Looking for more advice? Check out Inman’s New Agent Essentials.
Real estate as an industry lacks business planning. Few people do it and most people don’t talk about it, either. It is amazing to see how many agents have viable businesses but put little to no planning into it. This is also the reason why many people in the industry ride the sales roller coaster year after year with no consistency.
The truth is, winning in the market requires a business plan. Even though we’re already several weeks into a new calendar year, it’s not too late for you to develop one for your real estate business. There are many ways to develop a business plan, so I’m offering a high-level look at the key components vital to developing a successful one.
Put your plan in writing
If you don’t write it down, it isn’t real.
Post daily visual reminders of your business goals
Remind yourself visually of the goals you’re working toward. Keep them in your car, in your home office, in your professional office and everywhere you spend time.
Declare your goal publicly
Tell your wife, your husband, your kids, your boyfriend or girlfriend, your teammates or your managing broker. Tell people what you’re trying to do because it will increase your accountability.
Many people avoid this step because it’s uncomfortable to publicly announce what you’re hoping to accomplish, but it’s key to your future success.
Recognize your plan as a living document
This plan is adjustable. Once you’ve created it, you can change your plan, adjust your strategies and increase or decrease your numbers.
The key to this option is your willingness to track and measure your activity so you can see trends in your business. Maybe you set an unreasonable goal. Now that you’re working the plan, you can better understand how to adjust your goal.
Identify your motivation
When you hit your goals, how will that impact your life? How will that affect the people you love or those who count on you?
This isn’t your “I want to change the world,” goal. It’s more meaningful than that because it’s personal and it’s realistic. As a result, it’s impactful because it motivates you to push through on days that you don’t feel like doing the necessary steps.
Start with your financials
- What are your must-haves, and what costs are associated with those things?
- Calculate the number of sales required to cover those costs.
- What activities and behaviors will move you toward those numbers?
- Develop your plan accordingly.
Focus on outreach attempts
Every single Realtor in every single market should focus on daily outreach attempts because it’s the singular activity that allows you to achieve the objectives you’ve established for your real estate business. Your activities are 100 percent within your control. These activities influence your objectives. Hitting your objectives will lead to the results (sales and income).
- Outbound phone calls
- Text messages
How many potential clients are you interacting with each day? The truth is that whoever talks to the most people ultimately goes on the most appointments, lands the most listings and sells the most houses.
Think about what you can and can’t control. Sales is a long-game industry driven by consistent, disciplined action. The outreach you make will significantly impact the revenue-generating pieces of your business.
- Appointments set
- Appointments held
- Offers written
- Listing agreements signed
You are the primary factor that can derail your own outreach. If you prioritize outreach, prospecting and lead generation, those activities will help you achieve the next-level goals that you’ve established for your business.
If you get really clear about your motivations, your goals and the activities that will help you achieve those things, it will be much easier to execute your plan. Your plan really can be that simple.
Establishing a real estate business plan will make you unstoppable because you’ll know your goals and you’ll know how to achieve them. If you haven’t developed a business plan for 2022, it’s not too late to start.