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Archive for free business planning
At the end of each year, I dedicate these blogs to all my real estate friends who are doing business plans.
Don’t Start at the End of the Planning Process!
We managers have heard these questions many times: “What actions should I put in my business plan for next year?” “What should I do?” “Give me what to do so I’ll do everything right next year.” Unfortunately, that’s doing your business plan backwards. It’s like starting at the end of a piece of music and playing it to the beginning.
What You CAN ‘Copy’ for a Great Business Plan every Time
Another thing you may have heard from agents: “Give me a business plan.” or “I want to use _______’s plan.” That’s another big mistake. It’s your business and it needs to be your plan. However, what you can copy is the process for a great plan. In fact, Dwight D. Eisenhower (former US President), said, “The planning is everything. The plan is nothing.” What that means is that it’s the thought process that’s important. So, use a planning process that takes you through the necessary steps. (See Beyond the Basics of Business Planning, for an online business planning system based on the strategic planning process).
10 Questions to Ask Yourself so You Create the Right Action Plan for You
Recently, I did a business planning webinar for an association. I provided attendees with 10 questions to ask themselves. The answers to these questions provide the guidance needed to create that effective, individualized business plan. Here are those questions for you to use as you create your plan. [pdf-embedder url=”https://getarealestatecoach.com/wp-content/uploads/2020/11/Strategic-Business-Planning-10-Questions-to-Ask-1.pdf” title=”Strategic Business Planning 10 Questions to Ask”]
Let Me Help You Create that Plan
Contact me to find out how I can educate your company or association on business planning and support and coach you. Give me a call at 425.392-6914 or email me at carla@carlacross.com. I can do a webinar series for you, supply you will all the planning documents, and help your leadership coach your agents–at a very affordable cost with big pay-off for you.
During December, I’m focusing my blog on business planning, as well as in my managers’ blog, Management in a Minute. Look for ready to use checklists, processes, and systems. Let’s make awesome plans for 2021!
Today, real estate agents capture much more of the gross commission dollar than ever before. At the same time, they must become real businesspeople, because they must allocate some of these dollars to marketing—to increase their business. But, how do you know how to spend those marketing dollars?
Here are two basic principles of marketing dollar allocation
Principle One. Spend a proportional amount on your best source (s) of business—it will beget more business (your best source of business is from your past clients and people who know and trust you).
Most Agents are Not Spending Their Marketing Dollars Right
A recent study showed that agents spent the largest amount of their marketing dollars on direct mail, advertising, and the Internet. Yet, the majority of their business came from traditional ‘people to people’ sources
•IVR Technology (interactive voice response)–the only ‘technological’ lead generating source
Repeat Business
•Open Houses
•FSBO/Expired Leads
•Face-to-Face Networking
Do you know how much you spent on your best source of business last year?
Only one percent of the agents do. That means they aren’t treating that group of people as a ‘target market’. You must segregate your best sources and allocate funds directly to marketing to them. You must make a marketing plan directly to these people, and attach a budget to this best source.
How much Money Should You Spend?
Principle Two. Spend between 5 and 10% of your projected income on marketing to your best source of business.
Example: If you were to project for next year that you will get 20 sales from your past clients, and that income would be $4000 per ‘revenue unit’ or $80,000, you would allocate $4000 to $8000 to marketing to that source.
Simply reviewing how you spent your 2020 and allocating adequate marketing dollars for 2021 will, in the end, save you money. Also, you’ll have something to measure and adjust.
Your Best Business Planning System
Why not step up to a real strategic plan this year? My system is the only one published internationally for real estate professionals. Check out Beyond the Basics of Business Planning. There’s a program for agents and a program for leadership. Why not create a plan to work for you in 2021?
During November and December, I’m writing about business planning, to inspire you to get your business plan done for next year. Managers, see Management in a Minute for managers’ business planning tips.
Part of your business plan should be your lead generating plan. In Up and Running in Real Estate, we teach you how to prioritize those leads. Do you know which lead generating sources were your best for this year? Have you done a review? Do you know how much money you’re spending on them?
Prioritizing those Sources
When you’re prioritizing your sources, think of these evaluations:
Easier. Which is easiest?
Some lead generating sources require a great deal of sales skill, ability to handle objections, and ability to overcome low trust (like for-sale-by-owners). I’m not telling you NOT to call on these sources. But, you just have honed those sales skills and be very tenacious.
Trust. In which sources is there the largest trust already established?
The larger the trust, the easier it is to get to a ‘close’. Also, you are much more apt to retain the customer long-term–which is worth lots and lots of money to you!
Least marketing cost. Which costs you the least?
If you’re putting money in mass media (like newspaper advertising) to gain leads, you are spending lots of money per lead (figure it out). Do you math and review to see where all that marketing money is going.
Competition. In which is there little competition from other agents?
If you calling on expired listings, along with 40 other agents, you have lots of competition. Do it, if you can be tenacious, develop a great process, and keep at it until you wear out the competition.
Return business. Which will provide you the best long-term business?
To gain return and referral business, you must create high trust and confidence. In sources where you already have a head start, you have a much better chance of creating return and referral business–which costs you much less than new business.
New! We've put Up and Running on steroids in our new online 8-week training/coaching program. Check it out!
Want management tips? See Carla's Management in a Minute Blog
