I've got a plan
Realtor Notebook
By Teresa Boardman, Wednesday, October 15, 2008.
Every October I start my business plan for the next year. I like to have it finished by Nov. 1. My process starts with a critical evaluation of the past year.
I keep it simple by deciding how much money I want to make and calculate how many transactions I will need to achieve my goal. I then list where the business will come from. I can count on a number of transactions from past clients, friends, neighbors and referrals. The rest will come in through the Internet.
Once I determine where the business will come from I sit down and figure out what I need to do to make it all happen, how much it will cost and how many hours it will take. A budget is critical and so is tracking expenses. My goal is to maximize profits while minimizing the amount of time and money I spend. Call me the lazy Realtor.
The largest part of my business plan is a social networking plan and a plan for my blog, which is the centerpiece of my online marketing efforts. The plan is pretty unique -- the how-to book on this has not been written yet, which is fine because it will be obsolete before it is published.
I am often asked where I find the time to write a blog post every day and take so many photos. It is simple: Both are a core part of my business plan and I set aside time each week for writing and photography.
The failure rate for blogs is pretty high. I have read that 95 percent of them will fail. I suspect that part of the reason for the failure is that blog owners do not treat them as part of the business and the blogger does not set goals or have a plan in place.
Just "sort of, kind of" writing a blog is a waste of time and can cause marital discord when the blogger stays up half the night puttering around on the computer and has nothing to show for it. Writing a blog is not for everyone.
My social networking plan is fairly simple. My goal this year is to stay as local as I can -- 90 percent of my clients will be people who already live in my town -- and to attend more local social media events.
Time spent on social networks has to be measured. Not all social networks are equal and they are not for everyone. The trick is to spend enough time at it to generate some results but not so much time that it interferes with business, and to be strategic when signing up for social networks.
Other components of my plan include a budget and an education strategy. I take education seriously and start my plan by thinking about what I need to learn. My budget will include money for books and for educational opportunities both inside and outside of the real estate industry. Most will be related to marketing or technology.
In general I will be spending more money online this year and less money on print advertising. The time and money I spent online last year had the highest return on investment.
What I like the most about being a Realtor is that there are many ways to do the job. I believe that to succeed in 2009 I will need to work hard but will also need to be creative, flexible, and open to new ideas and opportunities.
Teresa Boardman is a broker in St. Paul, Minn., and founder of the St. Paul Real Estate blog.
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Submitted by Scott Farrell on October 16, 2008 - 3:32am.
Teresa, it is nice to see an agent who takes her "business" seriously. I spend quite of bit of time talking to our agents about how they plan their business. Most do not approach their business as a business but as a job and work from lead to lead and contract to contract. There is no science in how to allocate costs, time and apply limited resources like time to make them productive and profitable.
Submitted by Catherine Read on October 16, 2008 - 4:20am.
Teresa this is an excellent template for other agents to follow in preparing themselves for the coming year. Your points are simple, practical and get right to the heart of what matters in business planning. I also agree with you that blogging is not for everyone and it's better to figure that out sooner rather than later. There are numerous ways to effectively run a successful real estate business, and certainly using social media technologies can be a part of that for many agents.
Catherine S. Read
Creative Read, Inc.
Submitted by Vicki Goorchenko ABR, CRS, GRI on October 16, 2008 - 6:34am.
Teresa, You are right on track! I have done my business plan in the fall every year for the last 20 years. I came into this Real Estate Business after owning a Software Development firm for 10 years and knew that for a business to succeed, you must have a plan, and you must use it! That starts with getting away from my business if even just for one full day, but no less. I do it in October so I can begin to implement in November. As we know, it takes 2 months for business to close so to impact my year in 2009, I need to be working at it by Nov 1, 2008. This year I will be I will be doing a Business Planning Clinic in Los Angeles with Rick Geha, Keller Williams Realty next Monday and Tues (10/20-21). I can't give enough kudos to Rick as a facilitator and know that at the end of the 2 days I'll have my revised plan ready to go for 2009. If you don't have a 'plan' to do your Business Plan, you've only got a few weeks to get it done if you want to start 2009 with closed sales and meet your goals.
Vicki Goorchenko
Realtor, Productivity Coach
Keller Williams Palos Verdes Realty
vicki@LiveAtTheBeach.com
Submitted by Larry Wright on October 16, 2008 - 7:24am.
Business and marketing plans are essential yet I don't see where blogs are among the most productive business tools. But there's no denying that some are generating significant amounts of business so I reserve the right to be wrong.
Larry Wright
Washington real estate
www.nwrealty.net
Submitted by Jay Thompson on October 16, 2008 - 7:58am.
It never ceases to amaze me how many agents and brokers don't plan. This is a *business* folks, you need to manage it as such. There are an almost infinite number of ways to be successful in this business, but if you don't have goals and a plan to get there it's doubtful you'll find much success. Or happiness.
Nice post T.
Jay Thompson
Broker / Owner
Thompson's Realty
Blog: www.PhoenixRealEstateGuy.com
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Submitted by Bill Shue on October 16, 2008 - 8:28am.
I believe and many studies have proven, that many business entities fail due to lack of a comprehensive business plan. The problem is most agents don't do a plan due to a potential time consuming process. Why not use web based software Create A Plan which is approved by CRS. It is simple to use, menu driven and has accountability functionality. Go to www.CreateAPlan.com
Submitted by Michael Guthrie on October 16, 2008 - 9:44am.
Business Planning is so critical to an individual or company's success. The one thing I have not seen written is the importance of daily activites. In this market it is so easy to get frustrated and discouraged. Having a list of things you need to do EVERY day to accomplish your plan makes it easier to stay on track vs sticking your thumb in your mouth and going to bed. :)
Submitted by Alvin Paulson on October 16, 2008 - 10:34am.
The problem is, many agents don't stick to the plan like they should.
Dallas Real Estate
Submitted by John Ford on October 16, 2008 - 10:50am.
Having a business plan is crucial, but that plan must also be a good one that will work.
Boston Real Estate
Submitted by Brenda Goodell on October 16, 2008 - 11:42am.
Teresa, you have made and excellent point and a very well written blog. I could not agree with you more. Excellent Job!
Celina Real Estate
Submitted by Harry Pokorny on October 16, 2008 - 12:53pm.
You make a very excellent point, everyone needs to read this article and take it in.
Austin Real Estate
Submitted by Christy Leavine on October 16, 2008 - 2:10pm.
This is some very solid advice that every agent should take to heart, tack it to their walls if they need to. The nice thing is that this information can carry over into any career, because its really about just taking what you do seriously.
I always advise others to take their business seriously and plan everything, think of the details and be creative enough to develop a plan for their success. Thank you for a great read today!
Christy Leavine offers:
real estate career training through her online real estate school.