Tips for building your 2023 real estate business plan
When it comes to real estate, business planning is one of those activities that agents look down on or don’t know where to start. We’re told it’s important, but we don’t know exactly why.
In my experience, agents who set goals and execute them increase their business by 25-50%! This is no joke and nothing to be taken lightly.
The purpose of a business plan is to get where you want to go. It’s your roadmap. Think of it this way, let’s say you want to go to Disney World, you wouldn’t get in your car and drive around aimlessly hoping to stumble upon it. The same goes for your business. Success happens when you have set your plan.
There are seven components to a business plan:
Know your audience.
A good friend told me, “Your niche is defined by who you are and what you do.” Don’t think about it too much. Look around you and you will see who you should serve. Also, don’t try to be everything to everyone. You’ll attract the wrong customers, get frustrated, and burn out quickly.
Perform a SWOT analysis.
Your SWOT (strengths, weaknesses, opportunities and threats) analysis helps you understand where you stand in the market relative to your competitors and where and how to invest your time, money and resources most effectively. Your strengths are the things you do well. Your weaknesses are the things you procrastinate on. Think about how and to whom you can delegate these things. Your opportunities are openings for positive change.
Market shifts, lifestyle shifts, and demographics can all present opportunities that can have a significant impact on your success. Threats are anything that is beyond your control and has a negative effect. Inflation, interest rates, a pandemic or a new competitor could all be seen as threats. Often threats can be turned into opportunities. A changing market, for example, a market where interest rates are rising, is an opportunity for buyers who want to have less competition and more bargaining power.
Do a Stop/Start/Continue exercise.
This is your chance to reflect on what worked and what didn’t work last year. This exercise identifies strategies that save you time and increase your overall return on investment. Keep doing the things you love and attract the right customers to your business. Stop activities that had a negative ROI. Start activities that might bring you better results. Look at your list of ideas opportunities.
Know your numbers.
Numbers tell the story of your business. Expenses, Source of Activity, All Closed Deals, All Closed Volumes, Gross Commission Revenue, Average Selling Price and Average Commission/Trade, Average Selling Price and Average Commission/Trade All Tell a story about who you serve and where your strengths are. Knowing your numbers helps you identify areas to focus your efforts on in the coming year.
Set realistic goals.
I strongly believe that setting a personal goal is the best way to ensure you maintain balance in your business and your life. Start by selecting your income goal, then choose your personal goal.
Define business creation activities.
This is where the fun comes in. Write down everything you can do to achieve your goals. I like to put activities into three buckets; revenue generation, marketing and personal growth.
Finally, be responsible. Our company can be lonely, which makes it easy to be distracted. Find an accountable partner or, as a friend suggested, your own board of directors. These are people who aren’t afraid to challenge you and push you. Blocking out time and creating routines are also great ways to stay accountable.
Achieving your business plan will give you a sense of accomplishment. It’s the first step to success, motivating you to take the next step or complete the next task. Your state of mind will be essential during the year. There will be bumps in the road and maybe even detours. When you meet them, take a deep breath, make adjustments, and keep moving forward. When you do this, you will be succeed and be able to look back and be proud of your accomplishment.
Christine George is co-founder of Post & Beam Creative.