5 elements of a profitable real estate business plan
Do you want to finish the year strong and continue your momentum next year? A well-executed business plan is essential. A for-profit business plan must be in place and activated by November 1.
It takes 30-45 days for activities to result in contracts, so your associates will end the year strong and build momentum (pending contracts) into next year. A good business plan has five elements.
Learn from last year. What worked? What went wrong? Where does the company come from? How many listings and sales have I had? How can I improve? Unfortunately, many salespeople never take the time to review their business and their progress. They drift from year to year like injured real estate professionals. They don’t have 10 years in the business; they are one year old 10 times.
Set goals for next year. Set goals in four areas:
- Your Why; Your life list; Your reasons for living. What is the rocket fuel that motivates you to get up and go to work?
- Your financial goals. Your Why needs to be funded!
- Your net worth goals. Do you want financial freedom one day? Real wealth comes from income-generating net worth, not ordinary income.
- Your database. Do you have enough connections to achieve your financial goals? A good measure is one household for every $1,000 of gross commission income.
Set activity goals. Unfortunately, many sellers skip this step. They’re good at setting goals, but the key to achieving those goals is productive activities called flow. There are two types of flow: the direct flow (face to face and voice to voice) and the automatic flow (mailings and electronic communication).
Set specific flow goals – number of calls, mailings, lunches, etc. Research shows that 50 live stream contacts result in a single contract. Do you want to increase your income? Increase your throughput and measure it. As we say, “Flow fixes everything”.
Plan your activities. Schedule time for your flow activities. We tend to do what we plan. The system used by almost every major producer I have studied is time blocking. They control their agenda rather than drifting through the day. They make an appointment with themselves to perform their flow activities.
Take action! A good business plan is only useful if you execute it. Salespeople who plan their business by blocking time (step 4) are much more likely to take action. Consistency is the key. What we do every day is more important than what we do once in a while.
I recently moderated a panel of four high achievers. All of them had followed the Ninja Installation training. I asked them, “What was the thing you took away from the training that helped you the most? To my surprise, all four said the same thing: The Ninja Five Daily Habits. This is a morning routine consisting of:
- Gratitude, affirmations and positive readings to boost your positive energy.
- Show up for work and block out your day and week to stay on your schedule.
- Writing two personal notes
- Focus on your Hot List (people who want to buy or sell in the next 90 days.)
- Focus on your Warm List (people likely to want to buy or sell next year.)
As one of the $60 million producers told me, “When I start my day with these five activities, I’m having a great day. When I do it regularly, I have a string of good days and I have a great week. Great weeks lead to great months and great months lead to my best year yet!”
What would your business or office look like if everyone had their best year yet? If you’re a salesperson, what would it be like if you had the best year of your life?
When I go over these five pillars with sales associates, owners, and managers, they seem to have insight and clarity. They stop being confused and afraid of disruptors and new technologies. They begin to focus on their relationship building skills, empathy, and finding ways to create a WOW! experience for their customers.
Most customers are not looking for an app or algorithm to help them. They want an empathetic and trusted advisor. Provide this level of service, and our future is very bright!