This document provides guidance for experienced real estate sales professionals to develop a business plan. It outlines a 5-step planning process: 1) situational analysis to assess strengths/weaknesses, 2) determine objectives, 3) develop strategies, 4) develop tactics, and 5) measure results. Worksheets are provided to track sales statistics, expenses, sources of business, and develop SMART objectives aligned with strategies and tactics. Regular measurement against goals is emphasized for plan success.
1. Plan ForPlan For
Your SuccessYour Success
For The Experienced Real EstateFor The Experienced Real Estate
Sales ProfessionalSales Professional
Participant WorkbookParticipant Workbook
3. IntroductionIntroduction
GUIDE TO BUSINESS PLANNING
Studies have shown that those engaged in business planning consistently outperform those
with no business planning. While planning does not ensure success in accomplishing goals,
it is rare to succeed solely by luck or circumstance.
This planning guide is designed to take an “experienced real estate sales professional”
through the business planning process. The course will help you define where you are
today and how in the coming months you can reach your chosen goals.
TABLE OF CONTENTS
Steps In The Planning Process..............................................................................................4
Step I: Situational Analysis ....................................................................................................5
My Sales and Production Statistics........................................................................................7
My Recent Sources Of Business............................................................................................8
My Personal Strengths & Weakness......................................................................................9
Business Expenses: Past 12 Months...................................................................................11
Step II: Determine Your Objectives......................................................................................12
Step III: Develop Strategies .................................................................................................13
Step IV: Develop Tactics .....................................................................................................14
Plan Worksheet ...................................................................................................................15
Step V: Measuring My Plan Results.....................................................................................16
My Personal
Business Plan.......................................................................................................................17
Situational Analysis ..............................................................................................................18
My Sales and Production Statistics......................................................................................20
My Recent Sources Of Business..........................................................................................21
My Personal Strengths & Weakness....................................................................................22
Business Expenses: Past 12 Months...................................................................................24
Plan Worksheet....................................................................................................................25
Measuring My Plan Results..................................................................................................26
Plan For Your Success 3 6.1.07
4. Steps In The Planning ProcessSteps In The Planning Process
STEP I: SITUATIONAL ANALYSIS - “WHERE YOU ARE TODAY”
Business planning provides you with guidelines for making sound business decisions. The
first step in developing your plan begins with a written analysis of you and your
marketplace… “where you currently are” in terms of your business goals.
STEP II: OBJECTIVES - “WHAT YOU HOPE TO ACHIEVE”
Objectives represent the desired outcome you hope to attain within a given period of time.
They answer the question, "What do I hope to achieve?"
The objectives of a business plan provide direction and serve as standards for evaluating
performance. Well-written objectives are specific, measurable, attainable, realistic, and
time-oriented (SMART).
(S)pecific
(M)easurable
(A)ttainable
(R)ealistic
(T)ime-oriented
STEP III: STRATEGIES - “HOW YOU WILL ACCOMPLISH YOUR
OBJECTIVES”
Strategies outline “how to accomplish your objectives.” They are broad activities that are
within your control.
Strategies are not to be confused with goals. To differentiate between a strategy and goal,
ask yourself…can I control this activity? If the answer is yes, then it is a strategy.
STEP IV: TACTICS - “HOW TO MAKE YOUR STRATEGIES HAPPEN”
Tactics are specific action steps for making each strategy happen. They include “who is
responsible for what and when” and the expense involved.
STEP V: PLAN MEASUREMENT - “EVALUATION OF YOUR PLAN RESULTS”
Essential to the business planning process is the measurement of your plan’s success. A
business plan should be revisited at least every 90 days. If your objectives and strategies
are not working - change them!
