Business Planning What does this year look like for you?
Formulating The Plan <ul><li>While you are formulating your business plan, you should discuss it with a trusted advisor, a...
Entrepreneur <ul><li>As an entrepreneur, your ability to plan your course of action, and your understanding of your busine...
Evaluation: Why Real Estate? <ul><li>Procuring freedom    </li></ul><ul><li>Making a difference    </li></ul><ul><li>Educa...
What a plan will do for you: <ul><li>Your plan must document your vision/mission, set goals for your business, and develop...
Business Plan Worksheet <ul><li>Start with where you are right now.  Write down:  </li></ul><ul><li>Current business infor...
Make the “pie” bigger.  <ul><li>Your efforts will carry you.  Your success or failure is not dependent on market condition...
Creating Your Vision <ul><li>Create a vision for your business based solely on what  you  can do, what  you   can give, an...
Abundance Mentality <ul><li>What can you do in your business planning process to build and develop an abundance mentality?...
Business Plan 3 Goal and Objectives 1 Vision of the future 4 Marketing and  Production Strategies    2 Assessment of Curre...
You As A Business: <ul><li>Responsibilities </li></ul><ul><li>Complying with regulations   </li></ul><ul><li>Paying expens...
You As A Business: <ul><li>Freedoms/Benefits </li></ul><ul><li>Autonomy — You can have the freedom to be in charge of your...
Vision, Mission, Action! Steps you Take to implement Vision and Mission A clear picture  of your  purpose. What you stand ...
Vision vs. Mission <ul><li>Vision </li></ul><ul><li>Focuses on the future.  </li></ul><ul><li>Lays out what the future loo...
Vision vs. Mission <ul><li>Vision & </li></ul><ul><li>Mission </li></ul><ul><li>Effect </li></ul><ul><li>Everything </li><...
Value Proposition <ul><li>You are the only you out there… </li></ul><ul><ul><li>What talents, skills, expertise, and benef...
Value Proposition <ul><li>Analyzing your current position </li></ul><ul><ul><li>1. Strengths </li></ul></ul><ul><ul><li>2....
Strengths <ul><li>Strengths are those things about you and your business that bring value and advantage to your vision.  S...
Weaknesses <ul><li>Weaknesses are aspects that will need to be improved, changed, or remedied in order for you to achieve ...
Opportunities <ul><li>Opportunities are those external facts or situations that you may use as a guide to achieve your goa...
Threats <ul><li>Threats are those external factors that may require additional effort or mitigation in order to achieve yo...
Write it down: <ul><li>Complete your SWOT (Strengths, Weaknesses, Opportunities and Threats) Analysis.   </li></ul><ul><li...
S.M.A.R.T. Goal <ul><li>S pecific </li></ul><ul><ul><li>“ How and When?” </li></ul></ul><ul><li>M easurable </li></ul><ul>...
Write it down <ul><li>Create five SMART Goals that will enable you to begin the process of achieving your vision.   </li><...
Operational Strategies <ul><li>Overview </li></ul><ul><li>What type of business you will be creating?  How will your busin...
Your Company <ul><li>What type of Company do you want to have? </li></ul>Types Business Entities The type of business enti...
Your Company, Types <ul><li>Sole Proprietorship </li></ul><ul><li>Basic level business entity Unincorporated Independent c...
Your Company, Types <ul><li>General Partnership   </li></ul><ul><li>Business interests are held by a small number of partn...
Your Company, Types <ul><li>Limited Liability Company (LLC ) </li></ul><ul><li>Blends elements of partnerships and corpora...
Your Company, Types <ul><li>C-Corporation  </li></ul><ul><li>Formed as a separate legal entity from the shareholder(s). Ch...
Your Company, Types <ul><li>S-Corporation  </li></ul><ul><li>Similar to a C-Corporation except for the way in which the sh...
Marketing <ul><li>Marketing is all about promotion </li></ul><ul><ul><li>Promoting yourself.  </li></ul></ul><ul><ul><li>P...
Identifying Your Market <ul><li>What is your Sphere Of Influence (SOI)? </li></ul><ul><ul><li>Your sphere of influence is ...
Spheres Of Influence <ul><li>Friends </li></ul><ul><li>Relatives </li></ul><ul><li>Church members </li></ul><ul><li>School...
