Tips for creating your real estate business plan for 2023

When it comes to real estate, business planning is one of those activities that agents either despise or don’t know where to start. We’ve been told it’s important, but we’re not exactly sure why.

It has been my experience that agents who set goals and execute on those goals increase their business by 25% to 50%! This is no joke and nothing to be taken lightly.

The purpose of a business plan is to get you where you want to be. It’s your schedule. Think of it this way, 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 applies to your company. Success comes when you create your plan.

There are seven components of a business plan:

Know your listeners.

A good friend told me, “Your niche is defined by who you are and what you do.” Don’t think about it. Look around and you will see who you should serve. Also, don’t try to be everything to everyone. You’ll attract the wrong customers, you’ll get frustrated and you’ll quickly burn out.

Conduct a SWOT analysis.

Your SWOT (Strengths, Weaknesses, Opportunities and Threats) analysis will help you understand where you stand in the market compared to your competition and where and how to most effectively invest your time, money and resources. Your strengths are the things you are good at. Your weaknesses are the things you put off. Think about how and to whom you can delegate these things. Your opportunities are openings for positive change.

Shifts in the marketplace, lifestyle, and demographics can all present opportunities that can significantly impact your success. Threats are anything that is beyond your control and has negative effects. Inflation, interest rates, a pandemic, or a new competitor could all be seen as a threat. Threats can often be turned into opportunities. A changing market, for example a market with rising interest rates, is an opportunity for willing buyers to have less competition and more bargaining power.

Do a stop/start/continue exercise.

This is your opportunity to reflect on what has and hasn’t worked over the past year. This exercise will help identify the strategies that will save you time and increase your overall return. Continue activities you love and attract the right customers to your business. Stop activities that had a negative return on investment. Start activities that could bring you better results. Look at your list of opportunities for ideas.

know your numbers

Numbers tell the story of your company. Spend, Business Source, All Transactions Completed, All Volumes Completed, Gross Commission Earnings, Average Selling Price and Average Commission/Transaction, Average Selling Price and Average Commission/Transaction all tell a story about who you serve and where your strengths lie. Knowing your numbers can help you identify areas to focus your efforts on in the year ahead.

Set yourself realistic goals.

I firmly believe that setting a personal goal is the best way to ensure you maintain balance in your business and your life. Start by choosing your income goal, then choose your personal goal.

Define business building activities.

This is where the fun comes in. Write down all the things you can do to achieve your goals. I like to divide activities into three buckets; Revenue generation, marketing and personal growth.

Be accountable.

Finally take responsibility. Our business can be lonely, which makes it easy to get distracted. Find an accountability partner or, as a friend suggested, your own board of directors. These are people who are not afraid to challenge and push you. Blocking out time and creating routines are also great ways to stay accountable.

Completing your business plan will give you a sense of accomplishment. It is the first milestone towards success and motivates you to take the next step or complete the next task. Your mindset will be critical as you move through the year. There will be road bumps and possibly even detours. When you encounter these, take a deep breath, make adjustments, and keep moving forward. if you do this You will be successful and be able to look back and be proud of your achievement.

Christine George is co-founder of Post & Beam Creative.

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