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Dec
15

Can You Pass this Business Plan Exam?

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assignmentIn December, I’m featuring business planning. Suggest to your agents they check out Up and Running in 30 Days, my blog for achieving agents. I’ll provide lots of planning tips and free documents.

What should a business plan do for you? Appease your owner? (Ia��ve been there, so I knowa��.) Or, should it actually provide you specific, day-to-day guidance about what to do to make your business thrive? If youa��re a practical person like me, you dona��t like to do a�?busy worka��. You and I believe, then, that a business plan should have a practical application for every day of your business.

The ‘Business Plan’ Exam

Take this quick a�?exama�� to see how your business plan stacks up: (and give it to your agents so they can check their plans, too).

1. By going through your process of business planning, you get the a�?visiona�� and mission principles to make the positioning, marketing, hiring, and termination decisions right for your particular business.A�A�A�A�A�A� A�TA�A�A�A�A�A�A�A�A�A�A�A�A�A�A�A�A�A�A�A�A� F

Got that vision? Few business plans start with vision. This causes huge problems when real estate professionals try to implementa��such as implementing a marketing plan.A� A potential coaching client told me she a�?wasna��t very good at marketinga��, and wondered how to get better. You cana��t become a great marketer unless you have a very clear vision of who you are and where you expect your journey to take you. It all starts with a crystal clear idea of your vision, mission, and positioning in the market. Your business plan should contain these very important statements. Then, when you design an institutional marketing plan, youa��ll be able execute your thoughts and feelings visually.

If your vision and mission arena��t well defined in your business plan, you simply have no solid foundation to make those tough leadership decisions.

2.A� Your business plan starts with reviewing and researching the past year in all your business areas.A�A�A�A�A�A�A�A� A�A�A�A�A�A�A�A�A�A�A�A�A�A�A�A�A�A�A�A�A�A�A�A�A�A�A�A�A�A�A�A�A�A�A� TA�A�A�A�A�A�A�A�A�A�A�A�A�A�A�A�A�A�A�A�A�A�A�A� F

Have you really reviewed your situation? If your planning a�?templatea�� doesna��t lead you through the analysis of key business statistics, you simply dona��t know what happened. So, you cana��t possibly make decisions for next year, because you dona��t know whether to do it, stop doing it, or start doing something differently!

Example: In your office, what percent of your listings sold within normal market time? What was the percent of list price to sale price? Few business planning templates ask you to grab these statistics and analyze them. Yet, these are the statistics that directly point you to your strategies and tactics for the coming year.

3. Does your business plan have an a�?action plana�� area, so you can translate your yearly and monthly goals into daily actionsa��and actually schedule these actions?A�A�A�A�A�A�A�A�A�A�A�A�A�A�A�A�A�A�A�A�A�A�A�A�A�A�A�A�A�A�A� A�A�A�A�A�A�A�A�A�A�A� A�A�A�A�A�A�A�A�A� TA�A�A�A�A�A�A�A�A�A�A�A�A�A�A�A�A�A�A�A�A�A�A�A� F

No action plan means you just wasted a lot of time: I have seen so many business plans that only played on the a�?resultsa�� playing field. Writing down the results you want are great, but if your plan doesna��t get down to where the rubber meets the road, (what you need to do daily), you simply are doing an exercise. In other words, you have to get past the a�?whata�� and get to the a�?howa�� and a�?how mucha��.

For example: You may say you want to increase your a�?solda�� listings by 25% in the coming year. How are you going to do that? Here are some possibilities for your action plan:

Through recruiting: Hire 12 listing agents that have demonstrated they list properties that sell quickly. Thata��s 1 per month. Thata��s 5 interviews per month. Thata��s 100 recruiting calls per month. Now, you can break that into weeks and days.

Through training: After researching each agenta��s numbers of listings and listings to sold ratios, you are going to create and implement a high accountability training program to teach your agents the skills of successful listing. You will put your training series, which will be a series of four classes, presented 3 times a year, on a training calendar to hold yourself accountable to do them. (And, a calendar is a great recruiting tool).

4. Does your plan consist of integrated, ready-to-follow systems so you can delegate?

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Ever thought your systems WERE your plan? Michael Gerber, author of The E-Myth and The E-Myth Revisited, says that a business plan consists of the integration of your systems. Most managers and agents feel they are working too many hours. They want to be able to delegate specific duties. But, without systems and processes in place, delegation is impossible.

Is your Business Salable?

Pretend you wanted to sell me your business. I walk into your office. What systems do I see? What systems can I buy from you, so I dona��t have to a�?reinvent the wheela��? What systems do you have that integrate and reflect your values in the overall way you do your business? If you don’t have systems in place that I can readily take over, I might as well start my own company!

How did you do on the a�?exama��? Herea��s your opportunity to think through your business at a much deeper, more meaningful level. Doing so will re-motivate you, re-ignite your passion, and provide you some solid answers for next year.

Click here for an overview of what a leadership planning system should contain.

Want to see more on business planning? Check out my online programA�Beyond the Basics of Business Planning. All the instructional webinars and documents are online, and very easy to complete and implement. This is a program created exclusively for real estate owners and managers. And, when you purchase the manager’s package, you also get access to all the agent’s planning videos and documents.

Complimentary Business Planning Webinar

Just did it with an enthusiastic group last week, and now it’s available to view–along with a PDF of the slides and more. See it here. Why not show it to your agents?

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