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Real estate’s business planning ‘secret’

5 areas that directly impact your bottom line

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Experts agree that agents need a plan to run a successful business. Speakers and writers hound us about setting goals, meeting production quotas, and how important it is to "do the numbers." While there are hundreds of formats for a great business plan, no one really addresses what stops agents from creating a plan in the first place. The dirty little secret about business planning is virtually no one has been trained on the nuts and bolts of being profitable. The primary reason we don't have a viable business plan is very few agents have ever been shown how to create profitability. We have no idea how to evaluate our business, how to identify our strongest profit centers, or how to correctly allocate our resources based upon market trends. Instead, we're mistakenly taught to focus on revenues and GCI rather than bottom-line profits. We're supposed to set production goals and keep prospecting until we meet them. Complicating the issue is the fact that most agents are so busy, few...