It is business planning season.
This is the time of year when everyone gets excited and talks about the goals they will hit next year. Everyone out there who wants to wait until December—I have bad news for you. The real estate New Year starts November 30.
Think about it: it takes that long for transactions to close. So, this is the time to plan your business for the next year.
Here are four basics steps to develop a real estate business plan to help you reach your goals.
#1 Set Specific and Measurable Goals
First, your goals must be specific, measurable, and tied to math.
If you can’t measure your goals, you won’t know when (or if) you hit them.
For example, ‘Selling more homes’ is not a goal because it is not specific. Here’s how to turn it into a goal:
Sell 30 homes with an average sale price of $425,000 and a minimum commission of 2.5% on every home sold.
That turns a vague statement into a specific and measurable goal. And that’s the kind of thinking that will lead you to achieve your goals because there is no margin for error.
#2 Write it, Declare it, Keep it Visual
Do you have your plan written down? Have you declared it to others? And do you have it up and visual?
Many people come up with plans, but they’re stuck in their heads. They don’t tell anybody about it, so there’s no accountability. The plan has to be written. Not only that, but you should go through several drafts of your plan to make it more specific and make it something you’re ready to look at every day.
When you look at your plan every day, it gives you your target to hit as you work through the plan.
That’s number two: Write your plan, declare it to others, and keep it visual.
#3 Make Room for Change
The next step is to remember it’s a changing document.
It can be changed at any time. And there should be milestones where you’re constantly tracking and measuring your progress.
That could be as simple as Gary Keller’s 411 Productivity Tool, where you have your annual goal at the top, your monthly goal, and then plan out week one. From there, you can see how week one goes and adjust the following weeks to ensure you’re hitting your numbers.
You won’t sell a home every three days. It doesn’t work that way. Appointments and sales come in bunches. So while we’re planning for results, it all starts with the activities influencing your objectives. Consistently hitting the objectives will get you the results.
A lot of people want to jump right to the results, and it doesn’t work that way. You must constantly change your plan, adjusting and measuring as you go through.
#4 Determine Three Key Activities to Drive your Goal
Once you have your goals, determine three key activities and behaviors to drive each goal. What are the three key initiatives in your business that you’re going to hit every single day or every single week?
The number three is intentional. You won’t get anything done if you have zero key activities. But on the flip side, if you have too many key activities, you’ll be pulled in too many directions…and won’t get anything done. So three is the magic number.
So how are you breaking your goal down into three key activities?
For example, if you want to sell 30 homes a year, you could use the following three key activities:
- I’m going to have 15 conversations a day, and I’m going to go on four new appointments a week.
- I’m going to roleplay my scripts and presentation once every day, five days a week.
- I will gain more knowledge of my market by reading X websites for 20 minutes a day.
The activities can vary, depending on what you need to work on. But no matter what activities you choose—they have to be specific, and they have to be measurable.
Take Control of Your Real Estate Business Plan
Your business plan, and each of your three key activities, is something you have 100% control over.
Use these basics to draft your plan now. The key is to then look at it every day.
Set your daily and weekly targets, which will get you to a place where you’re building confidence. You’ll start to see that you are working closer to your goal, and most importantly, you’re accomplishing what you want to accomplish.