Do you know that old saying that you can’t know where you are going if you don’t know where you’ve been? It’s not just a line from a Country and Western song. The truth is, in real estate, the mighty business plan is the key to success.
I’m a huge fan of plans. In fact every year I write down about ten things I want to achieve. I keep that list close to me at all times . If you know me, then you know I have pretty lofty goals so if I achieve 5 or 6 of them, well, that’s a win. But a well formulated plan can help your business dramatically. It can balance your budget, help determine where to spend your money, how much prospecting you have to do and, of course, help you figure out how hard you have to work to achieve your desired income.
If you are new to real estate, a business plan will put you on track quickly as long as it is comprehensive enough, but if you are a veteran, than the good business plan will help you review your successes and failures of the past year and hey, we all want to learn from our mistakes don`t we?
So my 10th task asked agents to go over the business plan in detail. Now, a business plan is not much good to you if it is filled with unattainable goals so part two of the task includes talking to a manager or, at the very least, someone who can ask questions or poke holes in your plan. Is your plan reasonable and attainable?
I have included our company business plan for you to review. Feel free to copy or print it out. It’s pretty comprehensive and not something that can be completed in a few minutes.
I hope you take the time to work on your plan this year. Don’t just go through the motions. Be as honest with yourself as possible. I guarantee that creating your plan is just another step in achieving success in our business.
mark mclean is the Broker/Manager at the Bosley Real Estate Queen St W office and President-Elect for the Toronto Real Estate Board. The opinions expressed here do not reflect the opinions of TREB or Bosley RE.
I think I may have come to the proverbial end of the road when it comes to my blogging on prospecting. I’ve said it often enough, prospecting and running are very similar. So on yesterday’s run, my 89th of the year, I decided to figure out how much money I would have made if I stayed true to my rules on prospecting.
Imagine this; Your goal was to contact 10 people for every time I ran. Just so we are clear, when I talk about prospecting I’m talking about meaningful real estate discussions that last more than a few minutes. So you’ve talked to 1000 people (100 runs times 10 people).Now, the general rule of thumb for prospecting is that every 50 meaningful conversations will get you a buyer or a seller contract. That means that you signed 20 contracts over the course of the year. Guess what? If you work in Toronto you are doing better than 3/4’s of all TREB agents already. For simple math lets assume that the average commission is $5,000 because, as a new agent, you are doing a few rental deals in there too. This year you have made a pretty decent living.
Prospecting is a simply thing to do once you sit down and put your mind to it. As I have found, it is much harder to do it consistently. Just like running, there are a lot of excuses for not getting out of bed at 5:30 in the morning and hitting the pavement for an hour. What I have learned is that prospecting, like running, can be habit-forming and that is the true key to success. Sure, lots of things can get in your way, and it’s easy to roll over and go back to sleep. The hard part is to take the first step. You get out of bed one leg at a time, right?
So what’s the goal for the next year? How about keeping it simple. Hear’s the funny thing about consistent prospecting that is a real bonus for the following years. Remember those 1000 people who you talked to? They are still prospects. You still have 980 people who you didn’t sign a contract with, so in year two you can add them into your next 1000. You are bound to pick up a couple from the first 1000 and another 20 from the next 1000. See how it works? It’s the sales funnel in action!
Well, I’m going to keep running as long as my knees and back hold up. Now I just have to think about other things to blog about. Any ideas?