Archive for 2011 business plan
Business Planning: Do You Have These 10 Critical Points in your Plan?
Posted by: | CommentsIn December, I’m doing blogs on business planning in both this blog and my blog for agents, Up and Running in 03 Days. Check often for complimentary forms and training.
Do you have a business plan for next year? Is it in a format that I could actually follow if you delegated running the company to me? I doubt over 5% of the brokers could answer that question a�?yesa��. Yet, we all talk about the importance of a business plan. Here are five of ten critical points you must have in your business plan to make it a plan that actually works for you, not just a thesis that looks important on the shelf!
1. Spend much more time in review.
Your plan must include an in-depth review of the past year, or, better yet, the trends of the past three yearsa��both inside and outside your company. Your plan must draw conclusions about this review, so you can use what you learned in planning for the next year. Write it out, so you can remember why youa��re making the moves in that next year. 
Click here to see the areas you should review.
2. Analyze your budget vs. actual expenses.
Measure your last year’s budget versus your actual expensesa��and do an analysis of what happened along the way. How can you set up your budget for the next year without analyzing last yeara��s budget and consequences?
3. Create separate action plans for each area of responsibility.
Create separate action plans for each of your areas of responsibility: Financial/operations/planning/staff, recruiting/selecting, orientation of agents to assure quick assimilation and retention, training (new and experienced agents), higher production/retention, marketing (internal and external), professional development. That way, youa��re actually creating a road map to use every day, not just a broad brush picture. In Business Planning for the Owner, Manager, and Team Builder, I have a road map that allows you to do just that.
4. Use the strategic planning process to think through your business.
Use a strategic, or thought-out approach to each of the planning areasa��based on your vision, mission, and positioning of the company. Dona��t just copy a particular company because theya��re successful. It may not be a�?like youa��.
5. Be sure your objectives are measurable.
Write measurable objectives in each of the action plan areasa��so you know what youa��re shooting for and can celebrate the attainments. For example, in training, decide on measurable production goals that should result from your training– and measure the results of your training frequently.
New Business Planning Program for Managers
Do you find it difficult to get your agents to plan? Do you put off doing your office plan? Here’s your solution. This all-new program does several things for you:
2 webinars teach your agents how to plan using Carla’s strategic planning system
14 planning documents are included to guide your agents right through the planning process
3 webinars for you:
1. How to Create a Great Office Plan
Included: 22 office planning documents to make it easy for you to stay on track and create a great plan
2. How to Convince your Agents to Plan
3. How to Integrate your Office and Agents’ Plans
Also: Hundreds of dollars of bonuses included. See more at Come See 2012: Beyond the Basics of Business Planning. Why not build a great office plan and get every agent a real strategic plan–one that’s inspirational all year?
Business Planning: 53 Coaching Tips from ‘the Coach’
Posted by: | CommentsDuring November and December, I’m focusing both of my blogs on business planning. Look for ready to use checklists, processes and systems. Let’s make awesome 2011 plans!
Have you ever seen anyone follow a process doggedly–and then fail? Of course. Whether we have a bad roadmap, a poor teacher, or a lacking coach–it all leads to less than exceptional performance. I know this intimately, as a musician. I’ve worked with musicians who learned a piece of music wrong. Then, they just keep playing it wrong! They can’t seem to break those bad habits–even when they know they are playing it wrong.
The Power of Models
We blithely follow just about anyone’s directions, because we assume they must be good if they’re published (ha!). Or, we follow them because we like them. However, sometimes the plans we are drawn to are really, really bad! We like them because they ask little of us.
Be very critical of the directions, plans, processes, and systems you get from someone. If they are poor, they will lead you in poor directions.
Watch a Failing Real Estate Agent to See What I Mean
So many times, agents come into the real estate business and make up their own ‘version’ of the business. After all, they come into the business to be ‘independent’. If they only knew what they were doing to themselves…..You see them sit around and wait for something to happen. You see them criticize the ‘leads’ they are given. Left to their own devices, they create a plan for failure. The worst thing is that they don’t even realize they are doing it! They think that any plan of action will work to get them to their goals.
