A real estate business plan is used to plan out what action needs to be taken to achieve your professional goals. For Realtors, a business plan will take into account incoming commission income and fixed expenses like desk fees, real estate board dues, and car payments, to determine how many deals you will need to close in order to reach your financial goals. It will also spell out in detail what steps you need to take to achieve your goals.
So why do we need to have a real estate business plan? For agents, a business plan is not only a road map to your professional and personal development, but it also helps keep you accountable. I like to compare it to a road map…literally. When you’re driving somewhere and you know where you’re going, you don’t even have to think about it. Now try to remember the first time you ever drove a car without GPS or a map. You were probably a little nervous, second guessing your skills, and might have even gotten lost and had to ask for directions several times. Think of your business plan as GPS for your career. Instead of getting lost and asking for directions, you simply remember your plan and forge ahead.
Writing down your goals and how you plan to achieve them is going to help keep you accountable when you start to second guess yourself. Since you’ve already done some calculations, you know exactly what you need to do to succeed. The key is to have them written down and posted somewhere you can see them every day. Most of us are probably guilty of writing down our goals, sticking that paper in a drawer somewhere and not looking at it again until the year is over. Make sure you see them on a daily basis as a constant reminder of what you’re working towards.
Another thing to remember about a business plan is that it’s going to change. As your business grows, you may need to shift strategies and tweak your plan accordingly. For example, you may start the year focusing your efforts on door knocking and cold calling to get leads, then realize that you’re having more success with targeted Facebook ads. This is why an important aspect of business planning is to measure your results and change your business plan accordingly. It’s a good idea to set up several check points throughout the year to track your results and adjust accordingly.
Finally, when setting your goals for the year ahead, it’s important to remember to set both professional & personal goals. Personal goals can be things like setting aside a certain amount of time to spend with your spouse or kids, starting an exercise routine or even taking up a new hobby you’ve always wanted to try. As Realtors, we often set goals for our careers but sometimes forget to give ourselves something to work towards that’s not related to selling real estate. When your personal life is fulfilled, often times you will feel a trickle effect into your professional life as well. After all, positivity is usually contagious!
Learning and Development Specialist
RE/MAX INTEGRA, Ontario-Atlantic