How to Build a Successful Plan for Your Real Estate Business
November was always the time of year when I would prioritize my real estate business planning.
We have all heard the phrase “If you fail to plan then you plan to fail.”
Having a plan and really treating your career like owning a business is key to your success.
As my business began to wind down to a more manageable pace at this time of year I would take the time for my annual business planning retreat. My real estate team would plan a destination retreat for the November holiday weekend to get away and spend two full days on business planning, goal setting, budgeting and brainstorming for our real estate business for the upcoming year.
This was a great chance to get away, spend some focused time during the day and enjoy some team building entertainment and the destination we were staying at in the evenings. Oh and the best part of the trip was you got to write it all off as a business expense! This week I want to give you an idea of what you can cover during your business planning time.
Looking Back at Your Real Estate Business
“Success and history always leaves us clues.” I began by looking back to identify the clues that have been left for us and the business. I would look at the real estate market first and search for the following clues.
- What have the number of sales been doing the last year? 2-5 years? Up? Down?
- What have the number of listings been doing the last year? 2-5 years? Up? Down?
- What have the average and median prices been doing?
- What price ranges are experiencing more activity? Less activity?
- What neighborhoods or areas are experiencing more activity? Less Activity?
- What property types are selling more? Less?
- What buyer types are buying more?
- Where are the buyers coming from? Local? Next state or province? Over Seas?
Imagine the targeted and strategic plan you would be able to build for you and your real estate business with this mind of information?
Now you are not just winging it. You really know where and what to focus on.
Looking At The Present State of Your Real Estate Business
- What have my sales been doing? Up? Down?
- What have my listings been doing? Up? Down?
- What is my average price? Can I raise my average selling price?
- What is my Gross Commission Income doing?
- What is my average deal worth?
- Where are my listings and sales coming from? Sources of business?
- What types of buyers do I represent?
- Where are the buyers coming from? Local? Out of area?
- What are my pending sales?
- What do I have for potential buyers and sellers?
Strategic Business Planning for Your Real Estate Business
What if you took the time to really track and measure and reflect on your business at a deeper level and see your strengths, weaknesses and opportunities?
- Activity Plans – Take the time to lay out your activity plan calendar a year in advance. Focus on the activities you know you are good at and you see a return on your invested time and money. I am guessing for most agents it would be your sphere of influence, referrals and face to face or voice to voice activities.
- Budgeting – Profit is the goal in business. Knowing what your personal life and your business world cost you monthly is so important. Expense management is just as important as your income and earnings. Have a clear picture of your expenses and measure all of them for their return on investment or if they can be reduced in any way.
- Goals – “If your "Why" is big enough the "how" will take care of itself.” What is your purpose? Vision? Values? Mission Statement? Taking the time to know what it is you want and why you want it is a game changer for us all. Nothing gives me more joy than impacting and improving people’s lives personally and professionally every day.
In my own real estate business, taking the time over the last 22 years to create a business plan has been so incredibly beneficial for me and I know it will for you as well.
In today's post I have given you a brief business plan overview. To help you get going with your own plan I put together a step by step Business Plan Workbook you can download for free using the form below.
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Strength and Courage,
Wade
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