Real Estate Business Planning

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Real Estate Agent with Remax 200 Realty BK645994

I don't read a lot of management books - at least not since I finished my MBA 22 years ago. One that I have read is Steven Covey's "Seven Habits of Highly Successful People." I was in a goal setting meeting at our office yesterday, and I started thinking about the seven habits and how well they correlate to our industry. Covey groups the habits into three different areas, so today I am going to focus on the grouping he titled "Private Victory". The three habits that fall into this category are "Be Proactive", "Begin with the End in Mind", and "Put First Things First."

The typical agent in our market only sells three or four houses a year, and I think a lot of that is directly related to them not having any kind of plan. Sitting and waiting for the phone to ring is not a plan. You have to be proactive, and that can mean a lot of things. Some people read that and immediately think it means cold calling. That is not necessarily the case. It just means that you have to reach out to the market, and let people know that you are in the real estate business. When making plans, you need to begin with the end in mind. How many people do you want to help this year? Assuming you are in business to make a profit, how much money do you need to make and how much do you make on your average transaction? Divide the former by the latter, and you will have the number of people you need to help. It is not rocket science.

Finally, you have to implement your plan, and that means putting first things first. We are always juggling three aspects of our business. I call them the three C's: contacts, contracts and closings. Before you can go to a closing, you have to have a contract. Before you can have a contract, you have to make contact with buyers and sellers. So, if you are really putting first things first, you are meeting potential customers. I have heard the average person knows about 300 people, and that sounds like a pretty good sized datebase of potential customers and referrals. Think of these three habits when you are working on your business plan, and read Covey's book for a whole lot more detail than I have written about here.

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Rainmaker
1,537,857
Brian Madigan
RE/MAX West Realty Inc., Brokerage (Toronto) - Toronto, ON
LL.B., Broker

David,

Good advice and hopefully it will all work foor you in 2012.

Brian

Jan 19, 2012 12:27 PM #1
Rainer
144,225
Former Agent
None - Adak, AK

Hi David, great philosophy.  I too have read Covey's book.  I may need to revisit it.  Thanks for the reminder.

Jan 19, 2012 12:35 PM #2
Rainmaker
1,035,371
Rob Arnold
Sand Dollar Realty Group, Inc. - Altamonte Springs, FL
Metro Orlando Full Service - Investor Friendly & F

Covey has an excellent book.  I remember Begin With the End in Mind.  You have to know where you are going before you can set up a plan to get there.

Jan 20, 2012 08:04 AM #3
Rainmaker
219,305
David Welch
Remax 200 Realty - Orlando, FL
#OrlandoRealEstate Optimist

Thanks for the comments. I know we all have heard that nobody plans to fail they just fail to plan. I am about to post the second in this little planning series. I hope you like it too, and look forward to your comments.

Jan 26, 2012 05:51 AM #4
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Rainmaker
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David Welch

#OrlandoRealEstate Optimist
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