The Business Plan for Home Hunter Real Estate is being written from scratch. Creating a blueprint for being successful in any business endeavor can be both creatively liberating and dauntingly overwhelming. It all basically comes down to planning and execution that determines whether you prosper or perish in year ahead.
Business Planning is the operating document that directs how you achieve your goals for the year. It can be very detailed or as simple as you need it to be.
My mindset is determined to take risks, commit and ensure success with this fledgling operation. However, there are days and moments when self doubt creeps in you wonder whether you have just taken on too much. That’s when I try to just put my head down and get super busy with work projects to emerge feeling optimistic and positive about what I’m doing again.
During those moments of anxiety it is especially important to refer to the business plan that you are working from. It can provide clarity on where your focus should be to ensure success, and remove the noise and distractions.
Happy New Year! It’s the end of the year, and the start of a new decade. Did you accomplish everything you set out to last year? I sincerely hope you did make forward progress on your big goals, and you’re set to crush the year ahead.
I love this time of year. It’s a slower business period in terms of transactions but that doesn’t mean it’s time to slow down. The winter is the perfect time to pause and reflect on what you did last year and analyse how successful your strategies and tactics were. With that information you can set new goals for the coming year and formulate fresh strategies to go forward.
My Real Estate Business Plan starts at the point I want to be at by the end of the year. That’s a number, and it’s commission fee income.
As a self employed independent contractor that earns income only from transactions that I have closed through my Principal Broker, I find it helpful to focus on my earning goals for the year.
That earning goal can be as lofty or as conservative as you’re comfortable with. I like to set an aggressive target to keep me driven and excited about achieving something significant with my efforts.
That number needs to take into account your living expenses, savings and investment goals, fun money, and reserves for taxes.
It’s a simple process to identify the number of transactions that you need to generate in order to meet your goal. You should already have a good idea of the average transaction value in your market of operations.
This will indicate how much commission income you generate for your Principal Broker. You will then be able to calculate how much your share of each transaction you can expect to receive.
I want to generate 15–20 transactions this year. That’s a stretch goal as my pipeline has precisely zero ratified contracts in it.
Experience with this process tells us that we need 2–4 appointments with real live breathing prospects to ensure a closed transaction. Not every appointment is successful at securing a client under contract, and each contract won’t necessarily close as things can pop-up to derail the process.
The more appointments, the more contracts that may ultimately lead to a closed transaction and being paid.
Stepping back one more step, we know that it takes about 7–8 contacts a day to be successful. A contact is a real life conversation with a prospective client. Real Estate is Informational and therefore must be originated by direct dialogue. That means meetings and more commonly phone conversations.
With 7–8 contacts the chances of securing an appointment are strong. Whether that’s an opportunity to present your listing package and marketing plan for a seller or an interview with home buyers, it takes this many contacts to stay on the pathway.
The number of phone calls required to make 7–8 contacts is variable. It’s dependent upon the quality of your prospects, your skill set, and perseverance.
Whatever it takes to achieve your goal is what you must be prepared to do if you are committed to success.
There are short cuts, but you will pay for better quality marketing leads. Your skill set in developing new and innovative lead sources also plays a role.
If you’re like me and you basically have very few active prospects in the pipeline than it’s up to you to hustle and get after the business. Work the hours, call your database contacts, target a geographic farm, work open houses, circle prospect, develop your blog and YouTube channel. Do whatever it takes to become a known and trusted resource for dependable high quality real estate services.
What are you prepared to do to be successful this year? Are you setting aggressive goals to move forward? Do you develop a Business Plan?