Be sure you are using proven plans–whether you are a new agent, a seasoned one, or a leader. From coaching many managers and owners, too, I know the difficulty for you of finding models and examples you can trust. Sometimes we end up knowing what we don’t want to do–but we can’t figure out what to do! (that’s from the behaviors we see of managers we don’t admire….)
Some Business Planning Tips from the ‘Coach’ (That’s me…)
Click here for those 53 tips from the Coach.
A model for business planning you can trust:
Check out Business Planning for the Owner, Manager, and Team Builder. Special pricing through December, and a business planning webinar bonus, too.
Business Planning: How Do You Know What Training to Plan For?
Posted by: | CommentsThrough December, I’m focusing my blogs on business planning. Look for ready to use checklists, processes and systems to help you and your agents plan for a successful next year.
Youa��re putting together your business plan. How do you know what training to provide your agents? One method is to look at your profit and loss. More about that in my next blog. Herea��s the other way to do it. Simply provide your agents an a�?internal reviewa�� as part of their business planning process.
Click here to see the internal sales performance review, excerpted from The Business Planning System for the Real Estate Professional .
What Youa��ll Find
Have your agents rate themselves on their performance skills. You will see that they rate themselves lower than you would rate them. Why? Because we’re harder on ourselves than we are on others.
Commonalities
What do you think the agents rate themselves lowest in? Youa��re right. Prospecting/lead generation. So, youa��ll want to create a�� with thema��a dynamic lead generating plan for next yeara��and coach them to it.A� See the lead generating plans in The Business Planning System for the Real Estate Professional, and, for new agents, in Up and Running in 30 Days.
Planning your Training
Your training plan should be a part of your business plan. Your training plan should tackle the challenges you have noted as a part of your own business reviewa��and of the agentsa�� business review. By the way, be sure those challenges you noted can be handled through training.
For example: Youa��ve noted an ethics problem in your office. You want your agents to a�?be more ethicala��. Thata��s not a training problem. It is a selection problem. You cana��t train your way out of the ethics we grasped when we were 5! But, you certainly can solve a listings sold problem with training. Be careful when youa��re creating your training, and tackle the problems that you can solve with training.
Put That Training on a Calendar
You’ve done your own analysis of your profit and loss statement. You’ve done your analysis with your agents. You’ve made your training plan. Now, you’re going to put it on a training calendar–and use it to guide your agents, your staff–and to recruit. Not only that, you have an integrated training system that you can delegate. Good work.
Want some assistance and support in getting your agents great business plans? Carla has created a coaching/webinar series to help you and your agents. It consists of 2 webinars, a coach the coach session, and lots of critical information for you. You’ll be the coach they want, and they’ll all have effective business plans.
Click here to learn more.
Business Planning: How Good a Coach are You?
Posted by: | CommentsThrough December, I’m focusing my blogs on business planning. You’ll also find ready-to-use checklists, processes and systems in this blog and my blog for agents, Up and Running in 30 Days.
What percent of agents have business plans? From my surveying, I think less than 10%. Yet, we all know we want our agents to have plans. Why don’t they? I think a big reason is that we, as managers, don’t make the assumption that each agent HAS a business plan–and then act in a way that makes that come true.
A Message to Those Who Have Decided to Lead the Charge to Business Planning
You’ve decided that each of your agents will have a plan–and you’ll coach them to that plan. But, what do you watch for?
Click here to get my list of what should be in each agent’s business plan.
What are Common Agent Planning Mistakes?
Besides looking for what should be in a plan, you’ll also want to recognize common planning mistakes. From coaching hundreds of agents through the planning process, I know the common mistakes they make. Here’s my list:
Let me know how these lists work for you. I’ve found that I had to be a very active leader and participant in the planning process to get my agents to create a plan. Then, I had to help them monitor, measure, and make adjustments. That way, I became an proactive participant with them in the process and the results. I became their coach.
Do your business planning the easy way. It took me years to put these systems together, and you don’t want to spend your time that way! Special pricing, too, on these systems through December.
