How do you plan ahead and make sure you are spending wisely? Inman contributor and marketing maven Christy Murdock talked to agents and financial planners to get some of their best tips and must-dos to keep your financial life on track.
This month-over-month financial plan will help walk you through where you should be and help you avoid any cash-flow pitfalls in your first year. Bookmark this handy list of what to expect as you launch your business — and refer to it often.
Month 1: Plan for initial expenses
- Save about six months of reserves
- Consider a side-hustle for extra cash
- Plan for upfront expenses, such as business cards, license fees, brokerage fees, marketing materials, etc.
Month 2: Create and stick to a budget
- Mentally track your daily expenses outside of real estate
- Get an app to track personal and business costs
- Know what’s tax-deductible
- Analyse your expenses, and pare down expenses if needed
Month 3: Prep for your first commission
- Set aside 25-30 percent for taxes
- Put some away for future business costs
- Pay yourself
- Prep for referrals
Many people plan their year around how many sales they need to make a certain level of income — that planning needs to include non-disposable income, like taxes, marketing, supplies and fees.
Month 4: Focus on marketing and promotion
- Have lots of real estate conversations
- Work on your database
- If you have a CRM, get to know the ins and outs
- Start thinking about your personal brand
- Use free programs like Canva to help create marketing materials
- Start blogging for buyers, sellers and homeowners
- Get going on social media
- Circle prospect
Month 5: Re-evaluate your budget
- Take another look at your budget and expenses
- Pull back on non-essentials if needed
- Find low-cost ways to build your business
- Bootstrap what you can to keep your cash
- Take time to treat yourself
- Invest in tax-advantaged accounts
You might be putting off creating an online presence because you think it will be expensive, but at some point, you will need to put together a website and digital marketing. The good news is: You can do it for less than $200.
Month 6: Get your digital footprint online
- Stop putting off your building an online presence
- Look into a blog platform with a domain name, such as WordPress or Wix
- Start making videos on YouTube
- Double down on your social media efforts on a couple of platforms
- Learn to repurpose content
Month 7: Think bigger
- Analyze where your clients are coming from
- Look at what is (and what’s not) working for them
- Start thinking about who you enjoy working with (first-time buyers, young families, boomers, etc.)
Month 8: Find your focus
- Start thinking about a niche or focus
- Ask yourself:
- Who do I like working with?
- What are my interests and passions?
- Is there a certain property type I enjoy? (waterfront, luxury, farms, etc.)
- What skills do I need to obtain to truly specialize in this niche
- Start gearing your content marketing toward your niche
- Set up a farm in your desired focus
Month 9: Add more education
- Figure out what classes you’ll take for continuing education
- Take advantage of free resources
- Consider getting licensed in another state
Month 10: Plan for upcoming expenses
- Set aside money for license renewal
- Plan for refreshed marketing materials
- Level up your marketing volume
- Look for support so you can focus on dollar-generating activities
Month 11: Scale up
- Consider hiring a virtual assistant
- Delegate activities you don’t love
- Look for more efficient practices
Month 12: Celebrate like a boss
- Do something special to celebrate — you made it through your first year!