Get Organized <ul><li>Address Books:  Keep names, addresses, and phone numbers; as well as personal information, like birt...
Referrals <ul><li>Seek out referrals </li></ul><ul><ul><li>Real Estate is not about selling houses, it’s about building re...
Building Referral Business <ul><li>Building a business that generates referrals  </li></ul><ul><ul><li>Provide exceptional...
Revenue Generation <ul><li>Take into consideration the following items.  If you calculate using annual figures, then divid...
Time Management <ul><li>Time Management and Daily Planning </li></ul><ul><li>Time management is comprised of two major com...
Time Management <ul><li>Time management is comprised of two major components:  planning and productivity.  </li></ul><ul><...
Daily Activities <ul><li>Meet with at least two prospective buyers and one prospective seller.  </li></ul><ul><li>Update t...
Weekly Activities <ul><li>Preview five listings from your firm or other firms.  </li></ul><ul><li>Call someone from a stor...
Monthly Activities <ul><li>Create a neighborhood newsletter.   </li></ul><ul><li>Solicit local businesses to advertise in ...
Track your progress <ul><li>Business Plan Template: </li></ul><ul><ul><li>Each week, during your planning sessions, record...
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Business planning new agents rev 2011

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sBusiness Planning for new Agents. To be given with Business planning worksheets.

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  • As your own boss you must Each of your actions or inactions is your own sole responsibility.  So, let’s talk about your responsibilities as the boss of your own business. Each of your actions or inactions is your own sole responsibility.  So, let’s talk about your responsibilities as the boss of your own business.
  • Creating a vision enables you to have a focus, a destination, and a target.
  • Such elements make up your “Value Proposition”; meaning what you bring to the table that will give you a competitive advantage in the marketplace.  Simply put, your value proposition is what will attract and keep your clients, and generate a long-term successful business.
  • Specific:  When you write a goal, you must be as specific as possible, and include a great deal of detail and body.  Itemize who will be involved with your goal, how you will accomplish it, and by when.  You should also describe why the goal is important to you, because the motivations behind the goal will be just as important as the mechanics. Example: If your vision is to be a successful buyer’s agent, a goal might be stated as, “I will achieve an Accredited Buyers Representative (ABR) designation by December.”
  • No one expects you to be able to remember every phone number or address that comes across your desk in the process of transacting business.  Instead, use Contact Relationship Management Software (CRM) to store, organize, group, and recall your contact information.  Most CRM software consists of four basic features. Address Books: Keep names, addresses
  • Business planning new agents rev 2011

    1. 1. Business Planning What does this year look like for you?
    2. 2. Formulating The Plan <ul><li>While you are formulating your business plan, you should discuss it with a trusted advisor, a mentor, or your broker.  Ask your advisor to give you additional suggestions, insights, and opinions that will help you craft your plan for success. </li></ul>
    3. 3. Entrepreneur <ul><li>As an entrepreneur, your ability to plan your course of action, and your understanding of your business, will directly affect your success.  </li></ul><ul><li>We will look at your business in new ways and help determine the direction your business will take.  </li></ul><ul><li>A plan is a roadmap, or a guide, to enable you to achieve your goals and objectives. </li></ul><ul><li>You have entered into an occupation that requires specialized education, licensure, skill, and knowledge that enable you to provide a service that most individuals seek and require in our complex economy. </li></ul>
    4. 4. Evaluation: Why Real Estate? <ul><li>Procuring freedom  </li></ul><ul><li>Making a difference  </li></ul><ul><li>Educating and informing  </li></ul><ul><li>Providing income  </li></ul>
    5. 5. What a plan will do for you: <ul><li>Your plan must document your vision/mission, set goals for your business, and develop a clear picture about products you sell services you provide.  </li></ul><ul><li>Your plan will give structure to perform daily activities, market properties, find clients, and generate sales.  </li></ul><ul><li>You will know how much you have to work to build the level of income you seek and have a clear understanding of what it takes, both of time and in money, to achieve those objectives. </li></ul>