Bonuses: A business planning webinar and a hard copy of the webinar for your use.
Check out The Business Planning System for the Real Estate Professional (for agents) and
The Business Planning System for the Owner, Manager, and Team Builder.
Business Planning: How’s your Time Management?
Posted by: | CommentsThrough December, I’m focusing on business planning in my blogs. Look for checklists, processes, and systems–ready to use.
Business Planning: How Was your Time Management this Year?
If youa��re like most of us, you have much more on your a�?to doa�� list than you get to during your business day. What does that have to do with business planning? At this time of year, we need to analyze how we spent our time. Then, we can make adjustments for next year. All of us have the same amount of time, yet, some people seem to know how to optimize it.
We Dona��t Manage Time
The notion that we manage time is actually a mis-nomer. We manage activities. Have you ever known an agent who comes into the office every day, seems to work hard, yet makes little money? That person would tell you he manages his time. Yet, his time is spent doing the wrong activities. (Or, maybe, he intends to spend his time in non-productive activitiesa��a��.).
A Major Principle for Great Time/Activity Management
In Up and Running in 30 Days, (use this program for your newer agents for business planning) I introduced the principle of categorizing activities so that you can tell whether you are spending your time in activities that will make you moneya��or not. All real estate activities can be categorized as either
Business producing or
Business supporting
Which are which: Those activities that have agents meeting people directly, working with people, and selling houses are business producing. All the rest are business supporting.
Which are your business producing activities? Are they recruiting, selecting, coaching, and training? If not, you’re not making the profit you should be making.
Click here to get my time/activity analysis, excerpted from The Business Planning System for the Owner, Manager, and Team Builder.
Let me know what you found out from your time/activity analysis, and the changes youa��re making for next yeara��s business plan.
Now’s your opportunity to assess your strengths, make adjustments, and assure that your business plan for 2011 will work. Get all the information you need, the templates, and dozens of tips on how to be profitable. Special pricing, too, through December.
Click here to read more.
Bonuses: A business planning webinar and the hard copy of the webinar for your review.
Also: Don’t forget to check out my blog for agents, Up and Running in 30 Days, which also features business planning tips and ready to use checklists through December.
Keys to Coach the Agent’s Business Plan
Posted by: | CommentsThis month, I’m focusing on business planning. I want every professional to have a great plan for next year. Look for checklists, processes, and systems, too, ready to use.
You’ve decided to coach your agents in creating great business plans. but, if you’ve never coached an agent in business planning, it can be quite daunting.A� So, what do you look for? In this blog, I’ll show you how to use their statistic
listings taken to listings sold in normal market time.
to coach them to a better year next year. You would think agents know this statistic, but very few do. Ita��s so important, because it
- Determines whether the agent makes enough money per listing or not
- Determines whether the agent builds a positive reputation or a poor one
- Reflects the agenta��s value-proposition strategy
- Reflects on the officea��s productivity and profitability
Your success rate with listings sold is, in my opinion, the one most important reflection of agent value propositions out there.
For example: A�George Smith, a 10-year seasoned agent, has demonstrated a consistent listing strategy. A�Georgea��s a�?success ratioa�� is 40%. That is, he sells 40% of his listings in normal market time. What does that say about Georgea��s values proposition strategy? How is George a�?usinga�� his listings? Is that the culture you want perpetuated in your office?
Sally Overton has a different value proposition strategy. She has a 90% success ratio in listings taken to listings sold in normal market time. Obviously, she is building her referral systema��her raving fans. She is making herself more money in less time. She is drastically reducing the number of complaints (and attacks on her self-esteem, too). She is a role model for best practices in her real estate office. Is that practice more in line with your culture?
Your opportunity: As Georgea��s business planning consultant, youa��ll be a�?testinga�� George to see if he wants tochange his strategy (some agents love being a�?bait and switchersa�� too much to change). Youa��ll have the opportunity to help Sally leverage her awesome conversion rates to obtain even more raving fans. (Nothing succeeds like success).
