Your Business Needs a Foundation
If you want to be a successful real estate agent and build a solid, profitable real estate business, you need to have a plan. In this instance I’m talking about a written business plan. Your business plan is the foundation of your business. There are several pieces that you’ll need in order to build and grow your real estate business.
- A Plan
- A Good Work Ethic
Real Estate Agents Have a High Failure Rate
Did you know that studies indicate that over 75% of agents fail within five years of being in the business? That’s a huge number. Agents fail for a variety of reasons.
- No Clients
- Run Out of Money
- Lack of Training
- Lack of Motivation
No matter the reason, all of the reasons have one thing in common. Agents fail because they don’t have an actual plan to succeed. They don’t have a plan because they think being a Realtor is easy and that business will simply fall at their feet. Agents fail because they think they are smart enough to go it alone and figure out what they need to know on their own. When that doesn’t happen they run out of money, panic and go back to a “safe” 9 to 5 job. But it doesn’t have to be that way.
Non-Revenue Generating Activities
From the moment you become an agent you need to have a plan. Having a plan keeps you focused on your daily, weekly and monthly tasks and goals. I’ve seen and spoken with so many agents who do what I call “busy work”. These are activities that give the agent the illusion of working. These are activities that don’t allow their business to make money, but they give the agent a sense of working. How do you know if you are doing busy work? If you are constantly attending classes to learn how to use your MLS or researching information on buyer programs or attending real estate seminars or motivational seminars, chances are you are stuck in the busy work mine field. These are all non-revenue generating activities that can be done in off-peak hours.
Revenue Generating Activities
Revenue generating activities are about getting in front of people who might want to buy or sell real estate. It’s difficult to get clients if you don’t have a plan for prospecting. Without a plan, you are simply hoping and wishing for clients. Hope is NOT a strategy. You need a prospecting plan, which is part of your overall business plan. What activities will you commit to do on a consistent basis to get clients? There are a host of options for you to choose from:
- Attend networking events
- Make telephone calls
- Schedule coffee/lunches/dinners
- Go door-to-door
- Hold seminars
- Hold open houses
Once you know what activities you want to do on a consistent basis, write down how often you will do each activity and how many potential clients you hope to gain. Setting a goal for each activity will help keep you focused and on task. It’s important to remember that as an agent there isn’t anyone looking over your shoulder to make sure you are working. I hate to put it this bluntly, but no one cares. No one is going to check in with you to see if you have any clients. You have to be self-motivated and get out there and put yourself in a position to ask for the business. Your success is dependent on you.
Write A Business Plan
Most agents don’t have a business plan, let alone a written business plan. They’ll tell you that it’s in their head. But stop for a moment and think about everything else you have going on in your life. It’s easy for your “mental” business plan to get lost or components forgotten. Plus, without a written business plan, it’s difficult to track your progress. Each year you’ll need to evaluate what activities generated the best results for your business. If you don’t track how many calls you made, open houses you held or how many doors you knocked on, it will be nearly impossible to determine where you need to spend your time and money.
Writing Your Business Plan is Easy
Writing a business plan does not have to be exhausting and painful, but it does take some thought.
- Where did your business come from in the previous year?
- What prospecting activities produced results?
- What prospecting activities didn’t produce results?
- How much money did you spend on marketing and advertising?
- What was your Return on Investment on the money you spent?
You need to think about what is a realistic sales goal and what activities you will commit to doing. Don’t write down a number you pull out of the sky.
- What was your average price point?
- What was your average commission?
- Evaluate your strengths and weaknesses
Start the new year off on the right foot.
Writing a business plan isn’t difficult, but it does take some time and thought, but I guarantee it will be time well spent.
Enjoy less stress by having smoother transactions by implementing these simple strategies today!
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- Have you struggled turning contacts into clients?
- Are you working hard, but hardly making any money?
- Are you beginning to think you made a bad career choice?
If you answered “yes” to any of these questions you are in the right place! Sign up for my FREE email course, 5 Things Every New Real Estate Agent Needs to Know to start building your real estate business on a solid foundation. Click here to get started!
To learn what it takes to be a successful real estate agent or to get your real estate business back on track, check out Candy’s new book,
“The Reality of Real Estate – The Essential Guide to Planning, Managing and Growing Your Real Estate Business.” Available on Amazon now! Candy, “The Real-Life Realtor”, coaches, mentors and trains new and experienced real estate agents to transform their business by mastering her proven systems for success.
Inman News named Candy Miles-Crocker as one of the Top 25 Real Estate coaches in the United States.
She is a firm believer in managing expectations. Her goal is to elevate the perception of real estate agents among the general public through education so every client has an amazing real estate experience. Candy’s unique training methods have shown agents what it takes to be successful! Learn more about her training program at www.RLRETraining.com or send her an email at Candy@RLRETraining.com. If you haven’t done so already, please connect with us on Twitter on Facebook, and LinkedIn.
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As an active Realtor licensed in three jurisdictions, I approach real estate training from a different perspective. With over 18 years in the real estate business, I teach agents what it’s really like to be a real estate agent.