    6. 6. Business Plan Worksheet <ul><li>Start with where you are right now. Write down: </li></ul><ul><li>Current business information.  </li></ul><ul><li>Reasons you got into the real estate business.  Be honest with yourself and document why you got into the business and what you wanted to get out of it when you began. </li></ul><ul><li>What currently is motivating you in your business.  What keep’s you going as a real estate professional? </li></ul>
    7. 7. Make the “pie” bigger. <ul><li>Your efforts will carry you.  Your success or failure is not dependent on market conditions or competitors.  In fact, your success does not mean that your competitors fail.  </li></ul><ul><li>Create a positive, ethical business environment and you affect others in the industry in a positive way, thereby increasing the industry as a whole.  In essence, you make the “pie” bigger. </li></ul>
    8. 8. Creating Your Vision <ul><li>Create a vision for your business based solely on what you can do, what you can give, and what you can contribute. </li></ul><ul><li>Commit to continuous improvement.  Develop the habits of continually learning and continually being a student of the business. </li></ul><ul><li>Treat everyone with integrity, honesty, and ethics. </li></ul><ul><li>Express gratitude for what you have and what you can contribute. </li></ul><ul><li>Help others.  The adage of, “what goes around comes around” is ever true.  </li></ul><ul><li>Write specific goals down in your business plan.  Have clear objectives of what you want to accomplish. </li></ul><ul><li>Develop a habit of self-discipline and develop your business plan based on your consistent efforts and contributions. </li></ul>
    9. 9. Abundance Mentality <ul><li>What can you do in your business planning process to build and develop an abundance mentality?  How will this help you in creating the business you desire? </li></ul><ul><li>Write it down </li></ul><ul><ul><li>Examples: </li></ul></ul><ul><ul><li>Build networks and find people willing to help you. </li></ul></ul><ul><ul><li>Reciprocate leads, meaning find leads for other professionals; in turn they will find leads for you. </li></ul></ul><ul><ul><li>Add value to your services. </li></ul></ul><ul><ul><li>Create new markets or new opportunities.  </li></ul></ul><ul><ul><li>Become an innovator. </li></ul></ul>
    10. 10. Business Plan 3 Goal and Objectives 1 Vision of the future 4 Marketing and Production Strategies  2 Assessment of Current Situation 5 Financial Forecasting and Operations  You are here! Business Plan
    11. 11. You As A Business: <ul><li>Responsibilities </li></ul><ul><li>Complying with regulations  </li></ul><ul><li>Paying expenses  </li></ul><ul><li>Generating a profit  </li></ul><ul><li>Retaining profits to provide for lean times  </li></ul><ul><li>Paying your taxes  </li></ul><ul><ul><li>http://www.irs.gov/businesses/small/index.html </li></ul></ul><ul><li>Planning for Retirement  </li></ul><ul><ul><li>http://www.smsmallbiz.com/benefits/Tax-Free_Retirement_Accounts_for_the_Self-Employed.html </li></ul></ul>
    12. 12. You As A Business: <ul><li>Freedoms/Benefits </li></ul><ul><li>Autonomy — You can have the freedom to be in charge of your own success.  </li></ul><ul><li>Flexibility of hours — You can work when you want to. </li></ul><ul><li>Creation of your own vision — You can help others and create something out of nothing, which serves to generate self esteem and personal satisfaction. </li></ul><ul><li>Income potential — You can make as much money as your efforts and decisions dictate. </li></ul>
    13. 13. Vision, Mission, Action! Steps you Take to implement Vision and Mission A clear picture of your purpose. What you stand for. How you will achieve your destination. A clear picture of your future: Outcomes you expect to achieve. Targets or objectives. Definition of your destination Vision Mission Action
    14. 14. Vision vs. Mission <ul><li>Vision </li></ul><ul><li>Focuses on the future. </li></ul><ul><li>Lays out what the future looks like for you and your organization. </li></ul><ul><li>Defines what your future results, achievements, and successes will be. </li></ul><ul><li>Defines purpose. </li></ul><ul><li>What do I want to achieve? </li></ul><ul><li>What do I want to become over time? </li></ul><ul><li>How will others see me in the future? </li></ul><ul><li>What will be my reputation? </li></ul><ul><li>Is communicated in clear and unambiguous terms. </li></ul><ul><li>Is positive and inspiring. </li></ul><ul><li>Mission </li></ul><ul><li>Focuses on the present. </li></ul><ul><li>  Explains what you and your organization stands for today.  </li></ul><ul><li>Defines what your purpose, processes, and performances are </li></ul><ul><li>What do I do? </li></ul><ul><li>What do I stand for? </li></ul><ul><li>How do I conduct business? </li></ul><ul><li>How do I treat customers, clients? </li></ul><ul><li>How will I accomplish my vision? </li></ul><ul><li>Contains purpose and values </li></ul><ul><li>Statements of being </li></ul><ul><li>Statements of responsibilities to clients and community </li></ul>Structure Purpose Function Time
