Every business needs a business plan, and your real estate business is no exception. Your business plan is a clear and detailed picture of your business. This is where you plan your strategy for success and plot the numbers that will show you how you are doing. This means knowing the numbers of houses and units that sell in your marketplace every year over a ten-year period, and deciding how many transactions you must complete in order to achieve the market share you want. You need to know the average sale prices and stock turnover in your marketplaces so you can focus your efforts on those that average both the highest numbers of sales and the highest prices.
The best times to review your business plan are at the end of the calendar year and the end of the financial year. You do this twice a year to make sure you are always in a pattern of growth and not sliding backward during any quarter. Reviewing this often also gives you a clear idea of what is working for you so that you can keep doing those things, or can change your strategies if they stop working. Your basic tools for growth include increasing your fees, selling more properties, or increasing your average sale price.
When you review your business plan, start by reviewing your current numbers over the past year – listings, sales and income generated. Review each month in detail and look for patterns of activity. Which months were slower, which were more successful, and what elements contributed to those levels of activity? You want to really understand what is working for you – or against you – and why.
In order to help you review your financials more effectively click here for our 2014Financials tool where you can enter your own numbers for current fees and income you want to generate, and get an estimate for the numbers of listings and sales you need to produce over ten months in order to reach your goals. We use a ten month calendar because you need two months worth of vacation, holidays and other time off. This time off is vital for you to rest, regroup, and stay healthy and motivated for the hard work you do the rest of the year. Set dates for your proposed days off a full 12 months ahead so that you can plan your working schedule to make sure you get that time off you need and deserve. Knowing you have a little time off every 8 to 10 weeks is motivational as well as rejuvenating, and also helps you to appreciate the quality of life your hard work is allowing you to enjoy.
Other factors you can control that directly affect your business growth include adjusting your days on market, hiring more and/or better support people, implementing and maintaining reliable and scalable systems, and staying on top of your personal fitness. Growing your business does not happen by luck. It happens because you plan for it, adjust the plan when necessary, and consistently follow through on your business plan.
I hope that you’ve enjoyed today’s Coaching Tip, and I look forward to seeing you here again next week.