Business Plan

The business plan is a stranger to most of REALTORS ®. After studying, observing, interviewing, and coaching hundreds of agents, I have concluded that very few have taken the time to create a business plan quality. Fewer still reviewing their business plans on a regular basis. The few that have good business plans often make them so complicated that have little value. These agents create a complex business plan that will never achieve. What kind of value does this have on their overall business plan? . . . Zero!

A well-written, concise business plan can provide an excellent road map to guide your quarter, year, or next five years. The most well-managed companies have well developed business plans. You, as an agent, I am the President of your company Own Real Estate sales. You have to see themselves as the leader of a company that need direction, vision, and a well-designed road map to follow. The business plan can provide all these tools that lead to success.

To create a quality business plan, you must know where you are today - right now - in your company. You must ask some basic questions about your business.

1. How I earn in gross commission?

2. Where does my company is?

3. What is my average commission check?

4. What is my average cost per transaction?

5. How many days do I have to go to work this year?

6. How many hours a day, I go to work?

7. What should I take to take my business to the next level?

The best place to start is at the top. Ask yourself: "How I earn?" You can have total control of your income. You can do pretty much as you want. The only person or thing that determines your income is you. The market, other agents, and other external factors have very little control over your income. Only you have the absolute control and complete.

Once you determine the amount you want to win, splitting the amounts quarterly, monthly and weekly. For example, if you decide to earn $ 500,000 next year, you need to earn $ 125 000 per quarter, $ 41,666 per month or $ 9,615 per week. Secondly, you must determine where the business originates. Understanding the percentage of transactions that are done in every category. We say that ends 70-five offered last year. The break down was 30 referrals from fifteen open houses, the call sign of six twelve p.m. expireds.

Here is a breakdown by percentage:

Referrals or 40

Login or 24% calls

homes or 20% open

Expireds or 16%

You should also know the ratio or percentage of items sold compared to buyer controlled sales.

The next exercise is to determine the average check of the Commission. Take your gross commission and divide by the number of transactions. For the purposes of our example, we will use $ 5,500 as the average commission check. Want to earn $ 500,000 next year. To do this, you divide $ 500,000 $ 5,500 which equates to 91 transactions. You will need to close an additional 16 operations next year to achieve your goal.

Then figure out the number of transactions necessary in every category.

or 40% of 91 = 37 transactions resulting from referrals

or 24% of 91 = 22 operations call sign

or 20% of 91 = 18 transactions open houses

or 15% of 91 = 14 transactions from expireds

You can break these numbers up to a quarterly, monthly and weekly transactions every category. This break down will give you a clear path to reach your income goal. If you put the number of transactions required weekly, by the end of the year, will reach your goal.

Then you need to break down each category of business: referrals, sign calls, open houses and expireds. You need to understand exactly what you need to do to create the results you want. The more you can break the business, the easier the overall objective is to achieve. It 'easier to reach your goals, whether it is possible to reduce the daily activities. All you have to do is the daily activities to achieve the desired results.

Another important factor is profitability. You determine the gross profit by subtracting expenses from gross commission your dollar. The critical point is to not miss any of your expenses. Organize all your expenses into categories such as auto, personal, mailing, marketing, office supplies, etc. It is only fooling yourself if you are not accurate. Take your gross expenses and divide by the number of transactions. For example, the gross expenditure of $ 95,000 / 75 = $ 1,267, which is what it costs to close a transaction in our example. You can see how you're really successful in your business, if you follow this example.

To answer questions five and six, you face your days and hours of work. You must take this into account against the work to be done. Then divide the work to be completed by the number of days worked. This process will give a program of what should be done every day.

The last section of a well planned business plan is implementing new ideas or systems. Determine the weaknesses of your business and devise a plan to overcome them. Do not go overboard in this area because, often, when agents implement well, hampering their activities to a crawl. Since everyone is different and all the staff are different, a good rule of thumb is: Do not implement more than two major changes in a month. Determine what needs to be completed. Your priority list, and then develop a plan to implement the changes at specific times.

A business plan can be the backbone of your business success. The spine is weakened if not checked on a regular basis. You should review your business plan a day for the first month, then will be reviewed regularly thereafter. Do not make the mistake of writing a great business plan and then never look back. What a mistake it would be almost as if it had never been written in the first place .......