Real estate business planning is often considered a necessary evil among agents. Why? Any of these responses could suffice:
- We’re “independent contractors,” after all.
- Many enter real estate as a second career/second income, sometimes part time after children go off to school.
- For some, a career in real estate is the result of downsizing or even retirement from the corporate world where time constraints, deadlines, planning and accountability are the daily norm.
- The potential for high earnings with little or no accountability is enticing, and often sold as part of a company’s value package.
I say with confidence, a large majority of agents would not know the value of their desk space to their broker, much less if it is in alignment with their desired earnings. So basically, the business planning process becomes a goal setting activity that, once discussed, is filed under “B” where it collects dust until the following November or December when the process begins again.
There is an old proverb: “Failing to plan is planning to fail.” I believe goal setting without a strategic plan of action, careful execution, and consistent tracking and review is failing to plan. While that might sound overwhelming, it really isn’t when you put systems in place.
You would not consider going on a trip without a destination in mind or careful planning, nor should you consider undertaking your real estate career without clear written goals and a plan for accomplishment. Whether real estate is your sole source of income or supplemental discretionary income, goals are the necessary beginning to a successful career, but they are just the beginning.
Take a moment to locate your 2010 plan. Go ahead … I’ll wait. Okay, now take a look at it. Does it include more than financial goal and a few action steps? If not, consider these five components and their value to your business plan:
A plan without strategies and implementation is nothing more than an exercise in goal setting. Add these components to your plan to give it focus and direction then follow the plan for results.