Real Estate Business Plans: Boring but Necessary
I think it’s safe to say that most agents have at least a vague notion of where they’d like to be by the end of 2018.
Whether you measure milestones in deals closed, money made or number of days off you’ll be able to take, there’s a nugget of a business plan rolling around in your head, right?
Let’s get it out of there and into a living, breathing real estate business plan – a road map to a wildly successful 2019.
“If you don’t know where you are going, you’ll end up someplace else.”
Words of wisdom from the late Yogi Berra. Your real estate business plan will act as your road map. It will let you know where you are right now and where you want to go (and how to get there) in 2019. Without it, you may just end up “someplace else.”
The basics of a real estate business plan
First, consider two myths about business plans:
- They are fixed. Many experts recommend that you revise and adjust the plan as the year goes along.
- They are based on facts. They’re not; they are mostly based on assumptions gathered from your past performance.
There are a lot of different styles of business plans and many are real estate-specific. Then, there are variations among agents when it comes to determining priorities, budget and more.
The basics, however, include:
Before refining these basics, you’ll need to create a budget.
Step number one in the construction of any business plan is the budget. After all, you need to know where you stand financially if you hope to come up with a plan for how you’ll spend your marketing, tech and other dollars in 2019.
If you had a plan for this year, use it to help you build next year’s. If you lack a previous business plan, you’ll need to create your budget from scratch and you can find a lot of help for that online. In fact, we show you how in our 2019 Real Estate Business Plan.
Find other blueprints and walk-throughs to help you create a budget at:
- Inman.com – We love this walk-through of the basics from Dani Vanderboegh.
- Freshbooks.com – Offers a 5-step budget-creation plan.
- sba.gov – Good advice here from the Small Business Administration
By the way, not only is your business plan not static, your budget isn’t either.
Financial experts agree that you should revisit your budget at least monthly. As your pipeline changes, so will your finances. Good on you if that pipeline is full of spot-on real estate leads. But, you may be falling short of your projections and the sooner you know that, the better.
New agents – don’t forget to budget for the tools you’ll need to purchase. These include:
- CRM (Customer Relationship Management) – Learn how to choose the right CRM
- Website/Blog – It’s not enough to have a spot on your broker’s website, you need your own, with your own branding. Make sure it’s optimized for mobile, that you have local IDX and that your site integrates with your CRM.
Setting business goals for 2019
Use your budget to help determine your financial goal for the new year. How much do you want and need to make? That’s the magic number from which your strategies and tactics will flow.
This is where it gets somewhat complicated, and the point at which many real estate agents give up on their business plans. To determine how you will reach that financial goal you’ll need to know:
- How many listings/sales it will take to reach that number.
- Your conversion rate so that you can figure out how many leads you need to generate each month to get those listings and sales.
For new agents, your conversion rate is the number of clients you gain divided by the number of leads you generated each month, multiplied by 100.
For a quick, personalized breakdown of sales and leads you’ll need to hit your goals, check out our Lead Calculator.
Your conversion rate will no doubt differ from other agents, but it’s an important number.
The strategies required to get you there
Your 2019 business plan shouldn’t be a copy of 2018’s. Not only has technology advanced but the market is most likely going to look a lot different next year. The long, wonderful-but-crazy sellers’ market appears to be morphing.
So, the strategies that worked this year may fall short in 2019. Our 2019 business plan was created to help you learn new strategies (and dust-off old ones that have been lying dormant) to succeed in the coming year.
Here, Million Dollar Pipeline Program coach, Sheldon Rapoza dives into the challenges agents face developing the right routines, along with importance of having and documenting a business plan as we approach 2019, to ensure a successful future.
Download your free 2019 marketing plan to get access to:
- Worksheets for setting marketing goals, strategies, and tactics
- Digital marketing toolkit and cheat sheet
- Audit of your current marketing channels
- Event marketing ideas for every season
- And more!