Business Planning Boot Camp

Crafting Your Business Plan — Success in any Market 1

A Story
Surely you have heard the story about the Harvard class of 1954, which was measured in two groups: those who made goals, and those who did not. The goal-oriented graduates were broken down into even more specific groups: those who made goals every now and then; on a yearly basis; and on a monthly, weekly, or daily basis. The individuals in the finest subsets ended up with more wealth, free time, and happiness than the others. The no-goal folks were left out in the cold!
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A Story
Well, it has happened again. A survey of salespeople found that 6 of 10 do not set outcome-based goals at all, and this group earns the least amount of all salespeople! 3 out of 10 set earnings goals, and, as in the Harvard study, this group of folks earns double the income of the no-goals group. Only 1 in 10 people sets specific goals but earns 3 times as much as those who set no goals at all. It is Harvard all over again!
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A Story
Moral:
Set goals. Review them constantly. Work toward them. That is how you will change your fortune and future.
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Why?
If you went into business for yourself and approached a bank for a business loan, your loan officer would want to see two things: 1) your income statement and 2) your business plan.
When you go into real estate sales, you are going into business for yourself, yet many salespeople have no clear goals or timeline for achieving them. Consistently, real estate professionals who have written business plans are more successful than those who do not.
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What is a business plan?
A document that outlines an organization’s current status and plans for several years into the future. The business plan generally projects future opportunities and maps the financial, operational, and marketing strategies that will enable the organization to achieve its goals.
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Before We Get Started … A few Words of Wisdom CLICK HERE FOR BUSINESS PLANNING ADVICE http://www.youtube.com/watch?v=ivFllc--IzM 7

Step 1: My Vision & Mission
Vision Statement :
This is the big picture. The word “vision” means the conception of an image. In a vision statement, you say where it is you want to go. Here is an example:
By the end of 2012, I will be the most successful agent in RE/MAX ABC Realty. I will lead in closed dollar volume and gross commissions earned.
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Mission Statement
The mission statement should flow directly from the vision statement. It is the implementation of the vision, and it outlines what must happen to realize that vision. It is a “how-we- will-get-there” guide that contains action words and adjectives.
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A good mission statement:
Motivates and inspires
Is easily understood and actionable
Has measurable, attainable goals
Is brief (three to four sentences)
Is simple, honest, and frank
Is fully believed
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A mission statement for the above vision statement might sound something like this:
To realize my vision, I will prospect weekly. I will nurture and care for my past clients. I will underpromise but overdeliver on all of my commitments.
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My Vision/Mission Statement is:
______________________________
______________________________
______________________________
______________________________
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My Vision & Mission PLANET FITNESS MISSION STATEMENT We at Planet Fitness are here to provide a unique environment in which anyone – and we mean anyone – can be comfortable. A diverse, Judgment-Free Zone® where a lasting, active lifestyle can be built. Our product is a tool, a means to an end; not a brand name or a mold-maker, but a tool that can be used by anyone. In the end, it’s all about you. As we evolve and educate ourselves, we will seek to perfect this safe, energetic environment, where everyone feels accepted and respected. We are not here to kiss your butt, only to kick it if that’s what you need. We need you, because face it, our planet wouldn’t be the same without you. You belong! 13

My Vision & Mission SAMPLE AGENT/TEAM MISSION STATEMENT The mission of my real estate team is to be the most successful real estate team in the Merrimack Valley and southern New Hampshire. My team and I incorporate proven, professional, state-of-the-art techniques for marketing, listing, and selling new and resale luxury homes, residential communities, condominiums, home sites, undeveloped land, and commercial and investment properties. I will maintain a full-time staff of well-trained real estate professionals who continuously strive to provide top-quality service for our customers. We will strive to be a creative, innovative, and people-oriented team providing individual opportunity, personal satisfaction, and rewarding challenges to all members of the team. 14