Plan For Your Success 4 6.1.07
5. Step I: Situational AnalysisStep I: Situational Analysis
““Where I Am Today”Where I Am Today”
ANALYZING MY BUSINESS
1. I currently have a business plan: yes; no
2. My current business approach is: just me; me and a personal assistant; me and
a buyer broker; my team: other: ________________________________
What’s working well: ________________________________________________
What’s not working well: _____________________________________________
3. What are the strengths of your business approach: ______________________________
_______________________________________________________________________
4. What are the weaknesses of your business approach: ___________________________
_______________________________________________________________________
5. I am managing my business well: yes; no Explain: __________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
6. To what do you credit your past real estate success: _____________________________
_______________________________________________________________________
BUSINESS GROWTH
1. My strategy for building my business is working: yes; no Explain: ______________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
2. My greatest challenge over the last 12 months has been: _________________________
_______________________________________________________________________
_______________________________________________________________________
3. What could you have done over the last 12 months to improve your business? ________
Plan For Your Success 5 6.1.07
6. _______________________________________________________________________
4. My greatest opportunities over the next 12 months: ______________________________
_______________________________________________________________________
_______________________________________________________________________
5. Threats to my business over the next 12 months:
_______________________________________________________________________
Plan For Your Success 6 6.1.07
7. My Sales and Production StatisticsMy Sales and Production Statistics
Period: _______________________ Sources: MLS, office and personal records.
COMMISSION INCOME:
Commission Income $_______________________
Transactions/Sides # _______________________
Average Commission $ _______________________
LISTINGS:
# of Listings Taken #_______________________
# of Listings Sold #_______________________
Percentage of Listings that Sold % ______________________
Average List Price $_______________________
Average Sale Price $_______________________
Average Sale to List Price Ratio % ______________________
BUYER CONTROLLED SALES:
Buyer Controlled Sales/Closed #_______________________
Average Sale Price $_______________________
REFERRALS:
Outbound referrals sent #_______________________
SALES AND PRODUCTION ANALYSIS
Can your percentage of listings “taken“ to “sold” be improved? Yes, No
Is your sale to list price ratio in line with market standards? Yes, No
Is your average listing taken/sold below the office average or your goal? Yes, No
What was your estimated contracts written to contracts closed ratio? ______ %
Why?
Plan For Your Success 7 6.1.07
8. My Recent Sources Of BusinessMy Recent Sources Of Business
Determine the source of business for your last 10 listings taken and 10 buyer controlled
sales starting with the most recent. (past customer, relative, farming, FSBO, expired, etc.).
LISTINGS TAKEN:
Property or Name Source of Business
_________________________________ ___________________________________
_________________________________ ___________________________________
_________________________________ ___________________________________
_________________________________ ___________________________________
_________________________________ ___________________________________
_________________________________ ___________________________________
_________________________________ ___________________________________
_________________________________ ___________________________________
_________________________________ ___________________________________
_________________________________ ___________________________________
BUYER CONTROLLED SALES:
Property or Name Source of Business
_________________________________ ___________________________________
_________________________________ ___________________________________
_________________________________ ___________________________________
_________________________________ ___________________________________
_________________________________ ___________________________________
_________________________________ ___________________________________
_________________________________ ___________________________________
_________________________________ ___________________________________
_________________________________ ___________________________________
_________________________________ ___________________________________
ANALYSIS
Do you see any trends (i.e. much business coming from few sources or most listings
being taken in a certain geographic area or niche of buyers or sellers)? Yes, No
List issues or opportunities you see from this analysis.
Plan For Your Success 8 6.1.07
9. My Personal Strengths & WeaknessMy Personal Strengths & Weakness
My greatest strengths _____________________________________________________
My greatest weaknesses ___________________________________________________
On a scale of 1 to 10 (10 being highest), evaluate yourself in the following areas:
Current financial position ________
Professional knowledge ________
Use of Systems ________
Use of Marketing Tools ________
Business Building/Prospecting Skills ________
Listing Skills ________
Selling Skills ________
Communication Skills ________
Where can you make improvement over the next 12 months? ______________________
_______________________________________________________________________
Analyzing My Target MarketsAnalyzing My Target Markets
My geographic target market:
Current number of active listings ________
Average list price ________
Number of sales in the last 12 months ________
Average sold price ________
I would describe the current market as a (buyer, seller, balanced) market.
Estimated sales in the next 12 months will (increase, decrease, stable).
