Business Planning for 2008

It is the time of year again when good agents begin to think about their business plans for next year. I thought for this entry, I would share with you some of my thoughts on this topic and what makes a quality business plan.

First, I would say to you that any agent who really wants to be successful in this business MUST have a business plan. It really isn't important what format the plan is in, what kind of paper it is written on or what color and type size it is written in. SUCCESSFUL AGENTS HAVE A BUSINESS PLAN!

I remember cleaning out the desk of an agent who left our company to go to a competitor. The agent had been complaining for months about his business and how he was not making any money. In one of his desk drawers, I found a file folder that had the words, "business plan" written on it. The file was empty. I was not surprised by this, but saddened that the agent had not taken control of his business with a plan.

A business plan is a road map. It is a tool to show you how you get from point A to point B. It is not set in concrete. Good business plans are written in ways that allow for flexibility and change as your business changes.

There are several elements that a business plan must have to be complete. First, the business plan needs to have realistic goals. Preferably, how many listings you are going to take, how many buyers you are going to sell and how many total units you are going to close. I use the word realistic because sometimes people tell me, "I'm going to double my business next year." This is always admirable, and I am never one to tell someone they can not achieve a goal that they set, but, most agents are not willing to make the commitment to the type of effort that is required to obtain a goal of this magnitude.

Beyond that, your business plan should include some method for achieving the goal. In other words, what activities are you going to engage in to achieve you goal. Are you going to call FSBOs? Work expireds?

Prior to starting your business plan, I recommend that you review your business from 2007 and study where your business is coming from and use that information as a starting plan for the new plan. The best agents I have worked with in the business can tell me at the drop of a hat exactly where there business is coming from.

The hardest part is to start. Once you have something down on paper, the refining of the plan should be ongoing. Details can be added in time as you become more clear on how to achieve your goals.

Best of luck in your business planning in 2008. I am always willing to assist people with this process and would be happy to review your plan. Email me at patrick@century21.com if I can assist you in any way.