Step 2: My Core Values 15

Step 2: My Core Values
My Core Values Are:
______________________________
______________________________
______________________________
______________________________
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Step 3: The Past SITUATION ANALYSIS : To get where you want to go, you must understand where you have been. A. Financial / Business Review: 1. How many transactions did you do in the past year? ____________ 2. What were your gross commissions for the past year? ___________ 3. What is your average commission per sale? ________________ 4. How many of your clients were: Buyers? # _____ % _____ Sellers? # _____ % ______ (To calculate the percentages, divide the number of buyer or seller transactions by the total number of transactions completed.) 5. # of buyer agency contracts signed _____ 6. How many buyers did you lose, and why? ___________________________________________________ 17

Step 3: The Past 7. # of buyers sold _____ 8. Buyer conversion rate (divide buyers sold by total number of buyers you worked with) ______ % 9. # of listing presentations ______ 10. # of listings taken ______ 11. How many listings did you lose, and why? ______________________ 12, # of listings sold ______ 13. % of listing presentations vs. listings sold (divide the listings sold by the number of listing presentations) ______ % 14. % of listings sold ______ (divide listings sold by number of listings taken) 18

Step 3: The Past
Where do I get this information?
List of closings from your manager for the past 12 months
MLS
BrokerMetrics or other software your office uses
STARTING TODAY, WE WILL HAVE YOU DOCUMENT THIS INFORMATION ON EVERY CLOSING!
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Step 4: My Budget 20

Step 5: Know the Numbers Now let us examine these numbers a little more closely. 1. My gross commission goal for this year is $ _____________ . 2. I will need to do _______ transactions this year in order to achieve my goal. (Divide your commission goal by the average commission per sale.) 3. I will need to complete ______ transactions per month. 4. I will need to complete ______ transactions per week. 5. This year, I will need to sell and close ______ listings. (Multiply Line 2 by the percentage of sellers you worked with last year.) 21

Step 5: Know the Numbers 6. This year, given my history of winning at the listing table, I must make ______ listing presentations. (Divide Line 5 by the percentage of listing presentations vs. listings sold.) 7. I will need to make _____ listing presentations per month. 8. I will need to make _____ listing presentations per week. 9. This year, given my history of listings sold, I will need to take _____ listings. (Divide Line 5 by the percentage of listings taken vs. listings sold.) 22

Step 5: Know the Numbers 10. I will need to sell _____ listings per week. 11. Given my history of working with buyers, I will need to close _____ buyers. (Multiply the percentage of buyers you worked with last year by the total number of transactions you need to do this year.) 12. Given my buyer conversion rate last year, I will have to work with _____ buyers this year. (Divide Line 11 by your buyer conversion rate.) 23

Step 6: Where Do I Get My Business? B. Where Did My Business Come From? How did you originate your buyers and sellers in the past year? Buyer # Seller # Open Houses Sphere of Influence Referrals Past Clients Sign Calls Personal Web Site LeadStreet Curbside Connection Social Networking Site Call Rotation Roster Referral from RE/MAX Prestige Referral from outside agency Realtor.com Direct Mail Ad Calls Other ______________ 24

Step 7: Know Your Market

Market Review:

Do you know your market?
How many households are in your market area / farm area?

3. How many transactions took place last year in this area?

4. How many agents are you competing with in this area (actually doing business)?

5. What companies/agents are your biggest competitors?

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Step 7: Know Your Market Market Review: 6. What is your company’s market share vs. the competition?___________________________ 7. Do you know what your competition leverages to attract buyers and sellers?_____________ 8. What are the biggest impending changes or threats to your marketplace? _______________ 9. What are the emerging opportunities in your marketplace? ___________________________ 26

Step 7: Know Your Market 10. What three things will you do to improve your market knowledge, combat the competition, and take advantage of the emerging opportunities in your market? A) ______________________________________ B) ______________________________________ C) ______________________________________ Will you do them? _______ 27

Step 8: My Sellers 1. On average, how long do your listings take to sell? _____ 2. Is this above or below the areas average? _________ 3. Do you have a finely tuned listing presentation complete with marketing/action plan outlining your marketing, service, and communication plans? _______ 4. Do you provide your sellers with a service guarantee? _______ 5. Do you include in your listing presentations information about the power of RE/MAX and the exposure that it provides? _______ 6. Do you have a checklist for listing appointments? _______ 28