Is there a company or sales associate that is dominant in this market? Yes, No
Market analysis: (Rate 1-5 with 5 being excellent)
Turnover _______ Affordable Housing _______
Economic climate _______ New construction _______
Anticipated growth _______ Support services nearby _______
Issues and/or opportunities: ________________________________________________
MY DEMOGRAPHIC TARGET MARKET
Plan For Your Success 9 6.1.07
10. Consists of: _____________________________________________________________
_______________________________________________________________________
Issues and/or opportunities: ________________________________________________
Plan For Your Success 10 6.1.07
11. Business Expenses: Past 12 MonthsBusiness Expenses: Past 12 Months
GENERAL EXPENSE MARKETING EXPENSES
Auto (gas, repairs, tolls, etc. $ __________ Newspaper ads $ _________
Insurance (auto) $ __________ Magazine ads $ _________
Insurance (E&O, other) $ __________ Direct mail production $ _________
Dues (board, mls ,license) $ __________ Church/club directories $ _________
Prof books, tapes, etc. $ __________ Promotional flyers $ _________
Education $ __________ Postage/delivery $ _________
Phone, pager $ __________ Yard signs/riders $ _________
Office supplies $ __________ Photography $ _________
Equipment (fax, tech, etc) $ __________ Closing gifts $ _________
Computer (hardware) $ __________ Other _________________ $ _________
Professional services $ __________ Other _________________ $ _________
Secretary/personal asst. $ __________ Other__________________ $ _________
Sales conferences $ __________ Other _________________ $ _________
Gifts $ __________ Other _________________ $ _________
Entertainment $ __________ Other _________________ $ _________
Other _________________ $ __________ Other _________________ $ _________
Sub-Total General Expense: $__________ Sub-Total Marketing Expense: $ __________
TOTAL EXPENSE: $ _______________
Put an * next to each expense category you can improve upon.
EXPENSE SUMMARY
Commission Income + $_______________
General and Marketing Expenses - $_______________
Profit/Loss Profit = $_______________
Marketing Expense as % of income _______________ %
(Marketing Exp ÷ Commission Income)
(Top producers invest 8-10%)
Plan For Your Success 11 6.1.07
12. Step II: Determine Your ObjectivesStep II: Determine Your Objectives
““What I Hope To Achieve"What I Hope To Achieve"
Objectives provide direction within a given period of time and serve as standards for
evaluating performance.
Develop “SMART” objectives:
(S)pecific
(M)easurable
(A)ttainable
(R)ealistic
(T)ime-oriented
SAMPLE PLAN OBJECTIVES
1. To earn an annual personal income of $ _________________.
2. Increase my listings taken from _____ to _____ in _________.
3. Increase my listings sold from _____ to _____ in _________.
4. Increase my commission income from _____ to _____ in _________.
5. Increase my buyer controlled sales from _____ to _____ in _________.
6. To spend _____ % of my personal income on personal promotion.
7. To work a maximum of ___ days per week and take ___ weekends off per month.
8. Professional development __________________________________________________
_______________________________________________________________________
9. Personal development ____________________________________________________
_______________________________________________________________________
10. Technology Plan: My annual budget is _______________ . My needs are ____________
_______________________________________________________________________
11. Financial planning and retirement program _____________________________________
_______________________________________________________________________
Plan For Your Success 12 6.1.07
13. Step III: Develop StrategiesStep III: Develop Strategies
““How Will I Accomplish My Objectives”How Will I Accomplish My Objectives”
Strategies are broad activities that are within your control. Generally, it will take more than
one strategy to accomplish an objective. By the same token, however, each strategy, if
carefully planned and implemented, can accomplish a number of tasks at the same time.
For example, farming a higher price range area could increase your average commission
dollar as well as help to meet your listing objective. Get additional mileage for your efforts
by implementing strategies that serve multiple purposes.
THOUGHT STARTERS
FOR LISTING STRATEGIES:
Visit/Call FSBO's
Call expired listings
Use Tell 2O on all listings
Use 7 second presentation more often
Obtain appropriate price reductions
Establish a client follow up program
Development of farm areas
Use Seller Service System
FOR SALES STRATEGIES:
Hold open houses
Contact former customers
Better buyer qualification
Use 7 second presentation more often
Better use of the Best Buyer System
Development of farm areas
Increase personal promotion
Use the Best Buyer Follow up program
FOR COMMISSION/PROFIT STRATEGIES:
Increase the number of listings
Better customer follow-up
Work in higher price range
Hire an assistant
Contact previous customers
Take salable listings
Obtain appropriate price reductions
Decrease/increase business expenses
SAMPLE OBJECTIVE WITH STRATEGY:
Objective: Increase my buyer controlled sales from 18 to 22 in 2007.
