This business plan model is easy to set up and will continually provide you with daily guidance on how to grow your business.

1. If you have trouble Hearing the
presentation, please dial in at:
866.587.4670
Code: 715587203#
We Will Start at 6:30 pm EST

3. How do I add value to the How do I solve a specific
clients I serve? pain for which clients are
willing to pay a premium?
Potential market share Risk vs. reward
and profitability analysis: analysis:
Is my target market large enough? Is there a high return on investment?
Is there growth potential?
Strong/early/sustainable cash flow?
High profit margin?
Source: Timmons, J. and Spinelli, S. (2007) New Venture Creation: Entrepreneurship in the 21st Century, 7th Edition, McGraw Hill.

4. Chung Phan is a Vietnam native who immigrated
here after graduating with a masters degree in
computer engineering. He is 46 years old with a wife and
3 children. He works as a systems analyst at Comco, and
earns $92,346 per year. He lives in Stonewood
I interact with Chung at church
Springs, plays golf and loves technology.
and local civic organizations.
I will build trust by becoming the first Vietnamese-speaking
agent in our community, and I will work hard to become a
credible professional in my community by being active in it.

5. SWOT analysis of competitor Mark Witherspoon
Mark is a recognized, high Mark does not speak
producing professional who Vietnamese and is not active
has marketed and sold to in our community.
several Vietnamese
families.
I have the opportunity to win Mark has sold to some in the
market share from Mark by community and has a lot of
relating to the Vietnamese resources to advertise
community by speaking should he decide to market
their language and being a more heavily. He could even
part of it. invest in having a translator.

6. •Broker
•Lender
•Coach
•Closing attorney
•Inspectors
•Contractors
•Sphere of influence
•Referring closed clients

7. • What are my major
business goals?
• Short-term
• Mid-term
• Long-term
• How will my business change?
• Are there buyout opportunities?

8. For agents, this has to be very specific.
Keep a strategic daily calendar defining your work
habits and what specifically you will do.
Know your waterfall:
75 sales calls = 1 appointment
3 appointments = 1 signed listing/buyers agreement
2 signed agreements = 1 ratified contract
1.5 ratified contracts = 1 closed transaction

9. Know your cash flow.
Monetize all costs into each closed transaction.
$12,000/yr marketing
+ $3,000/yr franchise fee
+ $600/yr E&O insurance
+ $4000/yr office/gas/business
$19,600 total expenses
divided over 18 transactions in 2012
$1,089 per transaction

10. Know your cash flow.
Using this method, subtracting “cost of goods”
expenses from each transaction gives me my
positive, pre-tax cash flow projections.
Example:
I close as the buyer’s agent on a $200,000 home
offering 3% to the buyer’s agent. I grossed $6,000.
I split 40% with my broker, I’m left with $3,600.
$3,600 - $1,089 (Cost of goods) = $2,511 profit.

11. What is my product?
• Service : how do I market myself?
• Listing : how do I market my listing?
Who is my target?
What medium does my target
consume?

12. Get specific about your waterfall.
• Where do continued flow of clients come from?
• Provided the waterfall works as projected, how
does that translate to profitability?
75 calls = 1 appointment
3 appointments = 1 agreement signed
2 signed agreements = 1 ratified contracts
1.5 ratified contract = 1 closing
Average home price is $200,000
Cost of doing business = $1,089 per transaction
Take home $2,511 per transaction with current broker split

13. What is my breakeven?
• The point at which I have all my bills paid, and I
become profitable.
What is my profitability time projection?
• How long before my initial investment is returned?
• How many sales must I make to breakeven?
• How many sales must I make to meet my
profitability projections?

14. Be able to explain in 15 minutes in simple terms:
• Industry problem and your solution
• Size and viability of your specific market
• Technology plan
• Your competitive advantage
• Your team
• Operating strategy
• Your financials
• Your breakeven and profitability projections