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 What does 2011 look like for you?
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.
As an entrepreneur, your ability to plan your course of action, and your understanding of your business, will directly affect your success.
We will look at your business in new ways and help determine the direction your business will take.
A plan is a roadmap, or a guide, to enable you to achieve your goals and objectives.
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.
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?
Write it down
Build networks and find people willing to help you.
Reciprocate leads, meaning find leads for other professionals; in turn they will find leads for you.
Add value to your services.
Create new markets or new opportunities.
Become an innovator.
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
Autonomy — You can have the freedom to be in charge of your own success.
Flexibility of hours — You can work when you want to.
Creation of your own vision — You can help others and create something out of nothing, which serves to generate self esteem and personal satisfaction.
Income potential — You can make as much money as your efforts and decisions dictate.
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
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.
What are the strengths you bring to your career?
What are your personal capabilities that make you an exceptional real estate professional?
What are your competitive advantages?
What is unique about you that will attract and keep clients?
What education and training do you bring to the table? What designations do you have? What licenses do you have?
What services will you provide that will add value to your clients?
What resources do you bring to your business? (Capital and financial reserves? Client lists? )
What skills are you really good at? (Listings? Buyer representation? Networking?)
What technological resources do you currently have that will be an advantage for you?
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.
Where are the gaps in your personal capabilities or competencies?
What about your business would be a disadvantage?
What are your personal vulnerabilities?
What skills and knowledge are you lacking that keep you from obtaining your vision?
What additional licenses or education do you need? (Broker’s license?)
What resources do you lack that would be required to attain your vision? (Capital and financial reserves? Technological resources?)
What business resource do you lack? (Client lists? Large network?)
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.
What market potential do you have?
What areas in your market are ripe for development?
What areas in your market are currently being underserved?
What technological advancements could you use to give yourself a competitive advantage?
What new markets are available?
What business ideas do you have that will jumpstart or improve your business?
What innovations do you have?
What partnerships or connections do you have that would be an advantage?
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.
What are the current market and economic conditions in your area?
What competitive pressures do you face in your market area?
What negative publicity or impressions must you overcome?
What are the ethical standards you must follow? (i.e. the NAR Code of Ethics, etc.)
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.)
Honest self analysis will help you determine your course and allow you to construct a plan that is workable for you.
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.
Past clients can be the gold mine of your real estate prospecting. If you have been in real estate for any length of time, and have sold anything, you have past customers/clients. These people can be a tremendous source of business for you. If you are a new agent, start now to keep these records.
Keep in touch with them.
They already know what a good job you did for them. They can be a great source of referrals for you. When you go to their closing, take them a “closing gift”. Be creative (potted plant, gift card to a restaurant, picture etc). The important thing is that they know you appreciate them and they will appreciate and remember you.
Immediately put them on your SOl list. Don’t forget Home Anniversary cards. These people shared an important event in their lives with you. Make sure that they remember you when they are ready to make their next move, or hear of anyone thinking of buying or selling.
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.
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.
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.
Tracking Tools: what tools can help you track your business?
In your Business Plan Worksheet, complete the following worksheet pages to determine the amount of monthly revenue you will need to produce in order to meet your budget.
Personal Budget Worksheet
Business Budget Worksheet
Marketing Expenses Worksheet
Once you have completed the three worksheets, use the Revenue Worksheet to determine how much monthly and annual revenue you will need to generate in order to meet your goals, including your desired profit margin.
Take into consideration the following items. If you calculate using annual figures, then divide by 12 to calculate monthly figures.
Average sales price in your market: Go back into your plan and determine the average sale price of properties in your chosen market.
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).
Now, use the following formulas to calculate your productivity requirement.
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.
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.
Time management is comprised of two major components: planning and productivity.
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.
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.
Preview five listings from your firm or other firms.
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.
Visit a business and ask to handle their relocation activities, or otherwise offer your assistance.
Learn about the current market inventory; focus on the market segments you want to work consistently.
Communicate with your market. Send out at least 25 “Just Listed” post cards, “Just Sold” post cards, and/or open house invitations.
Attend at least one networking event and add at least five names to your prospect list from your networking activities.
Write one new blog entry (In your own blog or respond to someone else’s blog).