FLASHBACK – September 2004
Today is my first day as a REALTOR® and I’m so excited. Arrived early at the office and sat down with my Broker to get my first assignment. Introduced me to the staff and fellow agents and he said “Now that you have your license go out and sell sell sell and walked away.
The office manager showed me how to get logged onto the MLS and some very basic searches and I was totally lost. As a ”wet behind the ears agent,” the first thing I did was get on the phone and start calling friends and relatives letting them all know that I had started a new career in real estate and if they or any of their friends or relatives were interested in either selling or purchasing real estate, in the Myrtle Beach area, to please give me a call. Well weeks went by and the phone wasn’t ringing, so I approached my Broker and asked for his help in learning how to be a good agent.
First, he said you need to make a plan, compile a list of friends and relatives, start calling them and keep records. My first question was where will I keep this information and he said in the MLS system or on 3 X 5 cards. I was definitely overwhelmed by all of this and figured I would keep it as simple as possible. So choice was to keep it on 3 X 5 cards.
So, I started working on my business plan and doing floor duty whenever possible.
Preparing a business plan is the most important step an agent must complete. This thought process is your road map to success or failure. My first realty check was when I realized that I was no longer an employee getting an hourly wage, but an independent contractor to a company and if I expected to get paid I had to earn it myself. Therefore, I had to be accountable for all of my actions.
- During this process, I will have numerous decisions and actions to ensure my success. I must follow these steps every day with confidence so that I can succeed at any level I choose.
Step 1.Determine my income commitment. WOW. This is pretty simple. Now I’m all set to “go out and sell sell sell.”
FLASH FORWARD – 2013
After nine years in the business I have had a lot of falling down and getting back up days. Every year I prepared a business plan and after 2 or more months I would get so wound up in my business that I would lose sight of where I was going and what I was accomplishing. My business concept was the “spray and pray method.” Spray my name all over and pray that people would ask me to assist them in the buying and selling of real estate.
In the later part of 2012 I made a major decision – I could not serve all people and I would have to be more focused in order to survive.
The business plan I was about to prepare was not going to be something that got put on the shelf and collect dust. It was to be, not only my road map to success, but the way in which I would conduct my business each and every day of the week -- an interactive plan. It will not only be simple in concept, but detailed enough to be followed daily. This plan will include, but not be limited to, the following:
- · A review and analysis of my desired take-home revenue,
- · Breakdown of activities I will need to commit to doing in my business
- · Address areas of my business that will need to be examined and planned in order for me to become a successful top-producing real estate agent.
OK, here go …
1. What is my desired take-home revenue
In the past eight years, without a detailed plan, I have been fortunate to make $21,000 to $32,000 Gross Commission Income (GCI). My goal for 2013 is $60,000 GCI, with an average sale price of $150,000 in my current commission program.
2. Break down activities needed to commit to doing my business. This is the meat and potatoes of my business and will take some soul searching, analyzing my past performance and business practices – man I sure wish I would have kept better records back then.
3. Examine areas of business, e.g., lead generation, listing and selling practices, database management, strategies, Open House, farming, etc., to name a few, and rework these areas to become more efficient. The “spray and pray method” will no longer work.
Once again I wish I would have kept better records of what I did and how I got to where I am today. This will be a definite transformation of my work ethics and actions.
My revised business plan is an interactive plan and describes not only my daily tasks but what I will do to prepare myself for the future – Exit Strategy.
My advice to newbies:
1. Sit down and decide what will be your Gross Commission Income (GCI) or Income Commitment.
2. Prepare an interactive business plan. If you have never been taught or held accountable to the fundamentals of business planning get help from your Broker, Office Manager or mentor.
3. Determine the area of business you want to work, e.g., niche, location/geographical area, etc.
4. And finally, how long do you see yourself wanting to sell real estate. What do you want to do when you are tired of the real estate business or want to retire? This will be your Exit Strategy.
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