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Business Planning Been there, Done That-Got the T-Shirt.

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Business Planning Business Planning Been there, Done That-Got the T-Shirt
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Page 1: Business Planning Been there, Done That-Got the T-Shirt.

Business PlanningBusiness Planning

Been there, Done That-Got the T-Shirt

Page 2: Business Planning Been there, Done That-Got the T-Shirt.

Looking Back at 2008Reasons to Fail

1.) No buyers

2.) Slow Opens

3.) Unorganized

4.) Poor attitude

5.) No data base

Contact-mgmt

6.) I’m not lucky

What you should do1.) Look for buyers

2.) Find a high traffic open

3.) Get organized!

4.) Be positive everyday!

5.) Work on your data base

6.) Be prepared

It’s your choice! Everyday you wake up make a plan of action and follow through! Get something accomplished!

Page 3: Business Planning Been there, Done That-Got the T-Shirt.

What can a business plan do for you?

• No plan…no progress

• Its an outline for your goals, aspirations, expectations and financial needs

• A well-developed plan is your most important business too.

• Step-by-step it translates your ideas into profitability

Page 4: Business Planning Been there, Done That-Got the T-Shirt.

Pros of being an independent contractor

• Opportunity to make more money than as an employee

• Being your own boss

• Job Security

• Able to put your ideas into practice

• Personal satisfaction of creating and running a successful business

• Able to work in a field you really enjoy

Page 5: Business Planning Been there, Done That-Got the T-Shirt.

Cons

• Possibility of financial risk

• May have to work long hours

• Income is not steady

• No healthcare benefits

• Will have to perform many business disciplines

Page 6: Business Planning Been there, Done That-Got the T-Shirt.

Benefits of a written plan

• An increased chance of business success• A reality check• A timetable that helps you coordinate all

the diverse activities you need to employ• A vehicle for tracking the progress of your

business.• A blueprint against which you can adjust

activities to achieve your goals• A starting point for future planning

Page 7: Business Planning Been there, Done That-Got the T-Shirt.

Assess Where You’ve Been

Damn GPS!

Page 8: Business Planning Been there, Done That-Got the T-Shirt.
Page 9: Business Planning Been there, Done That-Got the T-Shirt.

HISTORICAL PRODUCTION, EXPENSE AND ACTIVITY ANALYSIS

PRODUCTIVITY

YEAR Number of Listings Taken

Number of Listings Sold

Number of Buyer Controlled Sales

Total Volume

Average Sales Price

ACTIVITY

YEAR Number in Sphere List

Mailers/Year Number in Farm Mailers/Year Open Houses/Year

Page 10: Business Planning Been there, Done That-Got the T-Shirt.

INCOME/EXPENSE

YEAR Gross Income Annual Expenses Expenses as % of Gross Income

Net Income

Page 11: Business Planning Been there, Done That-Got the T-Shirt.

SELF QUESTIONNAIRE

Answer YES or NO to the following questions:

Do you consider Real Estate your career? _____

Did you meet your financial “goals” last year? _____

Did you meet your financial requirement last year? _____

Would you work for a company that is not making a profit? _____

Would you want you as a business partner? _____

If you were an employee and could be fired, would you work differently? _____

If you were a manager, would you require a minimum monthly production? _____

Page 12: Business Planning Been there, Done That-Got the T-Shirt.

EMPLOYER REVIEWIf you were the boss and had you as an employee in your firm, how would you rank:

X one box for each category Excellent Good Fair Poor

Attendance; worked full days

Attention to detail

Knowledge of area/product

Increase in business/production

Client satisfaction

Does this employee deserve a raise?

Should this employee be retained?

Does this employee need a performance improvement plan?

Page 13: Business Planning Been there, Done That-Got the T-Shirt.

Figuring your commission

Your average home sale price ______

Times your average commission rate ____

Less Franchise fee _____

Times your split (65%) _____

_______ = Your average commission

Page 14: Business Planning Been there, Done That-Got the T-Shirt.

Plan your time commitment

52 weeks/year less_____weeks vacation =

7 days/week less ____ days off/week =

____ weeks times ____ days/week =

What time will you go in to work? ________

How long is your lunch break? ________

What time will you leave work? ________

Does this add up to at least 40 hours/week? _____

Page 15: Business Planning Been there, Done That-Got the T-Shirt.

Let’s do the math

Page 16: Business Planning Been there, Done That-Got the T-Shirt.

