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Coldwell Banker Elite Business Planning
Coldwell Banker Elite Business Planning
Coldwell Banker Elite Business Planning
Coldwell Banker Elite Business Planning
Coldwell Banker Elite Business Planning
Coldwell Banker Elite Business Planning
Coldwell Banker Elite Business Planning
Coldwell Banker Elite Business Planning
Coldwell Banker Elite Business Planning
Coldwell Banker Elite Business Planning
Coldwell Banker Elite Business Planning
Coldwell Banker Elite Business Planning
Coldwell Banker Elite Business Planning
Coldwell Banker Elite Business Planning
Coldwell Banker Elite Business Planning
Coldwell Banker Elite Business Planning
Coldwell Banker Elite Business Planning
Coldwell Banker Elite Business Planning
Coldwell Banker Elite Business Planning
Coldwell Banker Elite Business Planning
Coldwell Banker Elite Business Planning
Coldwell Banker Elite Business Planning
Coldwell Banker Elite Business Planning
Coldwell Banker Elite Business Planning
Coldwell Banker Elite Business Planning
Coldwell Banker Elite Business Planning
Coldwell Banker Elite Business Planning
Coldwell Banker Elite Business Planning
Coldwell Banker Elite Business Planning
Coldwell Banker Elite Business Planning
Coldwell Banker Elite Business Planning
Coldwell Banker Elite Business Planning
Coldwell Banker Elite Business Planning
Coldwell Banker Elite Business Planning
Coldwell Banker Elite Business Planning
Coldwell Banker Elite Business Planning
Coldwell Banker Elite Business Planning
Coldwell Banker Elite Business Planning
Coldwell Banker Elite Business Planning
Coldwell Banker Elite Business Planning
Coldwell Banker Elite Business Planning
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Coldwell Banker Elite Business Planning

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The presentation is for Coldwell Banker Elite agents in Fredericksburg Virginia. Each agent is given the opportunity to develop their career plan and budget to encourage their success. For more …

The presentation is for Coldwell Banker Elite agents in Fredericksburg Virginia. Each agent is given the opportunity to develop their career plan and budget to encourage their success. For more information email Careers@ColdwellBankerElite.com

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  • 1. MasterYourPlan Real Estate | Business Planning Matthew Rathbun | Director of Professional Development
  • 2. So...Why a Business Plan? Because I’m a Professional Focus | Planning | Budgeting | Accountability | Development
  • 3. You, Incorporated You’re the: • CEO • CFO • Marketing Director • IT Staff • Research Analysis • Administration WouldYou Hire and KeepYou?
  • 4. Broker Commission Example $250,000 Home Sales Price 2.5% Commission to the Buyer Agent (Just an Example) 2.5% of $250,000 = $6, 250 $6,250 split 50% with Broker (Splits are Negotiable) = $3,125
  • 5. Personal Commission Breakdowns $3125 (Gross brought over from last slide) -$187 6% Franchise Fee $2938 -$588 20% for Taxes $2350 -$235 10% Business Savings $2115 -$846 40% Back into Business Budget $1269 = Personal Net Income (from sale of $250,000 home) $3125 -$187 $2938 -$588 $2350 -$235 $2115 -$846 $1269
  • 6. The median net income of REALTORS®, after accounting for taxes and expenses, was $18,200 in 2009. Based on our $250,00 sales price example, an agent would need to sell 18.5 homes per year to meet the national median in income 60% of REALTORS® Sold NOTHING in the last year
  • 7. Annual Income? 40 hours x 52 weeks = 2080 hours Desired Income ÷ 2080 Hours = Hourly Value Example: $100,000 ÷ 2080 = $48 per Hour
  • 8. Agent by Speciality 82% 4% 4% 10%Residential Commercial Prop. Manage. Other
  • 9. Agents Likely to Stay in Business 0 20 40 60 80 73 20 7 Very Certain Somewhat Certain Not Certain
  • 10. Mission •Your “Now” • Broad Goal •The “How” Vision •Your “Future” • FutureView •WhereYou Want To Be
  • 11. Example Mission Statement To have a foundation of constant growth and improvement so that we may empower our clients to achieve their real estate goals, all with the highest caliber of service and support.
