Learn a simple yet effective business planning technique that will help you gain clarity on where you currently stand, where you want to go, and what you must accomplish to get there.
The majority never plan, so most fail. Without knowing where you stand and where you are going is like the captain of a cruise ship stepping on the gas without any thought as to where they are headed…
Step 1: Determine Your Highest Priority Goal
The most important step is establishing a specific and measurable goal. Your priority goal may be the amount of transactions you want to close, or the amount of money you would like to make for the year. For the example below we are going to base our business plan on the number of transactions we would like to close for the year.
Goal: 50 Closed Transactions and $400,000 GCC
Step 2: Breakdown Goal Into Actionable Figures
Saying you want to close 50 transactions is only a starting point. We need to break this goal down further into specific steps starting with the amount of contacts you need to make, the amount of appointments you need to book, the amount of appointments you need to keep, the amount of contracts you need signed, the amount of escrows you need to open that will ultimately determine the amount of escrows you need closed.
Congratulations! You are taking specific action that is going to transform your real estate career into a viable, producing business that can provide you and your family with a sustainable income stream for many years to come.
We have broken down business plans into a science based off the law of numbers and averages which we have outlined below. These will serve as a foundation for our plan. All figures are annual targets required to hit our goal.
Every closed escrow requires us to talk to 100 people, book 3 appointments, and meet with 1.7 clients to perform a consultation. These figures are predominantly based on obtaining listings, however when working with buyers (which are easier to find) your average consultation appointments to escrows will vary from 5+ depending on your prospecting methods.
Contacts for the Year: 5,000 Contacts
Appointments Booked: 151 Booked
Appointments Kept: 83 Kept
Contracts Signed: 58 Contracts
Closings: 50 Closed Transactions
GCC: $400,000 Commission Earned
If you take this a step further, break these numbers down into sequential goals based on the amount of days, weeks, and months that you will work for the year, giving you detailed, specific, and measurable weekly tasks that you are accountable for in order to hit your goal.
Step 3: Develop 5-5 Tasks
Your 5-5 tasks include determining your 5 main goal priority tasks that will help you reach your main goal, in addition to 5 daily tasks that must be accomplished in order to reach your weekly specific goals.
5 Main Goal Priority Tasks: 1. Organize SOI and client database into CRM for weekly growth. 2. Participate in weekly role playing and prospecting blitz groups. 3. Conduct 3 open houses per week. 4. Develop and work consistent weekly schedule. 5. Sell 5 homes per month.
5 Daily Tasks: 1. Call 10 SOI daily and ask for help with referrals. 2. Door knock 50 doors per day. 3. Cold call 100 FSBO per week. 4. Cold call 100 Expireds per week. 5. Prospect Monday through Friday from 9:00am to 12:00pm and make 25 contacts per day.
Step 4: Track Results
Setting a goal is only a part of what is required to get results. Daily action steps towards your goal and tracking your results are crucial for growth. We use a DTR, also known as a Daily Tracking Report ℠ which tracks the amount of hours prospected per day, contacts made, appointments booked, appointments kept, contracts signed, listings taken, escrows opened, and escrows closed. This will help you measure your results, and provide vital information that will help you project future business.