As we reach the end of the last quarter of 2017, it’s full steam ahead for business planning for my agents. Although mapping out an entire year in an ever-evolving industry like real estate can seem daunting, it is still essential to establish a framework for the next year. Follow these four steps to break down the planning process into manageable chunks:
STEP 1: SHOW ME THE MONEY
Start with your budget. Inconsistent cash flow is a common reason why agents struggle to make it long-term in the real estate industry. Plan out your expected business expenses, which can include:
- Advertising and marketing
- General business costs, like gas, insurance, supplies, training, taxes, licensing and MLS dues
- Your monthly salary
Then, determine your income and set a goal for how much you want to earn for the year. In your calculations, include:
- Average sales prices of the homes you sold in 2017
- Number of appointments and clients you need to meet your annual goals
- Percentage of appointments converted
STEP 2: WHERE IS YOUR BUSINESS COMING FROM?
Identify your ideal client by thinking through these questions:
- What are your ideal client’s demographics (age, location, income, average sales price)?
- What challenges does your ideal client face? For example, first-time buyers lack experience.
- Where do your ideal clients get their information — Facebook, the newspaper, reading?
Then, once you’ve identified your audience, determine possible neighborhoods that fit this profile. Consider the following parameters:
- Where are you currently working?
- How many homes are in the area, and how many can you consistently market?
- Does the average sales price fit your target market?
- Is the area already being heavily marketed by someone else?
- What is the turnover rate for the area?
Finally, craft a diversified and consistent marketing plan that speaks to your audience. Your marketing plan could include all or some of the following components:
- Facebook ads
- Direct mail
- MyNeighborhood Report and newsletter
- Door knocking
- Expired or FSBO listings
- Community events and networking
STEP 3: STAY INFORMED
To be a successful agent, you have to stay up-to-date with the latest trends and market statistics. There are so many opportunities to enroll in ongoing education at ReeceNichols, You can earn your CRNC (Certified ReeceNichols Consultant) designation, enroll in our FastTrack mentorship program or take any of the CE classes offered at the Reece & Nichols Training Center.
STEP 4: EVALUATE AND MEASURE YOUR EFFORTS
Throughout the year, track your progress throughout the year and adjust when needed. You can set up an Excel spreadsheet with rows tracking the following:
- Closed volume 2017
- Total units 2017
- Average sales price 2017
- Closed 2018
- Total units 2018
- Average sales price 2018
- Unit increase percentile, 2017 versus 2018
- Dollar volume increase, 2017 versus 2018
- Commission cutting current year average
- Lost commission
- Earnings year-to-date
That way, at the end of 2018, you can evaluate to see if you reached your goals.