Do you know your ‘conversion numbers’ in listings taken to listings sold for your company? When you make your own plan, be sure to do a thorough review, and find this number. A high number means you’ll be able to recruit better, get better retention, have better team spirit, and your agents can build on that reputation. A low number means you have a lot to work on!
Click here for a list of common agent business planning mistakes to help you as you coach agents through the planning process.
Excerpted from my agent business planning system, The Business Planning System for the Real Estate Professional.
In my business planning coaching series, I take manager coaches through the process, show them what to look for, and coach them as they coach agents. Check it out. I’ll do most of the work, and you’ll get the credit–and, a focused, inspired group of agents eager to reach their goals next year.
Take the ‘Business Plan’ Exam
Posted by: | CommentsIn these posts, I’m focusing on business planning, so you will have the information to create a great plan for 2011. Watch for ready to use checklists, systems, and processes, too.
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.
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 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 some support on getting your agents to plan?
Check out our business planning coaching series. Carla will coach you through the process, provide a ‘live’ webinar to your agents, follow up with you and them, and then, three months into the new year, ‘come back’ and assure that everyone has a plan and is following it. What could be easier and more effective?
Also, you, the coach, will receive coaching from Carla, plus all the direction you’ll need to become that respected, confident coach for your agents. What a great way to recruit winners, too? Click here for more information.
Business Planning: Avoid 5 Planning Mistakes
Posted by: | CommentsDuring November and December, I’m writing business planning blogs to help you create great plans with your agents. Check these blogs, too, for checklists, processes, and systems ready to use.
As you make your business plan, avoid the common mistakes that many real estate professionals make. Here they are:
MISTAKE #1
Betting on a business plan that’s only about 1/4 of a plan. Many of us write down our goals. Yet, that’s not a business plan. That’s just one part of the business plan. There are six parts to a real business plan:
a. Your vision-what do you have as an “end in mind”?
b. Your review-what happened last year?
c. Your mission-what are you about?
d. Your goals-expressed in the best terms for profitability today
e. Your action plan in each of 6 areas.
f. A method to measure your results.
Which parts do you include? What would your outcomes be if you thought through your business, covering all the bases?
Click here to see the ‘flow chart’ of a manager’s business planning system (excerpted from The Business Planning System for the Owner, Manager, and Team Builder).A� See the ‘special pricing’ and bonuses available through December, too.
MISTAKE #2
Ignoring the importance of ‘revenue units’ (sales and listings sold). Unfortunately, when we write our goals, we like to use those great million dollar numbers and measurements like market share. Yet, setting goals for revenue units assures that you keep your eye “on the ball”-homes sold, which make you money. There’s another huge benefit to focusing on revenue units: You can then integrate your agents’ plans with your office plan.
MISTAKE #3
Not doing a thorough review (or not doing a review at all). Looking back on your last year is so important, because it gives you the “hints” you need to write your best action plan for the next year. I think it also solves the problem of the manager trying to figure out what to do next.
For example: It’s amazing that brokers don’t know one of their most important numbers for profitability: percent of listings taken to listings sold. You may be wasting many dollars in marketing homes that won’t sell-no matter what you do. Also, your agents become unmotivated and depressed when their listings don’t sell. Knowing this ratio gives you direction for your training and coaching for the coming year. Create a higher ratio and you’ll be able to use it to recruit, too.
MISTAKE #4
Writing the plan ‘in a vacuum.’ Almost always, brokers sit down to torture themselves by writing a business plan in a room with the doors shut and no windows. But, they don’t know yet what their agents want to accomplish for the next year. The right way to plan is this: First, help each of your agents create a business plan. The sum of your agents’ goals should form the foundation for your goals. After all, your agents’ efforts should be reflected in your revenue unit goals, shouldn’t they? Yet, very few brokers even help their agents write business plans. So, they can’t really get good projections of what they think their agents will produce in the next year.
If you do assist your agents in their planning processes, you will have a much better foundation for a realistic business plan of your own. (That also means you should be consulting your agents on their business plans in November, so you’ll have all their plans together as you start creating your office plan).
MISTAKE #5
Not creating specific action plans in each of the action plan areas. Michael Gerber, a spectacular “guru” for small businesses, says “the integration of your systems is your business plan.”
