Business Planning for Real Estate

Business Planning for Real Estate is coming this time of the year. At the last quarter we are thinking and creating our business plan for real estate agents, team leader and brokers. A business plan is an important step to establish a successful real estate business. Clarity is key, and that is what you are getting when you are creating your business plan. It's time to get clear on what you want and what you should do.

Getting Clarity

Spend some time figuring out what you want for your real estate business, what your obstacles, goals and problems are. Know those and how you can overcome and solve them at the same time. A business plan is also a good time to get clarity around your life, your business, and your overall goals. The clearer you are here with your business plan, the more effective everything else become.

Know Your Numbers

As a real estate agent, team leader or broker go back into last year and take a look what worked, what didn't work, and also what your lead generation sources was, how they perform and what our goal is for next year.

New agents can go into the MLS to understand the average sales prices and commission paid in the past 12 months.

Meaning Of Your Business

Our first question we are asking every year, what does a successful real estate business means? So we are including our families because successful real estate business means something different for me than for my family. At the end of the day,

The next step we take a a look, what expenses and income we had. Understand the money that comes in and the money that goes out.

And we want to be very clear about what we want to establish and writing it down.

Creating Your Business Plan

Many new agents never heard of a business plan for their real estate business. Many agents don't have a business plan for real estate. It is important that you understand that a written down business plan can guide you through the year. You always want to come back and take a look where you are. If you are reaching your goals, or if you have to cross correct.

And now we are going in and thinking about all the problems and obstacles I am facing that currently exists so that I cannot reach my goals and accomplishments. I am always on the offense and no longer on the defense and can prepare for the next step so that I am knowing what problems I am having and how I can correct, with the action steps to take so that I can reach my goals for next year.

When we are doing our goals settings, that we are setting them facing a 10 month sales cycle. We know in the online world, a average agent needs approximately 100 leads to convert them into one closing. And that is important that you understand your closing ratio, because this is for everybody different.

Creating Your Real Estate Goals

We know an average real estate agent needs approximately 100 online leads to convert them into one closing. But that is not all what we know. We also know that out of new 100 client opportunities that are coming into our pipeline, we know that the average agent approximately converts 30% into conversation, meaning out of the 100 leads.

We know we have 30 real conversation with people, a conversation over the phone, a conversation face to face, a conversation either via message or even a conversation via texts, where we are going back and forth and having a conversation with our new client opportunity.

Out of the 30 conversations we know the average agents convert those conversation in three appointments into one closing.

From Lead To Closing

Do you know how many conversations you are having, how many appointments you are making. And that's what we are writing down in our business plan, where we want to know how many total appointments do I need to reach my closing goals. Knowing three appointments, create one closing. We also want to make sure that we know how many total lead conversations I need to make one appointment.

How many daily reach outs do I need over phone calls, text, messenger, and messenger. When I'm having 100 leads, how many conversations can I create? And you want to notice for your business so that you are now able to track what works and what doesn't.

When you do this business planning and exercising, you will understand your business plan and the activities you need to reach so that you are reaching your goals.

Business Planning Exercise

Whatever are you a real estate professional, a team leader, or a broker. When you are a team leader or a broker, you should do this exercise for each of your agents. Then you know exactly what agent contributes, how much to your goals of your brokerage or of your team. Once you have completed the exercise, you are clear where you are with your overall goals, your business and your life.

And that is the most important to have clarity, where you stand and how you can reach it. I would assume you are completing this exercise, planning out, taking some time and doing a business planning day or two, depending how deep you want to go. If you have a now gone clear on your goals and the problems and obstacles you are experience. You also now know the solution to overcome them.

You now have nailed down a clear written action plan you know, you need to take to reach your goals for next year. But first you have to take a moment and make some time to establish your business plan. Thanks for spending some time with me today. And I see you in the next episode,