  • 12. ExampleVision Statement To embrace and drive change, a community of realtors working with clients towards common goals. Delivering world class service and marketing while giving back to the communities we live in.
  • 13. The Written Plan
  • 14. A study at Yale University polled the graduating class of 1953 and discovered that 3% of the students practiced writing down their goals. A follow up twenty years later found that the 3% that had written down their goals were worth more financially than the other 97% combined! It also appeared that this 3% were more successful in other ways, too, such as having happy relationships. GOAL Setting
  • 15. Goal Setting •S = Specific •M = Measurable •A = Attainable •R = Realistic •T = Timely
  • 16. Taking Inventory
  • 17. Art of War k n o w t h e e n e m y a n d k n o w yourself, you need not fear the result of a hundred battles. If you know yourself but not the enemy, for every victory gained you will also suffer a defeat. If you know neither the enemy nor yourself, you will succumb in every battle. - Sun Tzu
  • 18. Where are you now? • Income • Expenses • Special Accounts • Tax Savings • Time Commitment • Assets • Sacrifices
  • 19. Establish The Need • Increase Business? • Decrease Costs? • Hire Staff? • Speciality Focus
  • 20. Productive Lead Sources REO RELO Blog Sign Calls Website Chamber
  • 21. 20% 5% 5% 10% 25% 5% 30% Blog Sign Call Chamber Trulia Website Direct Mail Facebook
  • 22. Accountability
  • 23. Money Hours of Work Sacrifices Relationships Health & Recreation Time Commitments Spiritual Needs
  • 24. Development REALTORS® with Designations make 60% more than those without
  • 25. Feasibility Brain Dump Mission /Vision Previous History Market Research Chosen Model Assests
  • 26. What are the most important costs inherent in our business model? Which Key Resources are most expensive? Which Key Activities are most expensive? Through which Channels do our Customer Segments want to be reached? How are we reaching them now? How are our Channels integrated? Which ones work best? Which ones are most cost-efficient? How are we integrating them with customer routines? For what value are our customers really willing to pay? For what do they currently pay? How are they currently paying? How would they prefer to pay? How much does each Revenue Stream contribute to overall revenues? For whom are we creating value? Who are our most important customers? What type of relationship does each of our Customer Segments expect us to establish and maintain with them? Which ones have we established? How are they integrated with the rest of our business model? How costly are they? What value do we deliver to the customer? Which one of our customer’s problems are we helping to solve? What bundles of products and services are we offering to each Customer Segment? Which customer needs are we satisfying? What Key Activities do our Value Propositions require? Our Distribution Channels? Customer Relationships? Revenue streams? Who are our Key Partners? Who are our key suppliers? Which Key Resources are we acquiring from partners? Which Key Activities do partners perform? What Key Resources do our Value Propositions require? Our Distribution Channels? Customer Relationships? Revenue Streams? Day Month Year No. This work is licensed under the Creative Commons Attribution-Share Alike 3.0 Unported License. To view a copy of this license, visit http://creativecommons.org/licenses/by-sa/3.0/ or send a letter to Creative Commons, 171 Second Street, Suite 300, San Francisco, California, 94105, USA. www.BusinessModelGeneration.com
  • 27. ! Personal Action Plan For the 12-Month Period From_________________________________To_____________________________ Sales Associate_____________________________________________________________ Personal and Confidential