Strategy: Hold at least 2 Open Houses per month.
Plan For Your Success 13 6.1.07
14. Step IV: Develop TacticsStep IV: Develop Tactics
““How Will I Make My Strategies Happen”How Will I Make My Strategies Happen”
Tactics are the specific steps for making each strategy happen. Unless the strategies are
broken into very specific steps (tactics), the objectives will not be met.
Use a planning worksheet to organize your strategies and tactics in such a way that
everything is at your fingertips. That way you will know immediately who will be responsible
for what and when for each action step and the expense involved.
TACTIC ELEMENTS
Action When Who Cost Completed
________________________________/_________/____________/________/__________
________________________________/_________/____________/________/__________
________________________________/_________/____________/________/__________
________________________________/_________/____________/________/__________
SAMPLE OBJECTIVE, STRATEGY AND TACTIC:
Objective: Increase my buyer controlled sales from 18 to 22 in 2007.
Strategy: Hold at least 2 Open Houses per month.
Tactics: Decide on house to hold open and date.
Preparation for and conduct the open house.
Follow-up with visitors and seller.
Plan For Your Success 14 6.1.07
15. Plan WorksheetPlan Worksheet
Objective: (What you hope to achieve) _________________________________________
__________________________________________________________________________
__________________________________________________________________________
Plan For Your Success 15 6.1.07
Strategy: (How to accomplish) __________________________________________________
____________________________________________________________________________
Tactic: (How to make my strategy happen)
Action When Who Cost Completed
____________________________________/___________/____________/__________/ ________
____________________________________/___________/____________/__________/ ________
____________________________________/___________/____________/__________/ ________
____________________________________/___________/____________/__________/ ________
Strategy: (How to accomplish) __________________________________________________
____________________________________________________________________________
Tactic: (How to make my strategy happen)
Action When Who Cost Completed
____________________________________/___________/____________/__________/ ________
____________________________________/___________/____________/__________/ ________
____________________________________/___________/____________/__________/ ________
____________________________________/___________/____________/__________/ ________
Strategy: (How to accomplish) __________________________________________________
____________________________________________________________________________
Tactic: (How to make my strategy happen)
Action When Who Cost Completed
____________________________________/___________/____________/__________/ ________
____________________________________/___________/____________/__________/ ________
____________________________________/___________/____________/__________/ ________
____________________________________/___________/____________/__________/ ________
16. Step V: Measuring My Plan ResultsStep V: Measuring My Plan Results
PLAN YEAR: _____________________
JAN FEB MAR APR MAY JUNE
LISTINGS
Taken Goal
Actual
+ - Goal
Sold Goal
Actual
+ - Goal
BUYER CONTROLLED SALES
Goal
Actual
+ - Goal
COMMISSION INCOME
Goal
Actual
+ - Goal
JULY AUG SEPT OCT NOV DEC
LISTINGS
Taken Goal
Actual
+ - Goal
Sold Goal
Actual
+ - Goal
BUYER CONTROLLED SALES
Goal
Actual
+ - Goal
COMMISSION INCOME
Goal
Actual
+ - Goal
Plan For Your Success 16 6.1.07
IF YOUR OBJECTIVES/STRATEGIES ARE NOT WORKING - CHANGE THEM!
17. My PersonalMy Personal
Business PlanBusiness Plan
For: ___________________________________
Plan Period: From _____________ To ________________
MY PERSONAL COMMITMENT
I have carefully considered my personal commitment toward furthering my real estate
career and hereby commit myself to the effort and sacrifices necessary to achieve my
goals.
I agree to track my results and meet regularly in a planning session with my manager in
order to review my progress and make plan changes as needed.
