“If one advances confidently in the direction of his dreams, and endeavors to live the life which he has imagined, he will meet with a success unexpected in common hours.” – Henry David Thoreau
What’s the fastest way from point A to point B? A straight line. Your business plan is your straight line. It serves the purpose to keep you on track towards your goal when the universe is pushing you in every other direction.
Writing a business plan as a new agent is a crucial part of a successful start in real estate. Planning your goals and how to attain them can help you stay focused, and inspired. Everything does not always go as planned and you may not know exactly where you’ll be a few years from now, but that’s okay. The business plan is your guide to pushing yourself forward. Follow these steps to help you organize your plan for the future.
Step #1 Goals and Inspiration
You’re finally your own boss, calling the shots and making decisions. Now the question is what do you want to do with this entrepreneurial lifestyle?
To answer this question, you have to gain an understanding of what you truly want. Start by digging deep into your motivations and internal reasoning’s. Why did you want to become a real estate agent? Was it to make a lot of money? To support your family? Are you passionate about houses and real estate? Think about what ignites you and that will be your fuel. It’s important to stay driven because if you don’t have a good reason to focus or work hard, then you won’t continue to do it.
Now it’s time for your career goals. Sit down for a few minutes and think about what you want your career to look like in 5 years. How much money do you want to be making? What kind of achievements will you want to obtain? Write them all down, and then begin to dissect them into smaller more actionable mini goals.
Step #2 Planning
Once you know what you want and what motivates you, it’s time to figure out how to get there. Break down your goals into smaller actionable steps and do some research to figure out how to complete each one. You want to be as informed as possible when going through each step so you’ll know how to tackle them when the time comes. If they don’t seem feasible yet, then keep breaking them down until one does seem possible. You can accomplish anything, one step at a time.
Make sure you’re setting realistic timelines as you research and plan your steps. One of the key set of metrics to look at in real estate are production numbers. To do this, we have to reverse engineer the real estate sales process starting with the closing.
To earn commission money when looking at real estate sales, you have to to have a closing. In order to have a closing, you have to have a contract. Before you have a contract, you must first meet with your client on an appointment. And finally, before you can set an appointment with a client you must have a lead.
As illustrated in the funnel above, not all leads will turn into an appointment, just as every appointment won’t turn into a contract. And even when you have a contract, they don’t always close.
Once you understand your real estate sales relationship funnel, you can put some numbers behind it, to figure out how much input (leads) will give you your desired outcome (closings).
Below is a calculator you can use to help understand the targets that will allow you to achieve your larger goals.
Step #3 Action
Once you have laid out your plan that will power your funnel, the most important part in your business plan will be the follow through. You have your motivation, your goals, and your plan on how to reach them. What once seemed so far away and unlikely is now clearly possible and actionable. So put some action behind your plan and begin to cross the tasks off your list. Remember to stay coordinated and consistent. You didn’t do all that research and planning to remain dormant.
Writing your business plan as a new agent can help you immensely when launching your career. Separate yourself from the average by staying focused, organized and calm. You can achieve anything you set your mind to.