Imagine every man, woman, and child you know standing side-by-side, holding hands and behind them everyone they know. On average, 7-10% of these people will have real estate needs over the next 12 months… whether you are their REALTOR or not!
Your new business plan needs to answer three fundamental questions:
1) What do I want?
2) When do I want it?
3) What do I need to change to make it happen?
It shouldn't be viewed as a number crunching exercise but more like an autobiography to be reviewed and revised as you continue to discover what is working and what is not working. Like constructing a building …small little pieces laid one on top of the other with skill and care turns into a strong structure to provide many years of shelter. Your business plan is your foundation to grow on.
Step 1: What is Your Business’s Purpose?
"The Purpose of your business is to create “A” customer." (over and over and over again!)
Your immediate survival and your long term success is dependent on you succeeding in generating a sufficient number of qualified clients. You must commit consistent daily time and energy to creating future customers who are "ready willing and able".
Despite the seeming wisdom of advertising in the local newspaper or “farming” a neighborhood, this method doesn't create enough qualified clients because they don't need you and there is too much clutter for your message to break through. In short ...They don’t perceive any “value” in your message!
Step 2: What is Your Perfect Client?
No client exists until you create them. So, why not improve your chances for long term success by rejecting the notion of "any client, anywhere, anytime" in favor of attracting the perfect client for you...Your Plan should include the answer to this question “What would My Perfect Client Profile Be?”
Step 3: Define Your Business Model
Never lose sight of your ultimate target, LISTINGS! It's just good business to create a strong listing inventory. The faster you build a base of marketable listings, the more likely you are to survive. The old adage of “list to last” will always ring true …look at most successful agents in your area …I will bet they carry a big inventory of listings year round.
Step 4: Create Opportunities
Real estate listings are a natural consequence of predictable life events ... Marriage, birth, career changes, divorce, injury or illness, aging, and death carry with them vitally important decisions and forward planning regarding real estate.
71 percent of home sellers list with an agent that was referred to them by a trusted source. Your purpose is to be your clients' trusted advisor while they are considering the impact of these life events. You want to be “their REALTOR” long before one of the events occur … You don't want to be in the position of competing with other agents, days before the decision.
In today's market I see most REALTORS clamoring for a qualified buyers to sell a house to right now ...TODAY!....You want listings ... Get the listings and then you'll get the buyers as well.
Step 5: Analyze Your Competition
What they are …Who they are …What value do they offer the consumer?
Most consumers are blinded to a REALTORS “value” by the commission they charge…Then once they are committed by contract, and the fog starts to lift, they start to get a clear picture of what skills the agent brings to the transaction.
Become educated to all the alternate business models in your market place and be ready to educated buyers and sellers on why your services are worth every penny ...and then some!
Step 6: Set realistic, specific and measurable goals.
One thing’s a certainty, you'll need to earn money to pay your bills and provide for the things you want in your future. Not all goals are monetary... but those which have a monetary component need to be reflected in your budget. Make sure your business plan incorporates the appropriate amount of activity necessary to achieve them. Goals are the big picture motivators ...An example would be earning the amount of money my budget calls for.
Objectives are the things you must achieve to attain the goal such as take 35 marketable listings per year.
Step 7: Define Your Target Market
Every year, seven out of 100 homeowners sell their homes. If you market to 100 people and are 100% effective in capturing and sell the full 7% ... (highly unlikely), you won't earn enough to afford the median priced home in your area.
If your objective is to list the properties of the family, friends, neighbors, co-workers and acquaintances in your Book of Business (BoB), if your market is a community of 100’s who will combine to sell 100's of homes every year. By capturing a small percentage of these Buyers and Sellers you'll still be able to generate a healthy income.
Marketing to, and effectively growing your BoB is the most efficient way to increase the number of referrals you receive every month.
Your target market is the combined spheres of influence of every individual for whom you have a name, address and phone number. The foundation of your business will be the relationships you create with-in your BoB.
Step 8: Develop Your Strategy
Meet people. Make friends. Ask for referrals. Give service, and ask for referrals again.
It’s that simple!
Step 9: Your Marketing Plan is to Influence Your BoB
Everything you need to influence the thinking of a few hundred people is readily available to you. Treat each of those few hundred people as potential real estate investors …(because they are) …and teach them about the benefits of planned real estate ownership.
Consistently send them real estate information they find valuable, which in turn makes you appear more valuable. Most consumers won't know what is really happening in real estate unless you tell them …(CNN still can’t get it right!) They will be grateful to you for enlightening them and will sing lofty praises of you to all who will listen.
And even better, if you get a referral …go the extra mile… so when people talk about their events which are occurring (or gossip for short), they will recommend you as a person to talk to. Not a real estate “salesperson” but someone to confide in…a trusted advisor.
Step 10: Launch Your Plan
Just go out and do it!
Don’t forget to Review, Analyze, Re-launch
What gets measured gets done. As a business person you must put in place a measure of accountability. Many large corporations review their progress annually and revise their plans accordingly.
You have an advantage where you can review your progress weekly ...and have fifty two opportunities to correct your course. Let your business plan be your career G.P.S. let it show you the way.
I hope this info helps you when building your business plan. If you have questions about the many advantages of being an associate with The Fonville Morisey Brier Creek Office, please do not hesitate to call…
Eddie Brown ©2011