It's coming!!! Very soon Brokers will be asking Agents for their 2008 Business Plans...
My gripe has always been that everyone tells you what to do (make a business plan) but no one tells you how. So as I took my coaching certification courses, I said to myself, use that MBA to come up with a simple plan, so...
After 20 years in the military, running 3 entrapeneurial business and being a salesperson for most of my life here's Cary's simple business plan formula.
1. Do the numbers, and start at the top!
Ask how much do I want to make next year (be realistic) Example $60,000
Review what is your average sale, and net commission from Example $250,000/$5500
Do the simple math, I want to earn $60000/$5500 earn per deal... I need to do 11 aveage deals next year.
One per month!
2. Ask yourself how can I do one per month? Say I want to do 70% of my biz from Listings, 25% from Buyers and 5% from rentals (I count 4 rentals as one deal). So now I know I have to sell 9 of my listings next year, I need to close 3 buy side transactions and do 4 rentals. But wait Cary, that adds up to 13 deals -- ok there's some rounding slop here and I say target those goals high!!!
4. We're not quite done with the numbers, I want to sell 9 listings next year. What is my sales per listing ratio. Will I sell 10%, 25%, 50% or will I sell every listing I take next year. In this market, this is the million dollar question isn't it? For our example I'll say we'll sell 1 out of 4 listings taken in 2008 (that should be low, but once again set the goal high) 9listings/.25 is 36 listings. We need 36 listings in 2008 to meet our goals - 3 per month!
That's it. Just fill your numbers into the example and you have it! Sales number planning on the KISS method. I'm getting long winded so check back for my next post and we'll discuss where those listings come from.
I'd love your comments!
Cary Johnson, Coconut Creek, Coral Springs, and Margate Florida Real Estate.