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Designing a Successful Real Estate Business Plan for 2008!

By
Services for Real Estate Pros with Crescent Moon Realty, Inc. & Land N Sea Auctions.

A business plan in selling real estate is a must. A successful business plan is no longer an option. It is extremely simple to design a very useful business plan, it will take the following ingredients.

  1. What is your monthly debt personally and professionally.
  2. How many real estate transactions must you have to not only survive but thrive in real estate.
  3. What is your return on your investment. (ROI) Analyse each transaction, as to cost, time and return.
  4. Establish a budget for expenses. Adhere to this budget at all times.
  5. Be a good steward of your money.

I knew a local top producing agent that had his name on everything you could conceivably think of, from bench's, to billboard posters, to mobile truck signs, to splashy ad's in the paper. It looked like he was doing a huge volume of business ---- it came as a big surprise at the end of the year when his accountant informed him that he had only made a little over what is consider a average income that could have been equal to a person earning a income from a 9-5 at a very mediocre job.

The time it takes to do a business plan is approximately about two-three hours at most. After you have created this plan share it will all the members of your team. Check it monthly. Make adjustment when necessary.

Here is to your success in 2008.

Lorraine

Posted by

Being a real estate broker takes on the form of leadership. The agent/broker role is to lead the client through the home purchase or sales process and serving them with the highest customer service standards. Crescent Moon Realty, Inc & Land N Sea Auction goal is to help the client achieve as many of their goals as possible - so that both parties feel that they are in a win-win.

Find out the benefits to selling or buying a home traditionally or non traditionally ---Contact us @ 1-760-650-2157 Or visit our websites @ www.LandNSeaAuctions.com or CrescentMoonRealty.biz.

Lorraine or Loretta

Show All Comments
Anthony Stokes-Pereira
Better Homes and Gardens Rand Realty - Nanuet, NY
Realtor

Hi Lorraine and Loretta,

Great post and very informative. We all should make plans for our future and your list is a good thing.

Nov 28, 2007 02:43 AM
Aggie Friend Kay Perry, A&M Class of '94 & '97
Kay Perry, Broker - College Station, TX
Hi Lorraine and Loretta, Great information to help guide us while we make our marketing/business plan for next year.  thanks.
Nov 28, 2007 03:07 AM
Kimberly Grant
Exit Leon Crawford Realty - Huntsville, AL
Real Estate Agent - Huntsville Alabama
Good post ladies.  My first year or so I had NO business plan whatsoever... I was just flying by the seat of my pants as they say and I have NO IDEA how I made it through.  Now I have to have a plan.  I need one for the year and then it has monthly goals and weekly goals that everyone shares to make the big plan happen.
Nov 28, 2007 03:14 AM
Lorraine or Loretta Kratz
Crescent Moon Realty, Inc. & Land N Sea Auctions. - San Marcos, CA
Certified Negotiation Consultants

Hello All:

Yes, I agree it is never to late to formulate a business plan, I too was very foolish when I started out as a new agent, and I went Thur my reserve funds like it was water until tax time came. I learn very quickly that one of the most important things you can do is treat your career as an sales agent as a real business. I also, learned that its nice to have write off's but you have to have the money to initially write off the expense. Another important lesson I learned was that I needed to be accountable, no longer could I hitch my enthusiasm to any old scheme, I had to evaluate the pro's and the con's and see how it impacted my bottom line.

Thanks to all that shared.

Lorraine

Nov 28, 2007 03:51 AM
Wendy Bibeau
Keller Williams Realty DTC - Aurora, CO
The Bibeau Group - Realtor - Denver Colorado Real
Thanks for the tips....I'll be working with my new team to write a business plan very soon!  What do you think is the best way to calculate ROI?
Nov 28, 2007 07:38 AM
Anonymous
Lorraine
What a great question Wendy: To calculate the return on an investment you need to take an measure the performace of the investment to a relative other investment. IE: Using a direct marketing campaign versus using door hangers. You would take the cost of the direct marketing cost, lets say its $1,000 to do a 500 mail out to a area that you are farming, and you get two people that want to list with you, and let say that you are able to convert them to sell-able listing and the net on this return would be two sell-able listing minus the $1,000 for the mail out. Then you would look at the cost for the door hangers, and let say they run about $250.00 for 2,500 door hanger and you get three sell-able listings from the door hangers. So, your return is better on the door hangers then on the direct marketing piece. That is ROI. HOpe this was helpful.
Nov 28, 2007 08:14 AM
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