Business card math

I will hand out just ____ business cards/day.Only ____ days per week.Only ___ weeks per year.If I have only a 1% conversion rate.With my average of $________ transaction.

I will make $___________

Page 17: Business Planning Been there, Done That-Got the T-Shirt.

Open house math

I will do ____open houses/mo. X ____ Mo= _____ O.H. this year____ groups/o.h. X ____ = ____ groups10% capture rate X ___ = ____ clients

===========____Clients X my avg. comm

= $________ Income

Page 18: Business Planning Been there, Done That-Got the T-Shirt.

Sphere of income math

The Premise:• Everyone you know, knows at least

one person per year that has a real estate need.

• Only 50% of your SOI will send you a lead.

• Only 50% of those leads are viable.

Page 19: Business Planning Been there, Done That-Got the T-Shirt.

You have ____ people in your SOI = _____

During 2009 ____ % (50%) will provide meWith the name of a potential buyer or seller X 50%

=========Potential Leads = ____

However only ____ % (50%) of those leadsare viable. Then I have X 50%

=========Potential Transactions = ____

Potential transactions X my avg. commission = _______

=========

Potential Annual Income $ __________

Page 20: Business Planning Been there, Done That-Got the T-Shirt.

Floor call math

I will sit floor ____/month.

X ____ Months = ____ Floor call this year

____ Calls/floor time X ____ = _____ Calls

10% Capture Rate X ____Calls= ____Trans.

____ Trans x My Avg. Comm.

= $_______ Income

Page 21: Business Planning Been there, Done That-Got the T-Shirt.

Farm math

I will contact my farm ____ times/year.

1% capture rate x _____ houses in farm

= ______ Trans.

_____ Trans. X $ my avg. comm.

= $_______ Income

Page 22: Business Planning Been there, Done That-Got the T-Shirt.

fsbo math

If I can convert one FSBO per _______

1 X my average commission=

= $_______ Income

Page 23: Business Planning Been there, Done That-Got the T-Shirt.

Expired listing math

If I convert one Expired per _________

1 X my average commssion =

$______ Income

Page 24: Business Planning Been there, Done That-Got the T-Shirt.

Planned income 2009• SOI Income = $• 7 Second Pres. Income = $ • Open House Income = $• Floor Income = $• Farm Income = $• FSBO Income = $ • Expired Listing Income = $• Lease Income = $

==========================Annual Income = $

Page 25: Business Planning Been there, Done That-Got the T-Shirt.

Strategic Marketing Plan

the how to

or

action plan to meet your

identified financial goals

Page 26: Business Planning Been there, Done That-Got the T-Shirt.

s.m.a.r.t.

Goals must be

• Specific

• Measureable

• Attainable

• Relevant

• Trackable

Page 27: Business Planning Been there, Done That-Got the T-Shirt.

Written goals

• What

• When

• How

• Where

• Why

Page 28: Business Planning Been there, Done That-Got the T-Shirt.

Write a

goal now

Page 29: Business Planning Been there, Done That-Got the T-Shirt.

Example

What: I will contact my farm 1 X per month.

When: By the 15th of each month.

How: Newsletter each month by email if possible or by personal delivery to door.

Where: My subdivision.

Why: $3000.00 Income

I

Page 30: Business Planning Been there, Done That-Got the T-Shirt.

ExampleWhat: I will increase my personal exposure to

my farm.

When: Every quarterHow: 1st qtr: Deliver for-get-me-not seeds

2nd qtr: Deliver 4th of July flags

3rd qtr: Deliver local sports team schedule

4th qtr: Annual Food Drive Fliers and p/u times

Where: My subdivision

Why: $3,000 Income

Page 31: Business Planning Been there, Done That-Got the T-Shirt.

Example

What: Increase my SOI by 25 people

When: By mid-year.

How: Join Book Club Group and Bunco Group

Where: Book Club at local library

Join Mary’s Bunco group.

Why: $15,000 increase in income

Page 32: Business Planning Been there, Done That-Got the T-Shirt.

Example

What: Give myself a raise in my commission!

When: Beginning NowHow: 1. No more listings discounts

2. Take 7% or 8% listings on Short Sales

3. Push back on lenders trying to lower commission

Where: at listing presentations; at short sale negotiations

Why: $5000 Raise

Page 33: Business Planning Been there, Done That-Got the T-Shirt.

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