    15. 15. Vision vs. Mission <ul><li>Vision & </li></ul><ul><li>Mission </li></ul><ul><li>Effect </li></ul><ul><li>Everything </li></ul>
    16. 16. Value Proposition <ul><li>You are the only you out there… </li></ul><ul><ul><li>What talents, skills, expertise, and benefits do you bring to your business?  </li></ul></ul><ul><ul><li>What about your business will give value to your clients and customers?  </li></ul></ul><ul><ul><li>What are the weaknesses you must overcome?  </li></ul></ul><ul><ul><li>What obstacles might get in your way? </li></ul></ul>
    17. 17. Value Proposition <ul><li>Analyzing your current position </li></ul><ul><ul><li>1. Strengths </li></ul></ul><ul><ul><li>2. Weaknesses </li></ul></ul><ul><ul><li>3. Opportunities </li></ul></ul><ul><ul><li>4. Threats </li></ul></ul>
    18. 18. Strengths <ul><li>Strengths are those things about you and your business that bring value and advantage to your vision.  Strengths may be your own personal attributes or those of your teammates or partners, resources you have available, or capabilities you may use.  Understanding your strengths will allow you to set goals that will leverage your advantages and improve upon your strengths. </li></ul><ul><li>What are the strengths you bring to your career? </li></ul><ul><li>What are your personal capabilities that make you an exceptional real estate professional? </li></ul><ul><li>What are your competitive advantages? </li></ul><ul><li>What is unique about you that will attract and keep clients? </li></ul><ul><li>What education and training do you bring to the table?  What designations do you have?  What licenses do you have? </li></ul><ul><li>What services will you provide that will add value to your clients? </li></ul><ul><li>What resources do you bring to your business? (Capital and financial reserves?  Client lists? ) </li></ul><ul><li>What skills are you really good at?  (Listings? Buyer representation? Networking?) </li></ul><ul><li>What technological resources do you currently have that will be an advantage for you? </li></ul>
    19. 19. Weaknesses <ul><li>Weaknesses are aspects that will need to be improved, changed, or remedied in order for you to achieve your vision.  Being realistic and honest with yourself in the assessment of your weaknesses will allow you to see your current situation in a true light.  This will allow you to set goals that will be achievable.  With dedication, many times you can turn weaknesses into strengths. </li></ul><ul><li>Where are the gaps in your personal capabilities or competencies? </li></ul><ul><li>What about your business would be a disadvantage? </li></ul><ul><li>What are your personal vulnerabilities? </li></ul><ul><li>What skills and knowledge are you lacking that keep you from obtaining your vision? </li></ul><ul><li>What additional licenses or education do you need? (Broker’s license?) </li></ul><ul><li>What resources do you lack that would be required to attain your vision? (Capital and financial reserves? Technological resources?) </li></ul><ul><li>What business resource do you lack?  (Client lists? Large network?) </li></ul>
    20. 20. Opportunities <ul><li>Opportunities are those external facts or situations that you may use as a guide to achieve your goals.  It takes research and experience to recognize the potential all around you.  When you see opportunities, you must be able to optimize your strengths to achieve success. </li></ul><ul><li>What market potential do you have? </li></ul><ul><li>What areas in your market are ripe for development? </li></ul><ul><li>What areas in your market are currently being underserved? </li></ul><ul><li>What technological advancements could you use to give yourself a competitive advantage? </li></ul><ul><li>What new markets are available? </li></ul><ul><li>What business ideas do you have that will jumpstart or improve your business? </li></ul><ul><li>What innovations do you have? </li></ul><ul><li>What partnerships or connections do you have that would be an advantage? </li></ul>
