Presentation on theme: "Business Planning Been there, Done That-Got the T-Shirt."— Presentation transcript:
Business Planning Been there, Done That-Got the T-Shirt
Looking Back at 2008 Reasons to Fail 1.) No buyers 2.) Slow Opens 3.) Unorganized 4.) Poor attitude 5.) No data base Contact-mgmt 6.) Im not lucky What you should do 1.) Look for buyers 2.) Find a high traffic open 3.) Get organized! 4.) Be positive everyday! 5.) Work on your data base 6.) Be prepared Its your choice! Everyday you wake up make a plan of action and follow through! Get something accomplished!
What can a business plan do for you? No plan…no progress Its an outline for your goals, aspirations, expectations and financial needs A well-developed plan is your most important business too. Step-by-step it translates your ideas into profitability
Pros of being an independent contractor Opportunity to make more money than as an employee Being your own boss Job Security Able to put your ideas into practice Personal satisfaction of creating and running a successful business Able to work in a field you really enjoy
Cons Possibility of financial risk May have to work long hours Income is not steady No healthcare benefits Will have to perform many business disciplines
Benefits of a written plan An increased chance of business success A reality check A timetable that helps you coordinate all the diverse activities you need to employ A vehicle for tracking the progress of your business. A blueprint against which you can adjust activities to achieve your goals A starting point for future planning
Assess Where Youve Been Damn GPS!
HISTORICAL PRODUCTION, EXPENSE AND ACTIVITY ANALYSIS PRODUCTIVITY YEARNumber of Listings Taken Number of Listings Sold Number of Buyer Controlled Sales Total Volume Average Sales Price ACTIVITY YEARNumber in Sphere List Mailers/YearNumber in FarmMailers/YearOpen Houses/Year INCOME/EXPENSE YEARYEAR Gross IncomeGross Income Annual ExpensesAnnual Expenses Expenses as % of Gross IncomeExpenses as % of Gross Income Net IncomeNet Income
YEARGross IncomeAnnual ExpensesExpenses as % of Gross Income Net Income
SELF QUESTIONNAIRE Answer YES or NO to the following questions: Do you consider Real Estate your career?_____ Did you meet your financial goals last year?_____ Did you meet your financial requirement last year?_____ Would you work for a company that is not making a profit?_____ Would you want you as a business partner?_____ If you were an employee and could be fired, would you work differently?_____ If you were a manager, would you require a minimum monthly production?_____
EMPLOYER REVIEW If you were the boss and had you as an employee in your firm, how would you rank: X one box for each categoryExcellentGoodFairPoor Attendance; worked full days Attention to detail Knowledge of area/product Increase in business/production Client satisfaction Does this employee deserve a raise? Should this employee be retained? Does this employee need a performance improvement plan?
Figuring your commission Your average home sale price ______ Times your average commission rate ____ Less Franchise fee _____ Times your split (65%)_____ _______ = Your average commission
Plan your time commitment 52 weeks/year less_____weeks vacation = 7 days/week less ____ days off/week = ____ weeks times ____ days/week = What time will you go in to work? ________ How long is your lunch break? ________ What time will you leave work? ________ Does this add up to at least 40 hours/week? _____
Lets do the math
Business card math I will hand out just ____ business cards/day. Only ____ days per week. Only ___ weeks per year. If I have only a 1% conversion rate. With my average of $________ transaction. I will make $___________
Open house math I will do ____open houses/mo. X ____ Mo= _____ O.H. this year ____ groups/o.h. X ____ = ____ groups 10% capture rate X ___= ____ clients =========== ____Clients X my avg. comm = $________ Income
Sphere of income math The Premise: Everyone you know, knows at least one person per year that has a real estate need. Only 50% of your SOI will send you a lead. Only 50% of those leads are viable.
You have ____ people in your SOI = _____ During 2009 ____ % (50%) will provide me With the name of a potential buyer or seller X 50% ========= Potential Leads = ____ However only ____ % (50%) of those leads are viable. Then I have X 50% ========= Potential Transactions = ____ Potential transactions X my avg. commission = _______ ========= Potential Annual Income $ __________
Floor call math I will sit floor ____/month. X ____ Months = ____ Floor call this year ____ Calls/floor time X ____ = _____ Calls 10% Capture Rate X ____Calls= ____Trans. ____ Trans x My Avg. Comm. = $_______ Income
Farm math I will contact my farm ____ times/year. 1% capture rate x _____ houses in farm = ______ Trans. _____ Trans. X $ my avg. comm. =$_______ Income
fsbo math If I can convert one FSBO per _______ 1 X my average commission= = $_______ Income
Expired listing math If I convert one Expired per _________ 1 X my average commssion= $______ Income
Planned income 2009 SOI Income = $ 7 Second Pres. Income = $ Open House Income = $ Floor Income= $ Farm Income = $ FSBO Income= $ Expired Listing Income = $ Lease Income= $ ========================== Annual Income= $
Strategic Marketing Plan the how to or action plan to meet your identified financial goals
s.m.a.r.t. Goals must be Specific Measureable Attainable Relevant Trackable
Written goals What When How Where Why
Write a goal now
Example What: I will contact my farm 1 X per month. When: By the 15 th of each month. How: Newsletter each month by if possible or by personal delivery to door. Where: My subdivision. Why: $ Income I
What: I will increase my personal exposure to my farm. When: Every quarter How: 1 st qtr: Deliver for-get-me-not seeds 2 nd qtr: Deliver 4 th of July flags 3 rd qtr: Deliver local sports team schedule 4 th qtr: Annual Food Drive Fliers and p/u times Where: My subdivision Why: $3,000 Income
What: Increase my SOI by 25 people When: By mid-year. How: Join Book Club Group and Bunco Group Where: Book Club at local library Join Marys Bunco group. Why: $15,000 increase in income
Example What: Give myself a raise in my commission! When: Beginning Now How: 1. No more listings discounts 2. Take 7% or 8% listings on Short Sales 3. Push back on lenders trying to lower commission Where: at listing presentations; at short sale negotiations Why: $5000 Raise