Business Planning for Realtors

Want to increase your production and ensure success in a very tough market?  Whether you’re a seasoned agent or a rookie just getting started, you need a key element in your planning – Accountability and an Accountability Partner. 

We normally view accountability as someone breathing down our neck and demanding production.  However, with the right business plan and an understanding of how simple it is to operate, we not only have our element of accountability but we reach our commission goals and find ourselves with more free time.

To give you a head start in making next year’s planning process a fruitful one here are 5 key elements that must be included in your business plan to give you that all important accountability:

#1 – Set Realistic Goals - Unrealistic goals can quickly discourage any agent no matter how long you’ve been in the business.  Ensuring that your goals are realistic will set the tone for the year’s production.  As a comparison tool use the numbers from a business plans of successful agents that have been in the business 3 to 5 years.  Just recently I was talking with Allen Wright, the creator of CreateAPlan, and he told me about a conversation he had with new agent.  He said that within a few minutes, he could hear the frustration she was experiencing in not meeting her goals.  After a short review and a hard reality check she made her own conclusion that her six-figure first year salary was too high.  The only productive goals are ones that are realistic and by setting them you will establish a pattern for long-term growth.

#2 – Define Activities – It doesn’t matter how long you have been in real estate, the necessity to define what you need to accomplish in very specific terms will always be a requirement.  Without a clear definition of what, where, when and how you are not going to be able to successfully monitor your weekly activities.  Seasoned professionals know what activities they need to do to keep their pipeline full.  However, during a recent forum on business planning, most agreed that they knew … what to do, but just plain forget to do it.  These items would include the calls to your sphere, past clients and personal visits, etc.  Having your list of activities reviewed weekly with your accountability partner keeps even seasoned professionals sharp.

This is a critical element for newer agents from a psychological aspect since much of their work will not reap immediate rewards.  Keeping focused on the fact that you are meeting your goal of work activities will keep you motivated until the prospecting and generated leads turn into transactions.

#3 – Identify Issues – By comparing and examining the activities and appointments you do you can determine what activities work best for you and your particular skill set.  This is an overlooked function that is a critical element in determining your longevity in real estate.  Professionals that give attention to this area are the ones that accomplish the finite activities rather than attempting to do everything, which usually ends up in leaving the job undone.

#4 – Add Accountability – Being able to easily view activities will allow you to supervise your own progress and add those needed extra incentives to get you over the top.  Accountability ensures that you will examine problems early-on and catch those causing you to fall short of your activity goals.  And let’s don’t forget - all those in the sales profession need praise when they do well and a good kick in the “gluteus maximus” when they don’t.  When you view your activities through the lens of your business plan it gives you that ability.

#5 – Have Meaningful Reviews - Instead of internally discussing with yourself what did or did not work with no real statistical measurements, a business plan reveals those items that are working and those that need attention.  View your business plan as a comparison tool that allows you to identify critical components such as:

·          Overhead or marketing expense changes

·          Changes in closed transactions

·          Changes in earnings

·          Discrepancies in sources of business

Going into 2009 after the trials, tribulations and uncertainty of last year without a formal business plan is the first step in surrendering to the circumstances and your competition.  You can have the power to manage a real estate business effectively, regardless of their number of years in the business, with a contemporary online real estate business plan specifically designed to help you through the process.  If you want to ensure your success in 2009 take some time and explore CreateAPlan, the country’s #1 online business planning tool for real estate professionals.  Visit www.CreateAPlan.com and enter the promo code NRN159 and receive a 20% discout.  Planning for a successful 2009 is too critical to leave undone.