In a previous blog, we reviewed setting SMART goals. After setting your goals, you’re ready for the final step in the process: Writing a Business Plan and schedule that support the accomplishment of your goals.
Before launching into writing your plan, determine how many days/weeks you will work this year. It’s helpful to use a big planning calendar, ideally one that shows all 12 months at a glance. Mark off vacations, holidays, days off and other commitments. Be honest. Factor in some time for unexpected events such as illness. Most real estate agents truly work about 42 weeks a year.
Once you’ve determined the number of weeks you will work, you’re ready to complete the Business Plan steps:
1. Take the Average Sales Price in your market.
2. Multiply that by your Average Brokerage Rate.
3. This equals the Average Brokerage Fee.
4. If you multiply the Average Brokerage Fee by your Commission Split, you’ll get your Average Commission Income per transaction.
5. Write down your Annual Income Expectations.
6. Now, divide your Annual Income Expectations by Your Average Commission Income per Transaction.
7. This will give you the Number of Transactions you’ll need to complete this year!
8. Take this number and multiply it by the Number of Appointments needed to result in one (1) closed transaction (avg. 4).
9. This will give you the Total Number of Appointments needed.
10. If you take the Total Number of Appointments and divide it by the number of Working Weeks per Year, you’ll get the Number of Appointments you’ll need each week.
11. Now, multiply that number by the Average Number of Prospecting Clients needed to result in one (1) appointment (avg. 10).
12. This equals the Number of Prospecting Contacts you need to make each week in order to generate the income you expect!
Now, it’s time to create your schedule. Setting an effective schedule is the key to efficiently achieving your goals. You must get anyone affected by your schedule to buy into it. People will help you stay on track if they believe it will benefit them in some way.
80% of your schedule should be filled with money generating tasks: Prospecting, lead follow-up, qualified seller appointments, qualified buyer appointments and negotiating offers. These activities take priority over everything else. Schedule activities in blocks of time to be more efficient. The most important part of your day is between when you get up and Noon. Prospecting should be scheduled as the very first thing on your schedule for your business day.
Keep your schedule in a visible place. It will hold you – and others – accountable. Your schedule is a working document and there will be times you must make adjustments. It takes discipline to follow a schedule. My definition of discipline is: “Doing what you know you should do even when you don’t feel like it.” Although difficult at first, following a schedule will become a habit: The more you do it, the easier it is.
Remember, it’s a process, not an event!
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