Step 8: My Sellers 7. Do you provide sellers with questions for interviewing other Realtors?_______ 8. Do you have a full e-marketing strategy to provide maximum exposure for listings?________ 9. Do you put all of your listings on Craigslist , Facebook , or other social networking sites? ________ 10. When you take a listing, do you register the address as its own domain name and then post that domain name on a sign rider with the for sale sign?________ 11. Do you enhance your listings on Realtor.com and RE/MAX.com ? _________ 12. How do you promote your open houses? _____________________________________ 29

Step 8: My Sellers 13. Do you advertise your open houses online/post them on REMAX.com? __________ 14. Do you provide web commercials, slideshows, and virtual tours for every listing? _______ If not, why not? _____________________________________ 15. Do you e-mail a web commercial of your listing to all of the top agents in your area? ________ If not, why not? _____________________________________ 16. Do you include testimonials from past sellers in your listing presentation? ________ If not, why not? _____________________________________ 17. What are the top three tools that you use to get the unfair advantage at the listing table? _____________________ ______________________________________________ 30

Step 8: My Sellers 18. Do you try to generate spin-off business around your listings?_____ How? ______________________________________________ ______________________________________________ 19. Do you survey your seller clients? ______ If not, why not? _____________________________________________ 20. Do you send handwritten thank-you notes to your sellers after the listing appointment, after a contract is negotiated, and after the sale? _______ 21. Do you do a “pop-by” with a gift after a sale? ______ 22. Do you ask your sellers for referrals? _____ 23. Do you have a database of past sellers? _____ 31

Step 8: My Sellers 24. What is your plan for keeping in touch with sellers after the sale and prospecting them for referrals? ________ ____________________________________________ 25. Are you consistent with these activities for every listing? _______ 26. What are three things you could do to increase the number of your listings, listing/sales ratio, and spin-off business for next year? A)____________________________________________ B)____________________________________________ C)____________________________________________ Will you do them? ______ 32

Step 8: My Sellers 27. What are three things that you should stop doing? A)____________________________________________ B)____________________________________________ C)____________________________________________ Will you stop doing them? _______ 33

Step 9: My Buyers 1. Do you have a buyer’s presentation complete with services outline, etc.? _______ 2. Do you include testimonials from past customers? ______ 3. Do you include information about the process of buying a home and the costs involved? ______ 4. Do you include a list of preferred ancillary service providers? _________ 5. Do you belong to an ancillary services networking community? _________ 6. Do you ask all of your buyer clients to sign a services contract? ________ 34

Step 9: My Buyers 7. Do you provide a service guarantee to buyers? ________ 8. Do you conduct a buyer consultation session for each buyer client? _______ 9. Do you provide a buyer CMA when a buyer is considering putting an offer on a property?__________ 10. Do you sign up all of your buyers to receive e-mail updates on new listings?________ 11. Do you send buyers handwritten notes after you first meet with them, after they have successfully negotiated an offer, after all contingencies have been removed, and after the closing?_______ 12. Do you send buyers handwritten notes of encouragement when their offer doesn’t go through? ______ 35

Step 9: My Buyers 13. Do you create a web commercial of the buyer’s new home and e-mail it to them?________ 14. Do you survey your buyers and ask for a testimonial? _____ If not, why not?___________________________ 15. Do you offer to create change-of-address cards for your buyers with their pictures on the front and a testimonial about your service on the back?______________ 16. Do you “pop by” your buyers in their new home and bring a small closing gift? _______ 17. Do you ask your buyers for referrals?____________ 18. Do you put all of your buyers in a database? _______ 36

Step 9: My Buyers 19. How do you keep in constant contact with your buyer after the sale. and how do you prospect for referrals? ______________________________________________ ______________________________________________ 20. What activities/campaigns were your best sources for new buyer clients?_______________________________ ______________________________________________ 21. Have you created a profile of the type of buyers you most enjoy working with? _____________ 22. How do you target-market that buyer group? _____________________________________ _____________________________________ 37

Step 9: My Buyers 23. What are three things you could do better to attract and close buyers for next year? A)______________________________________ B)______________________________________ C)______________________________________ Will you do them? _________ 24. What are three things that you should stop doing? A)______________________________________ B)______________________________________ C)______________________________________ Will you stop doing them? __________ 38

