ... for many that means parties and time to visit family ... although I do that too I also visit with many clients about their own personal review.  Yes you should do a personal review of your business at the end of the year ... not at tax time.
Step One - Re-examine the business plan for the year.  Ask simple questions, Did I meet my Income Goal?  Were my Assumptions correct?
Step Two - Look at the items you have control over Expenses and Activities ... did you meet your goal for these … (0 comments)

createaplan: The ABC's of Business Planning Part III - 11/25/07 04:23 AM
In our last episode our heroes learned two key elements about they're business; number of transactions required to meet their income goal and their overhead per transaction. 
In Part III "Where does it come from?" we discuss using your business plan to layout your road map to achieving your income goal and verifying that your goals are realistic.  For the sake of this article assume that you need to close 15 listings and 12 buyers to make your income goal. 
The first step is to determine what sources of business you will pursue.  Where will you get your 15 listings?  Will you get … (7 comments)

createaplan: The ABC's of Business Planning - Part II - 11/25/07 04:18 AM
Your Business Plan should reveal two very important items amongst other things:
•1)      How many listing and buyers you must close
•2)      How much you spend per transaction in Overhead
Knowing how many transactions will determine the activities you need to do to meet your goal.  Overhead Per Transaction figure represents what comes out of each commission check to pay for all of your personal marketing and overhead.  This figure is key to making judgment calls such as a reduction in commission or the dreaded "Commissionectomy".
"Where does this business come from?" Use your business plan to layout a road map to achieve your income … (0 comments)

createaplan: The ABC's of Business Planning - Part I - 11/25/07 04:16 AM
It is approaching that time of year again where your manager, be it you or another person, wants to know what you plan on doing next year, a business plan.
The big problem with business planning, people confuse it with goal setting.  Nothing is further from reality.  A goal is plucked from thin-air.  A Business Plan is a calculated road map examining the revenue your business needs to generate and the expenses it takes to make that revenue.  You are a business and businesses have expenses that need to be accounted for in your business plan.
 ... Hence the main fault of … (0 comments)

createaplan: Wake Up Message from The Business Planner - 11/25/07 04:12 AM
It is the end of what may have been the worst year ever for many ... if you plan on staying in real estate for 2008 you need to start planning for it NOW.  Because many in this business thought the moment you got a license the phone would just magically ring? ... WAKE UP
A Business Plan is not a panacea for an ailing business.  A Business Plan is there to give you answers about your business and help make better business decisions.  Additionally, a Business Plan, if used properly, will be your road map to achieving your income goal.
However, A Business Plan: … (3 comments)

createaplan: Get off your whine and plan! - 11/16/07 12:15 PM
I have written a lot of articles in my career on planning ... here is one to kick you in the **** and get you going:
Now that the summer selling season has ended, you may be looking at your earnings so far this year and feeling a little short.  But instead of crying over spilt milk, think about how you are going to change your business plan for next year.  What's that ... you don't have a business plan?  How do you know what marketing items worked and which ones didn't?  How are you going to calculate the impact on profitability of … (4 comments)

createaplan: Basics of productivity - 11/16/07 12:11 PM
Productivity requires some basics.
  Developing financial objectives in terms of a budget, including sales revenue objectives and expenses. 
Increasing sales based on your financial objectives, including prospecting, listing appointments, listings taken, listings sold and buyers closed. 
Setting marketing objectives including determining the budget for marketing, the channels for marketing and advertising and the "What Works" of the marketing in the above channels 
Tracking your business and making better business decisionsAnyone can figure out why not to do something.  "It's too cold, I'm too busy, I'm tired, or it will just take too long to complete." Yet, to obtain spectacular results requires a plan. I can … (0 comments)

 

Allen C. Wright

NS, AHS, REPS

Aliso Viejo, CA

More about me…

RealtyU

Office: 949(349) 939-4115

Thoughts and Commentary on Education, Training, Economics, Professionalism, Productivity and other things real estate oriented. www.RealtyU.com, www.CreateAPlan.com


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