    21. 21. Threats <ul><li>Threats are those external factors that may require additional effort or mitigation in order to achieve your vision.  By identifying such items in advance (as best as possible), you may chart your course around them or know how to counter them when you are faced by them.  </li></ul><ul><li>What are the current market and economic conditions in your area? </li></ul><ul><li>What competitive pressures do you face in your market area? </li></ul><ul><li>What negative publicity or impressions must you overcome? </li></ul><ul><li>What are the ethical standards you must follow? (i.e. the NAR Code of Ethics, etc.) </li></ul><ul><li>Don’t get hung up by the word “threat.”  These factors often are just the natural restrictions and regulations of the real estate business.  For example, compliance with Federal and state regulatory requirements may be listed here, but are required for everyone in order to have a fair business environment and allow for the protection of consumers.  (Such as fair housing protections, agency disclosures, property disclosures, and more.) </li></ul><ul><li>Honest self analysis will help you determine your course and allow you to construct a plan that is workable for you. </li></ul>
    22. 22. Write it down: <ul><li>Complete your SWOT (Strengths, Weaknesses, Opportunities and Threats) Analysis.  </li></ul><ul><li>What are yours? </li></ul>
    23. 23. S.M.A.R.T. Goal <ul><li>S pecific </li></ul><ul><ul><li>“ How and When?” </li></ul></ul><ul><li>M easurable </li></ul><ul><ul><li>ability to measure whether you have achieved the desired results or not.  Such measurements must be objective and concrete: be able to track results </li></ul></ul><ul><li>A ttainable </li></ul><ul><ul><li>Set your long term goals high, but create a path that will allow you to attain your goals in a timeframe that works for you. </li></ul></ul><ul><li>R ealistic </li></ul><ul><ul><li>Based on Strengths and weaknesses </li></ul></ul><ul><li>T imely </li></ul><ul><ul><li>Must have a deadline </li></ul></ul>
    24. 24. Write it down <ul><li>Create five SMART Goals that will enable you to begin the process of achieving your vision.  </li></ul><ul><li>Examples: </li></ul><ul><li>“ By the end of the year, I will have closed 60 residential sales and 3 commercial sales.” </li></ul><ul><li>“ By the end of the month, I will have added 50 new contacts to my prospective client list.” </li></ul><ul><li>“ By August, I will have completed all of the educational classes I need and will have passed the test necessary to acquire my broker’s license.” </li></ul>
    25. 25. Operational Strategies <ul><li>Overview </li></ul><ul><li>What type of business you will be creating?  How will your business be organized and structured?  What will you do? </li></ul><ul><li>The first section of your business plan should be an overview of your operational strategies and should include: </li></ul><ul><li>Background information about you.  (Where did you come from?). </li></ul><ul><li>A written mission statement. </li></ul><ul><li>A description of your services (general business activities). </li></ul><ul><li>The key values that will drive your business. </li></ul><ul><li>The type of business entity that you will establish (sole proprietorship, general partnership, limited partnership, Limited Liability Corporation, S Corporation, or C Corporation). </li></ul><ul><li>Your value proposition. (What will set you apart from your competitors and what will give you a competitive advantage?) </li></ul><ul><li>A description of your services to be offered. </li></ul>
    26. 26. Your Company <ul><li>What type of Company do you want to have? </li></ul>Types Business Entities The type of business entity you create will vary based on your goals and objectives.  You should always consult with proper legal counsel and tax advisors to determine which type is right for you.  The following descriptions come from several sources:
    27. 27. Your Company, Types <ul><li>Sole Proprietorship </li></ul><ul><li>Basic level business entity Unincorporated Independent contractor A single person (or married couple) holds the entire ownership of the business and bears all of the liability risks. Taxable profits are passed through to proprietors and reported on their personal income tax returns. </li></ul>
    28. 28. Your Company, Types <ul><li>General Partnership </li></ul><ul><li>Business interests are held by a small number of partners. All partners share in the liability risks. Partners distribute profits and losses according to their percentage of ownership. Taxable profits pass through to partners and are reported on their own individual income tax returns. </li></ul>