In other words, if you have a real business plan, I should be able to read it, come into your office on any day, and see how you’re carrying out your business plan in recruiting, selecting, training, coaching, and marketing. You would be able to delegate many of your duties, too, because you had specific action plans for each of these areas. You would be able to measure your progress at any given point. Further, if you have created action plans that are systems, someone would be willing to buy your company from you, giving you a very attractive price! (That’s what Gerber terms “franchising.”)
Get Ahead of the Curve
If you don’t have a business plan, there’s still time to get one done. Just by thinking through your business, you’ll be ahead of 95% of your competing brokers!A� If you want to make more money, gain time, delegate more to others, open another office, or create an office that’s saleable, it all starts with thinking through your business, getting it down on paper, and attaching systems to each of your action plan areas. Now, you’ve got something you can run, you can delegate, and you can sell.
Business Planning: Are you ‘Systematized’ to Profit?
Posted by: | CommentsThis is part of a series on business planning. Look for helpful checklists, processes, and systems I’ve included in these posts. Here’s to a very successful business plan!
Are you trying to run your office (and probably sell real estate, too), without systems? Most managers are. That’s costing you lots of time, money, and frustration. So, now’s a great time to get those systems in place, so you can have an integrated, workable business plan. Here’s the process:
1. Create systems to manage processes through change
2. Choose methods (including technology) to manage these systems
Let’s talk about the systems first. Good agents today have systems for each process they manage. For example, an agent has a listing process system, which includes the materials, packages, and checklists to manage the process. With those systems, agents can not only the manage the process, they can delegate the right activities to their assistants.
Systems: The Agenta��sa��and Yours
Think about the systems, processes, and checklists you, as manager, recommend that your agent create to accomplish the critical tasks, or activities, in his business. Now, compare that with the tasks you, as manager, have to accomplish in your position as “people” manager. Work from the tasks to systems to manage these tasks. To prioritize the systems you want to develop, first:
1. List the tasks you do as manager. Now, list the parallel the tasks agents do.
An example: A critical task an agent does is lead generate. Good agents have systematized that process into a marketing plan, complete with specific tactics, dates, and budget. Managers must lead generate, too. They lead generate for agents.
Does your prospecting (recruiting) plan for agents resemble that of your best agent’s marketing plan? Is it as systematized? Does it have the materials, time frames, budgets, and delegations that good agents have in their plans?
2. Now, prioritize your tasks as they relate to accomplishing your main objectives. What are the most important tasks you do as manager to assure your office makes a profit?
An example: If recruiting is very important to reaching your objective, how complete is your recruiting system? How organized is it? Who is involved with you in your recruiting plan? How well are you delegating the systems?
Your Job Description Gives you a�?Hintsa�� about Systems you Need
Developing systems first requires that you’ve prioritized your job description. Then, you must either create or purchase systems to manage these processes. One reason managers haven’t systematized their work is that managers have few resources for systems organization. To actually systematize their work, they must create these systems from scratch. Given the myriad of activities managers must accomplish, that’s a daunting assignment. Instead, many managers stay in “crisis” management, which admittedly takes up a lot of the day, but doesn’t allow the manager to move ahead as a leader.
In contrast, agents have many resources for systems organization, both purchased and exchanged with other agents. First, there are many more agents than managers, and agents coming into the business each day. So, there is a larger market, and need, for agents’ systems. In addition, agents have led the way in organizing their businesses to delegate to assistants. It’s become ‘the thing’ to do.
Managers know they need systems.A� Learning how to systematize your business with technology supporting your goals is challenging and rewarding. Doing so will help you step into the twenty-first century with confidence and enthusiasm.
Click here for a list of systems I believe managers need to grow their offices, save time, and create a consistent culture they can count on (and hand over management to someone else when they want to!).
Want some help in business planning? Check out my webinar/coaching series. I’ll guide you through the planning process, give you tips on coaching your agents, and teach them how to plan via 2 webinars. What could be easier and more effective?
Click here to find out more.