Creating and implementing a solid business plan as a real estate professional is critical to your future success. In an industry with a high degree of unsuccessful agents that drop out, having that road map as a guide it an important factor for success. Most people confuse a goal with a plan or they list a few objectives on a sheet a paper and put it in their top desk drawer, never to be looked at again.
If the goal is the means to the end, there are three main components that all agents and brokers need to consider for implementing a strategic business plan. It will assist in reaching that commission / revenue goal and track your progress along the way. And do not get confused that creating a business plan will create success. It must be well thought out and you must be diligent in the execution of the plan.
• Reachable goals – One way to set yourself up for failure is to set a goal that is unattainable. If the goal is not realistic that not reaching that goal is a reminder of failure and not success. Looking out to the future to reach a goal with annual progress is a better method. Also an understanding of the real estate industry and the average and even above average income level currently obtained by active real estate professional is a great place to start.
• Accountability – To execute on a well thought out business plan, accountability is necessary as it must include measurable results and activity management. It also allows you to focus on the activities that are providing successful and yielding results vs. those that are unproductive.
• Update – Conduct periodic review of your plan and adjust based upon the results. No plan should be set in stone as a business plan is a road map for the future and can not be predicted with certainty. Compare your results to the plan and be flexible to make adjustments. Remember your results are due to your efforts but sometimes external factors out of your control.
Newer real estate professionals may need to work with other agents or their real estate broker to gain information that will allow estimating realistic activities. There is no substitute for quality experience and you will friend most professionals are more than happy to help. Local market conditions, average home prices, etc. all impact your business plan. Visualize your success and it will happen with a great business plan.