    29. 29. Your Company, Types <ul><li>Limited Liability Company (LLC ) </li></ul><ul><li>Blends elements of partnerships and corporations. Function as a legal business entity registered with the state, but considered “unincorporated.” Considered a separate entity, to reduce liability to the individual owners. Each member is taxed individually, like a partnership.   </li></ul>
    30. 30. Your Company, Types <ul><li>C-Corporation </li></ul><ul><li>Formed as a separate legal entity from the shareholder(s). Chartered with a particular state. Holds legal rights independent of shareholders. Liability for the actions of the corporations is generally not passed through to the shareholders. Ownership and the holding of shares in the corporation are transferrable to others. Managed by officers and generally a board of directors. Pays tax on taxable profits. </li></ul>
    31. 31. Your Company, Types <ul><li>S-Corporation </li></ul><ul><li>Similar to a C-Corporation except for the way in which the shareholders are taxed on profits and distributions of income. Taxable profits are passed through to shareholders and are reported on their individual tax returns.  Shareholders may receive distributions of profits. </li></ul>
    32. 32. Marketing <ul><li>Marketing is all about promotion </li></ul><ul><ul><li>Promoting yourself. </li></ul></ul><ul><ul><li>Promoting your services. </li></ul></ul><ul><ul><li>Promoting your properties. </li></ul></ul><ul><ul><li>Promoting your expertise. </li></ul></ul><ul><ul><li>Promoting your business. </li></ul></ul>
    33. 33. Identifying Your Market <ul><li>What is your Sphere Of Influence (SOI)? </li></ul><ul><ul><li>Your sphere of influence is one of the best places for you to prospect. These people are the easiest to talk to and the least threatening for you to contact. They are already your friends or acquaintances, people you know through other avenues of your life. </li></ul></ul>
    34. 34. Spheres Of Influence <ul><li>Friends </li></ul><ul><li>Relatives </li></ul><ul><li>Church members </li></ul><ul><li>School </li></ul><ul><li>Clubs </li></ul><ul><li>Political Organizations </li></ul><ul><li>Home Owner’s Association in your sub-division </li></ul><ul><li>Girl/Boy Scouts, soccer, basketball, dance or any other activity that you or your children participate in </li></ul><ul><li>Networking groups (insurance, car salesman, financial planners, lenders) or (facebook, twitter, myspace etc) </li></ul><ul><li>Spouses co-workers </li></ul>
    35. 35. Get Organized <ul><li>Address Books: Keep names, addresses, and phone numbers; as well as personal information, like birthdates and names of family members.  Keep track of who referred the contact to you and what services you have provided to them.  </li></ul><ul><li>Organizing Tools: Organize contacts into categories such as by groups, by associations, or by market segments.  This will allow you to track marketing results by those categories. </li></ul><ul><li>Communication Tools:  Keep track of your clients by using the communication tools to send out automated e-mail campaigns, form letters, newsletters, and other types of communications. </li></ul><ul><li>Tracking Tools:  what tools can help you track your business? </li></ul>
    36. 36. Referrals <ul><li>Seek out referrals </li></ul><ul><ul><li>Real Estate is not about selling houses, it’s about building relationships. </li></ul></ul><ul><ul><li>Your primary marketing strategy must be the process of generating a solid referral stream.  You may be thinking that this is done by asking everyone for referrals </li></ul></ul><ul><ul><li>Build the relationship and they will volunteer the referrals </li></ul></ul><ul><ul><li>Be grateful/acknowledge when you get a referral right away! </li></ul></ul>
    37. 37. Building Referral Business <ul><li>Building a business that generates referrals </li></ul><ul><ul><li>Provide exceptional service. </li></ul></ul><ul><ul><li>Go beyond the expected. </li></ul></ul><ul><ul><li>Continue relationships after the closings of sales. </li></ul></ul><ul><ul><li>Be consistent </li></ul></ul><ul><ul><li>Volunteer in the community. </li></ul></ul><ul><ul><li>Thank referral sources </li></ul></ul><ul><ul><li>Refer others </li></ul></ul>