Associate: ___________________________________ Date: _________________
Manager: ___________________________________ Date: _________________
Plan For Your Success 17 6.1.07
18. Situational AnalysisSituational Analysis
““Where I Am Today”Where I Am Today”
ANALYZING MY BUSINESS
1. I currently have a business plan: yes; no
2. My current business approach is: just me; me and a personal assistant; me and
a buyer broker; my team: other: ________________________________
What’s working well: ________________________________________________
What’s not working well: _____________________________________________
3. What are the strengths of your business approach: ______________________________
_______________________________________________________________________
4. What are the weaknesses of your business approach: ___________________________
_______________________________________________________________________
5. I am managing my business well: yes; no Explain: __________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
6. To what do you credit your past real estate success: _____________________________
_______________________________________________________________________
BUSINESS GROWTH
1. My strategy for building my business is working: yes; no Explain:______________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
2. My greatest challenge over the last 12 months has been: _________________________
_______________________________________________________________________
_______________________________________________________________________
3. What could you have done over the last 12 months to improve your business? ________
Plan For Your Success 18 6.1.07
19. _______________________________________________________________________
4. My greatest opportunities over the next 12 months: ______________________________
_______________________________________________________________________
_______________________________________________________________________
5. Threats to my business over the next 12 months:
_______________________________________________________________________
Plan For Your Success 19 6.1.07
20. My Sales and Production StatisticsMy Sales and Production Statistics
Period: _______________________ Sources: MLS, office and personal records.
COMMISSION INCOME:
Commission Income $_______________________
Transactions/Sides # _______________________
Average Commission $ _______________________
LISTINGS:
# of Listings Taken #_______________________
# of Listings Sold #_______________________
Percentage of Listings that Sold % ______________________
Average List Price $_______________________
Average Sale Price $_______________________
Average Sale to List Price Ratio % ______________________
BUYER CONTROLLED SALES:
Buyer Controlled Sales/Closed #_______________________
Average Sale Price $_______________________
REFERRALS:
Outbound referrals sent #_______________________
SALES AND PRODUCTION ANALYSIS:
Can your percentage of listings “taken“ to “sold” be improved? Yes, No
Is your sale to list price ratio in line with market standards? Yes, No
Is your average listing taken/sold below the office average or your goal? Yes, No
What was your estimated contracts written to contracts closed ratio? ______ %
Why?
Plan For Your Success 20 6.1.07
21. My Recent Sources Of BusinessMy Recent Sources Of Business
Determine the source of business for your last 10 listings taken and 10 buyer controlled
sales starting with the most recent. (past customers, relative, farming, FSBO, expired, etc.).
LISTINGS TAKEN:
Property or Name Source of Business
_________________________________ ___________________________________
_________________________________ ___________________________________
_________________________________ ___________________________________
_________________________________ ___________________________________
_________________________________ ___________________________________
_________________________________ ___________________________________
_________________________________ ___________________________________
_________________________________ ___________________________________
_________________________________ ___________________________________
_________________________________ ___________________________________
BUYER CONTROLLED SALES:
Property or Name Source of Business
_________________________________ ___________________________________
_________________________________ ___________________________________
_________________________________ ___________________________________
_________________________________ ___________________________________
_________________________________ ___________________________________
_________________________________ ___________________________________
_________________________________ ___________________________________
_________________________________ ___________________________________
_________________________________ ___________________________________
_________________________________ ___________________________________
ANALYSIS
Do you see any trends (i.e. much business coming from few sources or most listings
being taken in a certain geographic area or niche of buyers or sellers)? Yes, No
List issues or opportunities you see from this analysis.
Plan For Your Success 21 6.1.07
22. My Personal Strengths & WeaknessMy Personal Strengths & Weakness
My greatest strengths _____________________________________________________
My greatest weaknesses ___________________________________________________
On a scale of 1 to 10 (10 being highest), evaluate yourself in the following areas:
Current financial position ________
Professional knowledge ________
Use of Systems ________
Use of Marketing Tools ________
Business Building/Prospecting Skills ________
Listing Skills ________
Selling Skills ________
Communication Skills ________
Where can you make improvement over the next 12 months? ______________________
_______________________________________________________________________
Analyzing My Target MarketsAnalyzing My Target Markets
My geographic target market:
Current number of active listings ________
Average list price ________
Number of sales in the last 12 months ________
Average sold price ________
I would describe the current market as a (buyer, seller, balanced) market.
Estimated sales in the next 12 months will (increase, decrease, stable).
