Tuesday Business Planner from Cary in Margate

By
Real Estate Agent with Coral Shores Realty

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.

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Rainmaker
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DALIA KIBBY
Sellstate Partners Realty - Cooper City, FL
Selling Broward County Homes with Passion!

It's eerie how you know that I'm about to go in the office to do...my business plan! 

A few weeks ago, my manager gave associates the forms we need to complete our business plans along with the deadline.  Ugh!  I like your method.  Our business plan also asks that we articulate what we're going to do with the earnings...last year I said I'd like to have two new bathrooms plus a new backyard patio.  Well, as of this writing, I have my 2 new bathrooms & have a call in to a screening company for the new patio (may not make that last goal but I'm close!).  

Good luck in 2008!

Nov 27, 2007 12:27 AM #1
Rainer
13,925
Cary & Kim Johnson
Coral Shores Realty - Margate, FL

Dalia,

Great point!!!  Just like taping the picture of the new Beamer, Mercedes, Lexus, etc.  to the bathroom mirror so you must look at it each morning.  If we don't work for goals, why work at all...

Best wishes to you on your plan. 

Cary in Margate

Nov 27, 2007 12:33 AM #2
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Rainer
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Cary & Kim Johnson

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