How to Forecast & Create a Business Plan to Reach Real Estate Goals

Real Estate Technology with 855-419-6019

Planning the big picture can help you deliver a big return. You know that having a goal and clear strategies are important, but sometimes we lose sight of putting it all down on paper, and holding ourselves accountable when we get lost in the whirlwind of the day-to-day hustle. It has been proven time and time again, however, that people who write down their goals, spend time planning how they will achieve them, and hold themselves accountable in the day-to-day, are exponentially more likely to succeed and reach their goals. So let’s look at how to get the right plan in place.


First: Forecasting

Sales forecasting is a great way to start. This will help you generate a baseline for what is realistic to set as a goal.

  1. Review your sales from past years - Take note of things like how many new clients you took on each year and what the profit was per customer. It’s also a good idea to look at the timing around things. Was one month particularly good or bad? Think about why that might be.
  2. Dig into some market researchCheck out reports for home trends and predictions for both the nation as a while, and your particular market. This can help you factor in new growth for your goal setting.
  3. Evaluate your internal shiftsNow is the time to factor in your plans for hiring, or cutting back. If you know you’re going to be taking on new personnel, factor that expense into your forecast. Cutting back on marketing spend? Factor that in too.  
  4. Do the math - Whether you’re using a spreadsheet or free forecasting software available online, calculate a rough conversion rate to use in your forecast. Be realistic! Include things like:
    Target income, gross revenue, transactions for the year, number of leads you’ll need to work, the cost-per-lead, and be sure to factor in your day-to-day expenses!


Goal Setting

Now that your forecast is drafted, create some SMART goals. That means goals that are

  1. Specific
  2. Measureable
  3. Attainable
  4. Realistic
  5. Timed.

These guidelines will help ensure you’re setting yourself up for success. It’s a good idea to have one primary goal that you can work everything else in under. For example, hitting a certain number of transactions, or reaching a new level of income.

If your goal is to reach a certain level of income, make sure you build in strategies and activities that will support it. That means calculating how many transactions you will need, and how you’re going to get there. If you average 30 unscrubbed leads and 15 qualified leads per sale, determine how many leads you need each month to reach your goal.

Now that you’ve done your forecasting and determined some goals, the next step of your business plan is to build some actionable strategies for hitting the mark. That means putting plans around your focus area, changes you need to make, and well thought-out steps to take.


Focus Areas

To make sure everything is aligned in your business plan. Remember to make sure each strategy ties back to your target audience. You should be going after a particular segment of your market (whatever your niche might be), and you need to make sure each strategy is creating opportunities to reach then and engage with them.


Internal Changes

This is where you need to evaluate your hiring plan. Is it time to take on some new folks to really help your business grow? Make sure you have the timing factored in and the additional expenses. Additionally if you’re hiring another sales member, factor in the amount of business you expect them to bring in.


Next Steps

To really fuel your business and hit your goal you may need to re-evaluate your current lead generation and lead management systems. When you have the right technology partner you can start to see huge returns and major time saved working your growing database.


Fold your marketing strategy into your business plan. Include the best practices that will start to generate increased activity: increased calling, better conversions, more training or incentives for your team. Want some ideas of strategic objectives? Here’s a great list of ideas to narrow your focus.


  1. Geographic Farming

  2. Social Media Marketing

  3. SEO and Optimization

  4. Flyers, Post-Cards, and other Offline Marketing

  5. Email Marketing

  6. Paid Lead Generation/Facebook Advertising

Stay the Course, but Change Track if Needed!

You have a plan, you’ve got the actionable strategies baked into your plan, but none of it will be of any value if you aren’t measuring your progress. This keeps you accountable, keeps you on track, and helps you see where you need to adjust. Help yourself with reminders and tracking forms if you don’t have a system with a performance dashboard. Record your activity and calculate the results. This will help you spot problems or opportunities and keep you focused on the end goal.

Here’s a rough idea of things to track:



Make ____ contacts



Send ______ personal notes

Add _______ people to your database

Contact _____ FSBOs

Contact ______ Expireds

Hand out 5-10 business cards, 5 days/week and actively ask for business or for permission to add them to your database


Add ______people to your database

Hold ______ effective open houses monthly

Mail or email to your SOI/Past clients valuable market information

Mail or email to your designated farm of ______  properties

Door knock/ door drop _________ houses

Take ____ past client to lunch

Network with ____ business to business referrals

It’s time to put on your business owner hat and focus on strategy vs the day-to-day of handling clients.When you get the right plan in place, you power it with the right system, you can start to work on your business instead of in it. Learn how you can partner with the right system and build a better business.



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Show All Comments
Donna Foerster
HomeSmart Realty Group - Parker, CO
Metro Denver Real Estate Assistant

I love how-to's. The post will be extremely helpful in writing a business plan.

Sep 10, 2016 01:54 AM #1
Sandy Padula and Norm Padula, JD, GRI
HomeSmart Realty West & Lend Smart Mortgage, Llc. - Carlsbad, CA
Presence, Persistence & Perseverance

Steven at BoomTown Great post and one that will help many to set their goals and budgets.

Sep 10, 2016 02:15 AM #2
Janice Zaltman
United Realty Group - Boca Raton, FL
South Florida Residential Real Estate

Hi Steven:  It's great to create the plan, making it work and inspiring is the next step.

Sep 10, 2016 02:48 AM #3
Dusty Rhoton SRS, MRES, ABR, SRES, GRI
RE/MAX Fine Properties - Flagstaff, AZ
Flagstaff Real Estate

A Business Plan is Vital to success in any career path.  Having small goals and being able to check them off each day and each week is so rewarding.  Thanks for sharing!

Sep 14, 2016 11:41 PM #4
Tabitha Rector-Richardson
Premier Homes Realty - Owings Mills, MD
Premier Homes Realty (443) 415-4215

Great post.  Thanks for sharing!

Sep 15, 2016 11:40 PM #5
Lyn Sims
RE/MAX Suburban - Schaumburg, IL
Schaumburg Real Estate

One of the best business plans I've seen. Thanks.

Sep 16, 2016 01:10 AM #6
Jan Green
Value Added Service, 602-620-2699 - Scottsdale, AZ
HomeSmart Elite Group, REALTOR®, EcoBroker, GREEN

So true, tracking results is key to fill in the gaps of what's missing for income!

Sep 18, 2016 12:03 PM #7
John Wiley
Fort Myers, FL
Lee County, FL, ECO Broker, GRI, SRES,GREEN,PSA

Thanks for the great suggestions.

If you don't track you will never know what is working and what is not.

Sep 18, 2016 11:59 PM #8
Linda McGrath
Wilkinson ERA Real Estate - Charlotte, NC
"It Pays to Stage"!

Thanks for this post.  Forecasting, tracking and goal setting - critical elements for business success.

Sep 27, 2016 01:09 AM #9
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Steven at BoomTown

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