Is there a company or sales associate that is dominant in this market? Yes, No
Market analysis: (Rate 1-5 with 5 being excellent)
Turnover _______ Affordable Housing _______
Economic climate _______ New construction _______
Anticipated growth _______ Support services nearby _______
Issues and/or opportunities: ________________________________________________
MY DEMOGRAPHIC TARGET MARKET
Plan For Your Success 22 6.1.07
23. Consists of: _____________________________________________________________
_______________________________________________________________________
Issues and/or opportunities: ________________________________________________
Plan For Your Success 23 6.1.07
24. Business Expenses: Past 12 MonthsBusiness Expenses: Past 12 Months
GENERAL EXPENSE MARKETING EXPENSES
Auto (gas, repairs, tolls, etc. $ __________ Newspaper ads $ _________
Insurance (auto) $ __________ Magazine ads $ _________
Insurance (E&O, other) $ __________ Direct mail production $ _________
Dues (board, mls ,license) $ __________ Church/club directories $ _________
Prof books, tapes, etc. $ __________ Promotional flyers $ _________
Education $ __________ Postage/delivery $ _________
Phone, pager $ __________ Yard signs/riders $ _________
Office supplies $ __________ Photography $ _________
Equipment (fax, tech, etc) $ __________ Closing gifts $ _________
Computer (hardware) $ __________ Other _________________ $ _________
Professional services $ __________ Other _________________ $ _________
Secretary/personal asst. $ __________ Other__________________ $ _________
Sales conferences $ __________ Other _________________ $ _________
Gifts $ __________ Other _________________ $ _________
Entertainment $ __________ Other _________________ $ _________
Other _________________ $ __________ Other _________________ $ _________
Sub-Total General Expense: $__________ Sub-Total Marketing Expense: $ __________
TOTAL EXPENSE: $ _______________
Put an * next to each expense category you can improve upon.
EXPENSE SUMMARY
Commission Income + $_______________
General and Marketing Expenses - $_______________
Profit/Loss Profit = $_______________
Marketing Expense as % of income _______________ %
(Marketing Exp ÷ Commission Income)
(Top producers invest 8-10%)
Plan For Your Success 24 6.1.07
25. Plan WorksheetPlan Worksheet
Objective: (What you hope to achieve) _________________________________________
__________________________________________________________________________
__________________________________________________________________________
Plan For Your Success 25 6.1.07
Strategy: (How to accomplish) __________________________________________________
____________________________________________________________________________
Tactic: (How to make my strategy happen)
Action When Who Cost Completed
____________________________________/___________/____________/__________/ ________
____________________________________/___________/____________/__________/ ________
____________________________________/___________/____________/__________/ ________
____________________________________/___________/____________/__________/ ________
Strategy: (How to accomplish) __________________________________________________
____________________________________________________________________________
Tactic: (How to make my strategy happen)
Action When Who Cost Completed
____________________________________/___________/____________/__________/ ________
____________________________________/___________/____________/__________/ ________
____________________________________/___________/____________/__________/ ________
____________________________________/___________/____________/__________/ ________
Strategy: (How to accomplish) __________________________________________________
____________________________________________________________________________
Tactic: (How to make my strategy happen)
Action When Who Cost Completed
____________________________________/___________/____________/__________/ ________
____________________________________/___________/____________/__________/ ________
____________________________________/___________/____________/__________/ ________
____________________________________/___________/____________/__________/ ________
Make copies
26. Measuring My Plan ResultsMeasuring My Plan Results
PLAN YEAR: _____________________
JAN FEB MAR APR MAY JUNE
LISTINGS
Taken Goal
Actual
+ - Goal
Sold Goal
Actual
+ - Goal
BUYER CONTROLLED SALES
Goal
Actual
+ - Goal
COMMISSION INCOME
Goal
Actual
+ - Goal
JULY AUG SEPT OCT NOV DEC
LISTINGS
Taken Goal
Actual
+ - Goal
Sold Goal
Actual
+ - Goal
BUYER CONTROLLED SALES
Goal
Actual
+ - Goal
COMMISSION INCOME
Goal
Actual
+ - Goal
Plan For Your Success 26 6.1.07
IF YOUR OBJECTIVES/STRATEGIES ARE NOT WORKING - CHANGE THEM!