  • 28. Personal Action Plan Use this valuable tool for career planning and goal setting. Understanding your career objectives will help us work as a team and achieve greater success. Situation Analysis Review your business strategies from the past 12 months. 1. Personal income $ ______________________ 2. Number of new listings _______________________ 3. Average list price $ _______________________ 4. Number of listings sold _______________________ 5. Average sales price of listings sold $ _______________________ 6. Number of buyer sales _______________________ 7. Average price of buyer sales $ _______________________ 8. Total number of sales _______________________ 9. Average sales price $ _______________________ 10.Total number of canceled sales _______________________ 11.Average number of prospecting hours each week _______________________ 12.Average number of hours worked each week _______________________ 13.List the sources of your last 10 clients _______________________ _______________________ _______________________ _______________________ _______________________ _______________________ _______________________ _______________________ _______________________ _______________________
  • 29. Major Objectives Goal setting and planning is vital to your success. Determine your future objectives and pinpoint areas for enhancement. Objective Projected Date Task Achieved To earn an annual personal income of $_______________ To work an average of _____ hours per week To work a maximum of _____ days a week and take _____ weekends off per month To spend ______% of my personal income on personal promotion Utilize contact management tools to organize prospecting strategies Respond to customer e-mails within one hour, whenever possible Purchase personal computer, laptop, PDA, etc Obtain a personal profile page on coldwellbanker.com Attend the International Business Conference Attend Coldwell Banker® and industry course catalog via cbu.com 1. 2. 3. Attend continuing education courses: 1. 2. 3. Other _____________________________________________________________________
  • 30. Five-Year Personal Income Plan How do you visualize your financial future? Put down your personal income goals for the next five years. YEAR INCOME _____________ $_____________________ _____________ $_____________________ _____________ $_____________________ _____________ $_____________________ _____________ $_____________________ Production Targets Define your goals for the coming year. 1. 12-month Personal Income Commitment $___________________________ 2. Total number of sales (open) ____________________________ 3. Total number of sales (closed) ____________________________ 4. Number of new listings ____________________________ 5. Number of listings sold (open) ____________________________ 6. Number of listings sold (closed) ____________________________ 7. Listings sold (personal income) *___________________________ 8. Buyers sold (open) ____________________________ 9. Buyers sold (closed) ____________________________ 10. Buyers sold (personal income) *___________________________ 11. Number of outgoing referrals (sent) ____________________________ 12. Number of referrals (closed) *___________________________ (*Should total 12-month Personal Income Commitment)
  • 31. Prospecting Plan Using the listing below, write down the percentage of income the activity would comprise, and the actual income you would receive. (For example, if your Personal Income Commitment is $100,000 and you feel that you will receive 10 percent of your income through phone prospecting, your actual income from these calls would be $10,000.) Prospecting Activity Percentage of Income Actual Income 1. Sphere of influence ________________ ________________ 2. Past clients/customers ________________ ________________ 3. For Sale By Owner ________________ ________________ 4. Expired listings ________________ ________________ 5. Phone prospecting ________________ ________________ 6. Open houses ________________ ________________ 7. Referrals ________________ ________________ 8. Other ________________ ________________ TOTAL 100% $________________ (Personal Income Commitment) Prospecting Plan Strategies How can you use the above items to achieve your prospecting objectives? Visit Coldwell Banker Works at www.coldwellbankerworks.com or reference your Brand Resource Guide for a complete overview of the systems and tools available to you. 1. _________________________________________________________________________ 2. _________________________________________________________________________ 3. _________________________________________________________________________ 4. _________________________________________________________________________ 5. _________________________________________________________________________ 6. _________________________________________________________________________ 7. _________________________________________________________________________ 8. _________________________________________________________________________
