2010 business planning 1
DESCRIPTION
This is the most recent Real Estate Business Planning Presentation for RE/MAX Professionals.TRANSCRIPT
Business Planning
The Key to your success in Real Estate!
Darryl and Christine Mitchell
A Business Plan
• You have a choice– You can fail to plan and therefore plan to fail– Or you can plan for your success
• That is what today is all about– Planning your success
Why a Business Plan?
• You can get a clear picture of where you are.• Gives you business• Gives you focus• Gives you income stability • Helps with financial planning• Provides increased profitability• Measures your return on investment• Makes you better equipped to handle change
Vision Statement
• Where do you see yourself?
• What do you have to accomplish?
• How am I viewed by clients, customers, company, family, friends and peers?
• What is my attitude, performance, customer service and knowledge?
• This statement should form the basis of your target goals and plans for the future.
Analysis
• What is working for you in your marketplace?• Did you achieve your financial, career and personal
goals?• Take time to ponder and make some adjustments
before moving forward. Remember if you don’t make changes you will probably get the same results. That may be great if you achieved you goals in 2009. But if you want to improve, change will be necessary.
Competitive Analysis
• Who are my existing competitors?• Royal LePage, Prudential, Coldwell Banker, C21,
Boutique Offices, FSBO’s, New Home or Condo Builders.
• Who are my future competitors?• Realty Sellers, Keller Williams, Internet Marketing,
Homelife.
• How do they compete?• No Commission, Commission Cutting, Low Overhead,
High Overhead, Boutique Services, Large National Campaigns, No marketing, High Service Level, Moderate Service, No Service at all!
CompareC21 Prudntial ReMax CB
International
Local National Yes
By office
By office National local
Some Some Some Some
6.4% 6.3% 32.1% 4.5%
35 40 160 35
+40 +40 +150 +30
Yes Yes Yes Yes
Company
Internet INTERNATIONAL
Listings on Site Thousands
Training Multi-faceted
Market Share 42.4%
Agents +200
Oakville Listings +200
MLS Yes
Self Analysis
• How do I compete to win more business?• RE/MAX Distinct Value Proposition• High Value Service, • Technology, • Ethics, • Low Error Rate, • Commission/Service Packages, • Prospecting,• Canadian Image• Neighbourhood Specialist • 50+ Dynamic• 30- Dynamic
Analyze Effectiveness
• Is your marketing effective? Or is it “EGO” advertising?
• Should changes be made?• Did we budget enough for advertising?• Are you adverting in media that is outdated?• Are you prospecting? By Telephone? Door
Knocking? Kiosk or Other? Social Networking?
• Review your marketing plan, calendar and budget for effective and efficient marketing.
Financial and Production Review
• 2010 Goal• $ Sales• # of Listings• # of Listings Sold• # of Purchaser Sales• # of Units• List to Sold %• Average Selling Price• % Appointments to Listings• Average Gross Commission
per End
• 2009 Actual• $ Sales• # of Listings• # of Listings Sold• # of Purchaser Sales• # of Units• List to Sold %• Average Selling Price• % Appointments to Listings• Average Gross
Commission per End
2010 Goal Setting
2009 Actual
$2,500,000
13
10
3
13
78%
$250,000
66%
$7,500
2009 Goal
$2,200,000
10
9
5
14
90%
$220,000
80%
$8,000
2010 Goal
$2,900,000
15
12
4
16
80%
$260,000
70%
$7,600
2010 Actual
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Marketing Budget
• What % of your Gross Income did you invest in your business in 2009 from a marketing point of view?
• What media did you use that got results?– Social Networking– Personal Marketing– Farm Marketing– Referral Base Marketing– Demographics
You know you are a Technology RED NECK When ---• Is your “VCR” still flashing?”
• Is your “cell phone” still ringing in your jail cell?
• Do you still use “cheese” to trap a mouse?
• Is a “hard drive” help for your golf game?
• Is “Running out of Memory” a mind game?
• Is “RAM” a “horned” animal?
• Is “SPAM” something you have for lunch?
• Is “TWITTER” something your voice does?
Action Plans
• Action Steps to achieve your goals.
• Is important to start working not just planning.
Time Management
• Your time should involve – Prospecting, Listing, Negotiating Offers, Closing.
• Set out personal time 1 and 1/2 days each week
• Make an appointment with yourself to go to staff meetings, training and other important business events. Don’t Skip these!
• Set out your vacation and time off• Consider “100 Days to Greatness”
Program.
Balance
• Balance is the essence of success in life as well as business– Do you have a plan
for success in your Physical, Mental and Spiritual wellbeing?
Physical
Mental Metaphysical
Balance in Life
Financial Goals
Personal GoalsBusiness Goals
Family Goals
Balance in Financial Goals
Financial Goals
Personal GoalsBusiness Goals
Family Goals
Budget
Revenues Taxes
Expenses
Balance in Personal Goals
Financial Goals
Personal GoalsBusiness Goals
Family Goals
Sports
Political Health
MusicSpiritual
Family
Personal Development
• Training and development are critical for your personal growth.
• Don’t ignore this important goal of endeavouring to establish a professional development goal.
• This can involve education or more humanistic goals.