Step 10: Personal Marketing 1. How much money did you spend on personal promotion last year? ___________________ What did you do? ________________________________ Did you get the return you expected? ________ Did you create a personal brochure on Design Center? _____ 2. How much money did you spend on print advertising? ________________ Did you get the return you expected? ______ How much print advertising do you promise sellers in your listing presentation?_____________ 3. Do you advertise testimonials, client survey results or your service package? _______ If not, why not? _______ 39

Step 10: Personal Marketing 4. What are three things you could do to increase your success rate from your personal marketing, promotion, and advertising? A)______________________________________ B)______________________________________ C)______________________________________ Will you do them? ____________ 5. What are three things that you should stop doing? A)______________________________________ B)______________________________________ C)______________________________________ Will you stop doing them? _______ 40

Step 11: Prospecting 1. Do you schedule set time / time block to actively prospect for new business?____________ 2. How often do you prospect for new business? Daily___ Weekly___ Monthly___ Occasionally___ Are you consistent?____ Persistent?___ Determined?____ 3. What percentage of your time do you spend prospecting for new business?_________ Is it enough?_______ 4. Do you have short-term prospecting goals? _____ 5. Do you have long-term prospecting goals? _____ 41

Step 11: Prospecting 6. Which prospecting activities do you do most often? _______________________________________________ _______________________________________________ 7. Are you satisfied with the results? ______ 8. Which prospecting activities do you never do? ______________________________________________ Why? _________________________________________ 9. How do you prospect for FSBOs?___________________ ______________________________________________ 10. How do you prospect for Expireds?_________________ _____________________________________________ 11. Do you use specific scripts for prospecting? _____ 42

Step 11: Prospecting 12. Do you have a system for staying in touch with past clients and prospecting them for referrals?_____ How often?_____ What methods do you use?________________________ ______________________________________________ Do you get enough business from past clients? ______ 13. Do you have a system for staying in touch with and prospecting your Sphere of Influence? _______ How often?_____ What methods do you use?_______________________ _____________________________________________ Do you get enough business from your sphere? ______ 14. What percentage of your business last year came from past client referrals and sphere of influence?________ 43

Step 11: Prospecting 15. How will you prospect to attract clients from generations X & Y? _______________________________________ 16. How do you target minority groups? _______________ _____________________________________________ 17. What three things can you do to improve your success in prospecting for new business? A)______________________________________ B)______________________________________ C)______________________________________ Will you do them? _______ 44

Step 11: Prospecting 18. What are three things that you should stop doing? A)______________________________________ B)______________________________________ C)______________________________________ Will you stop doing them? _______ 45

Step 12: Technology 1. Are you computer proficient? _________ 2. Do you have a laptop computer and an air card? _______ 3. Do you have contact management software?_________ Do you use it?_____________ Presentation software? _____________ Other software? _____________ 4. Do you use e-mail and text for your business? ______ 5. Do you use a RE/MAX or personally branded e-mail address for business? _____________ 6. Do you use e-mail to prospect for new business? _______ What software do you use to send mass e-mails to top agents in the area, past clients, etc. ( TopProducer.com, ConstantContact.com, Delivra.com )? _____________ 46

Step 12: Technology 7. Do you have an electronic newsletter? ( RealtyTimes.com , Design Center ) _______ 8. Do you have a smartphone? ______ 9. Do you have a compelling personal website _______ What makes it compelling?_____________________ 10. Is it targeted to both buyers and sellers?_________ 11. Does your website have a niche?_______________ 12. Does it have buyer and seller testimonials?_________ 13. Does it have a lot of visitors?____ If not, why not? _______________________________________ 47

Step 12: Technology 14. Do you tell the world about your website? ______ How?___________________________________ 15. Is your web address on all of your marketing, including your for sale signs? ____________ 16. How quickly do you respond to Internet leads? ________ 17. What systems do you have for managing and incubating these Internet leads?____________________________ 18. Do you have a real estate blog? ( Realblogging.com , Blogger.com , Active Rain ) _________ 19. Do you utilize social networking in your business?______ How? _________________________________________ 20. Do your technology skills need improvement? ______ 48