  • 32. Monthly Production Forecast Estimate by month how you will achieve your income through listings, referrals, etc. New Listings Listings Sold (Open) Buyers Sold (Open) Outgoing Referrals MONTH Target Actual Prior Year Target Actual Prior Year Target Actual Prior Year Target Actual Prior Year January February March April May June July August September October November December TOTAL Personal Commitment I have carefully considered my Personal Income Commitment, Production Targets and Prospecting Plan. Also, I agree to commit myself to the effort and hard work necessary to achieve these goals. ________________________________________________________________________________ Date Sales Associate Date Sales Manager
  • 33. 2010 Business Plan Mission Produce sufficient income to cover costs of living plus reduction of 15% of all overall debt and 10% of total income in Savings Vision To use our gifting and skillsets to be successful REALTORS®, while conducting business and to be in the top 10% of regional agents by production by year end. Goals • Establish 10% market share in target farms • Target Farms • ABC Subdivision • DEF Subdivision • List and sell a minimum of 25 homes or lots • Close 15 buyer side transactions • First page placement on at least 10 common searches via Google for Market Region. • Obtain CRS Designation by year end Income Projections 40 Transactions @ an average sales price of $200,000 and 2.5% commission = $5,000 per listing. 65% commission split = $3,250 x 40 transactions = $130,000. $130,000 less 10% for taxes = $13,000 $130,000 less 10% for charity = $13,000 $130,000 less 30% for business costs = $39,000 Real Estate Created Household Income: $65,000 Additional Income: $25,000 Retirement Generic Agent Example
  • 34. Total Projected Income: $90,000 Educational Goals Complete Bi-Annual Continuing Education CRS Designation Schedule Projections Weekly Days Off: Mondays and Thursdays Vacations: Two ($3,000 Budget) • 1 week in May - random location • 1 week in September - Beach House Goals Micro-Goals Macro-Goals $3,500 Reserves 15% Overall Debt Reduction $1,500 Christmas Fund Dental Work ($3,000) Digital Camera ($1350) Personal Insurance Weekly Activity with Kids ($1200) Weight Loss / Tone New Marketing Techniques to Implement • Doc-u-sign - $120 per year • eMail System - $30/month • Short Sale Solicitation Letters - $250 • Quarterly seminars - $300 Association Work Local - Grievance Ethics Dialogue Special Functions Civic - Chamber of Commerce
  • 35. Personal Real Estate Monthly $ Annual $ Monthly $ Annual $ Rent or Mortgage License Automobile Payment(s) MLS Dues and Fees Home Insurance Business Cards Food Phone or Cell Phone Electric Office Rent/Desk Fee Telephone Auto Expense Gas Computer/Internet Water/Sewer/Trash Marketing - Mailers Other Utilities Marketing - Web Site Auto Insurance Marketing - Pay Per Click Dish/Cable TV Marketing - Print Internet/DSL Marketing - Brochures Health Insurance Marketing - Other Medical Expense Marketing - Other Children school expense Organization Dues Clothing Office Supplies Entertainment Copy Expenses **Enter an expense Education Expenses **Enter an expense Client Entertainment/Gifts **Enter an expense **Enter an expense **Enter an expense **Enter an expense **Enter an expense **Enter an expense **Enter an expense **Enter an expense **Enter an expense **Enter an expense **Enter an expense **Enter an expense TOTALS -$ -$ -$ -$ Expenses
  • 36. Enter average transaction amount--> $200,000 Enter average transaction percent--> 2.75% * For 3%, enter .03, etc. Enter your split percentage-------------> 60.0% * For 55%, enter .55, etc. Your average commission per transaction is ----------> 3,300$ % of business in Spring 30% ** Enter 25% as .25, etc. % of business in Summer 40% % of business in Fall 20% % of business in Winter 10% ******Must equal 100% 100% Estimated number of transactions for the year----> 12 Your annual personal expenses are--> $0 Your annual business expenses are-> $0 Approximate monthly cash flow: January $3,960 February $3,960 March $3,960 April $5,280 May $5,280 June $5,280 July $2,640 August $2,640 September $2,640 October $1,320 November $1,320 December $1,320 Annual Cash Flow--------> 39600 Income Requirement
  • 37. Facebook.com/mattrathbun @mattrathbun matthew@realtor.com www.TheAgentTrainer.com YouTube.com/MattRathbun1

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