Harvard University conducted a survey with over 1,600 businesses and found out that 70% have no written or verbal business pan, 27% had verbal goals and only 3% had a written business plan. The same survey also showed that 98% of the wealth was created by those 3% who had a business plan. So, my question is, do you have a written business plan?
Most agents in our industry set their goals at the beginning of the New Year, especially when the broker or manager requests our goals for the year; however these goals are rarely in writing. Why? We don’t think it’s necessary or important. But remember having a goal is not the same as having a business plan. A good business plan is very detailed and can be quite expensive if prepared by a professional. This email has to do with 5 Reasons why it’s Important to Create a Realtor Friendly Business Plan.
- Tax Savings: If you go to your tax preparer at the beginning of the year and bring your business plan, he or she will be able to assist you better and perhaps increase your tax deductions.
- Vision: Your business plan should include the cost of taking your business to the next level. Let’s say you’ve been thinking about hiring an assistant, but feel that you can not afford it; you should still include the cost of having an assistant in your plan. Now you know how many deals you need to close in order to be able to hire one. Remember, we only make money when we are in front of the client, not pushing papers.
- Awareness: A well prepared business plan includes all your expenses (personal, family and business). Once you know how many transactions you need in order to live the life you want to live, you can get to work and just concentrate on doing what you need to do in order to fulfill your plan.
- Direction: Your business plan should be like a GPS for your career. Why do we look up addresses on Map quest or program our GPS before going to a showing? Well, we don’t want to look unprofessional or unprepared or waste our time by getting lost; a business plan will do the same for your business. It will tell you if you are on or off track and how far you have to go before reaching your destination.
- Failure to plan is planning to fail. We are in this business because we want more out of life than just what a job can provide. We want to be successful; we are not in it because we want to fail. Unfortunately, most sales agents never reach their full potential, not because of lack of willingness, but mainly because of the lack of planning.
One last thought; even the most detailed business plan will never work without one more ingredient and that is persistence. I would like to leave you with the abridged version of one of my favorite quotes: “Nothing takes the place of persistence, talent will not, genius will not, education will not, Persistence and determination alone are omnipotent.” Calvin Coolidge.