    38. 38. Revenue Generation <ul><li>Take into consideration the following items.  If you calculate using annual figures, then divide by 12 to calculate monthly figures. </li></ul><ul><li>Average sales price in your market:  Go back into your plan and determine the average sale price of properties in your chosen market.  </li></ul><ul><li>Your commission structure (firm and personal):   You need to know the percentage of the sale price that you will commonly receive as a commission, both at a firm level and for you personally.  For example, if your firm usually receives 3% (or .03) of the sale price as its commission rate on a sale, and you personally share that commission at a 50/50 split (50% or .5) with your broker, then your personal commission percentage rate is 1.5% (3% x 50% or .015). </li></ul><ul><li>Now, use the following formulas to calculate your productivity requirement. </li></ul><ul><li>Average revenue per transaction:  Multiply the average sale price in your market by your firm commission percentage rate and then your personal commission split rate.   This formula will estimate what you can expect to earn for each closed transaction you produce.  For example, $200,000 X 1.5% (or .015) X 50% (or .50) = $1,500.00.   </li></ul><ul><li>Multiply the average revenue per transaction times the number of the average closed transactions you expect to produce.  This will tell you how much you can expect to make per month/year if you close sales at your target sales frequency.  You should make these calculations both for your firm and for you personally. </li></ul>
    39. 39. Time Management <ul><li>Time Management and Daily Planning </li></ul><ul><li>Time management is comprised of two major components:  planning and productivity.  </li></ul>
    40. 40. Time Management <ul><li>Time management is comprised of two major components:  planning and productivity.  </li></ul><ul><li>Planning is the weekly actions of writing down your schedules, to-do lists, and expected activities for the coming week or month.  All the planning in the world will not do you any good unless you perform the activities that will lead to results.  The best of intentions are not rewarded unless you follow through with the productivity necessary to close transactions. </li></ul><ul><li>Productivity is the daily actions you do in order to generate business; such as phone calls, emails, showings, interviews, sales calls, and listing presentations, etc.  </li></ul><ul><li>Conduct your planning on a weekly basis.  </li></ul>
    41. 41. Daily Activities <ul><li>Meet with at least two prospective buyers and one prospective seller. </li></ul><ul><li>Update the MLS (learn to automate this process). </li></ul><ul><li>Follow up on yesterday’s leads. </li></ul><ul><li>Prospect for new leads; first from your sphere of influence, after you’ve gone through that list; call 10 people you’ve never met. </li></ul><ul><li>Make an appointment with a “For Sale by Owner” (FSBO) seller. </li></ul><ul><li>Complete tasks from existing appointments or transactions.   </li></ul>
    42. 42. Weekly Activities <ul><li>Preview five listings from your firm or other firms. </li></ul><ul><li>Call someone from a story in your local newspaper that made news; whether business, just married, or new child related.  Congratulate them on their achievement or event and find out if the changes to their lives may require your services. </li></ul><ul><li>Visit a business and ask to handle their relocation activities, or otherwise offer your assistance. </li></ul><ul><li>Learn about the current market inventory; focus on the market segments you want to work consistently. </li></ul><ul><li>Communicate with your market.  Send out at least 25 “Just Listed” post cards, “Just Sold” post cards, and/or open house invitations. </li></ul><ul><li>Attend at least one networking event and add at least five names to your prospect list from your networking activities. </li></ul><ul><li>Write one new blog entry (In your own blog or respond to someone else’s blog).   </li></ul>
    43. 43. Monthly Activities <ul><li>Create a neighborhood newsletter.  </li></ul><ul><li>Solicit local businesses to advertise in your newsletter publication (free initially) in exchange for the use of their site as a distribution point. </li></ul><ul><li>Find new marketing sources. </li></ul><ul><li>Review progress and activities with your advisor or mentor. </li></ul>
    44. 44. Track your progress <ul><li>Business Plan Template: </li></ul><ul><ul><li>Each week, during your planning sessions, record the results of the previous week, such as: </li></ul></ul><ul><ul><li>Number of phone calls to prospective clients. </li></ul></ul><ul><ul><li>Number of email correspondence. </li></ul></ul><ul><ul><li>Number of meetings with prospective sellers or buyers. </li></ul></ul><ul><ul><li>Number of listing appointments. </li></ul></ul><ul><ul><li>Number of properties shown to prospective buyers. </li></ul></ul><ul><ul><li>Number of listing agreements acquired. </li></ul></ul><ul><ul><li>Number of buyer brokerage agreements acquired. </li></ul></ul><ul><ul><li>Number of transactions closed. </li></ul></ul><ul><ul><li>Compare your numbers with your plan and determine if you are ahead or behind of your plan </li></ul></ul>

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