Step 12: Technology 21. What three things could you do to improve your technology skills and the impact it gives you on the real estate industry? A)______________________________________ B)______________________________________ C)______________________________________ Will you do them? _______ 22. What are three things that you should stop doing? A)______________________________________ B)______________________________________ C)______________________________________ Will you stop doing them? _______ 49

Step 12: General & Educational 1. What skills, upgrading, and educational opportunities did you take last year? _______________________________ 2. How many RE/MAX events did you attend last year? ____ 3. What designations did you achieve?__________________ _______________________ 3. What professional educational/growth books did you read last year? ______________________________________ 4. Have you recently upgraded your communication and/or human relations skills? ___________________________ 5. How do you keep up with industry changes and innovations? ( RealtyTimes.com, RISMedia.com, Inmannews.com ) _______________________ 50

Step 12: General & Educational 6. How do you keep up with local industry laws and regulations? ___________________________________ 7. Are you active with your local Board of Realtors? ______ 8. How do you give back to your community? ____________ ______________________________________________ 9. Did you set written goals last year? ______ Did you achieve them? ________ 10. Did you work to a written schedule last year? ________ 11. What was your biggest business challenge in the past year? _______________________________________ How did you overcome it?_____________________ 51

Step 12: General & Educational 12. What three things could you do to improve your general situation (market knowledge, financing, education, goal setting, etc.)? A)___________________________________________ B)___________________________________________ C)___________________________________________ Will you do them? ______ 9. What are three things that you should stop doing? A)___________________________________________ B)___________________________________________ C)___________________________________________ Will you stop doing them? _______ 52

Step 13: Overview My major strengths are: 1)__________________________________________ 2)__________________________________________ 3)__________________________________________ 4)__________________________________________ My major weaknesses are: 1)__________________________________________ 2)__________________________________________ 3)__________________________________________ 4)__________________________________________ My greatest opportunities are: 1)__________________________________________ 2)__________________________________________ 3)__________________________________________ 4)__________________________________________ 53

Step 13: Overview Things I can do to improve are: 1)__________________________________________ 2)__________________________________________ 3)__________________________________________ 4)__________________________________________ 5)__________________________________________ Things I need to stop doing are: 1)__________________________________________ 2)__________________________________________ 3)__________________________________________ 4)__________________________________________ 5)__________________________________________ 54

Step 13: Overview Remember, work to your strengths ● improve your weaknesses ● take advantage of your opportunities! And, work to your plan every day! 55

Step 14: My Objectives List all of your objectives for the next twelve months. Then prioritize them . 1. 2. 3. 4. 5. 6. 56

Step 15: Monitor and Review Review your action plan monthly! If necessary, amend your plan and get on with it! A. THE BIG PICTURE Does my stated focus match the results of my activities and my overall business objectives for the year? _________ Do I need to make any adjustments? ______ If so, they are: ______________________________________________________________________________________________________________________________ B. ACTION PLAN Have I implemented all of the strategies on my Action Plan? ____ The adjustments I need to make are: ______________________________________ ______________________________________ ______________________________________ 57

Step 15: Monitor and Review C. MANAGEMENT BY THE NUMBERS My analysis of my activities/results to date: __________________ My analysis of my expenses/profitability to date: _______________ Adjustments I need to make: ______________________________________________ ______________________________________________ ______________________________________________ ______________________________________________ 58

Step 15: Monitor and Review Quarterly Review Seller contracts completed: Buyer contracts completed: Personal earnings: 1 st Q 2 nd Q 3 rd Q 4 th Q Goal/Actual Goal/Actual Goal/Actual Goal/Actual First Quarter: YTD: Second Quarter: YTD: Third Quarter: YTD: Fourth Quarter: Total for Year: 59

Step 15: Monitor and Review How well you monitor your financial performance will directly affect your ability to successfully implement your business plan. Do not take this step lightly! Remember that successful businesspeople constantly monitor their progress and strive for maximum results! 60

Step 16: Track Leads Daily 61

Step 17: Prospect Daily 62

Thank You for Your Time! 62

Business Planning Boot Camp

by Stacey Alcorn

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