Business plan

5 steps to establishing a profitable business plan for your real estate team


We are in the process. There are less than 50 days until 2022! And that’s still a long time to prepare to start the New Year. This is a great time to reflect on what went well – and what went wrong – in 2021, revisit your goals for the next few years, make adjustments, and develop a clear and clear business plan. achievable for the coming year.

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We are in the process. There are less than 50 days until 2022! And that’s still a long time to prepare to start the New Year.

This is a great time to reflect on what went well (and what went wrong) in 2021, revisit your goals for the next few years, make adjustments, and develop a clear business plan and achievable for the coming year.

9 things to include in your business plan

Traditional business plans have nine key elements that are useful to describe, especially if you’ve never written a business plan before. So let’s start there:

1. Summary

This gives an overview of the business as a whole and highlights what the business plan will cover. This is a great place to include your mission statement, principles or values ​​as well.

2. Overview and purpose

What product or service do you provide? Who will you serve? How do you provide them? What are the company’s goals? This is where you summarize your current operations and where you plan to go.

3. Products and services

What is your business selling? What are the fundamental financial models or the costs that you charge for these services?

4. Market opportunities

Evaluate, research, and then describe what the sales opportunities are in your market.

5. Sales and Marketing

How are you going to market and sell your product? What are your lead generation funnels (and associated costs)? What traction channels will you invest your time and money in? Who is your target audience? How will you systematically exceed them? What is your lead optimization and conversion strategy?

6. Competitive analysis

How does your business compare to the competition? Who are your biggest current competitors? Who are the potential competitors you need to prepare for? How will you differentiate yourself from the competition?

7. Operations

How will you serve your customers and clients consistently, keep spending in line, and ensure profitability? What systems, models, processes, infrastructure and people will you need to achieve your business goals?

8. Management team

Who are the main leaders? What is the role of each? What are their compensation plans? Who else might you need to complete your team?

9. Financial analysis

What are your current finances like (balance sheet, P&L, cash flow statement, operating budget)? What are your financial projections for the coming year?

5 steps to help you build your 2022 business plan

1. Be clear about your goals

Forget the opinions of others or what you think you should go after. What do you really want? Ask yourself:

  • How do you want to spend your time on a daily basis?
  • Who do you want to spend time with?
  • What projects do you want to focus on?
  • What ideas, services or causes set your soul on fire?
  • Where do you see yourself in five or 10 years?
  • What do you need to do this year to get closer to this future version of yourself?

Take the time to keep a journal or use tools to dig deep and clarify what you want.

2. Start with the end in mind, then work your way back

Now that you’ve set your specific goal, it’s time to go back and break your annual goal down into concrete, actionable, and measurable pieces.

Do you want to make $ 1 million in 2022? Great! What are your expenses? How much will you need to get $ 1 million gross? From there, break it down even more:

  • How many sales do you need per month at what average selling price and at what average commission?
  • How many appointments will you need to make so many sales?
  • What’s your conversion rate?
  • How many prospects will you need to connect with to make this number of appointments?

Describe everything.

3. Determine who will help you get there

Once you’ve set your sales numbers to hit your profit goal, think about what members of your team you’ll need to meet that goal. You may be able to make the calls and arrange the number of appointments yourself.

But if that isn’t realistic, or doesn’t match how you want to spend your time, then it’s time to consider who you might need to hire in the coming year.

Perhaps it is an ISA, an administration professional, a cyberbacker, or a buyer’s agent. Describe your staffing needs with the corresponding investment (don’t forget to include employee costs such as insurance, payroll taxes and fringe benefits!).

4. Review your expenses

You know where you want to go. You know what kind of sales activity you’ll need to make it happen. And you clearly know who you need to invest in to help you achieve that goal.

How are your finances looking at this stage? What expenses should you eliminate that are not serving your goals? What new employees or systems do you need to invest in to reach your revenue goal? Make the necessary adjustments to your financial analysis in your business plan.

5. Delegate and set clear goals for your team members

Once you’ve done the work of creating a clear business plan, make sure your team members know which part of the plan they’re responsible for overseeing and implementing.

For example, your operations manager or finance manager will need to keep an eye on expenses and revenue to make sure that each month the team is on track.

Your lead generation manager will need to be held accountable for getting the necessary number of leads and appointments to reach your sales numbers.

Your team members might even want to create a simple business plan for their own division to stay on track throughout the year.

Whether you’ve already made a business plan or this is your first time, getting this information outlined and on paper and reviewing and revising it every year is a great practice to gain clarity and be more strategic about growing your business. your company.

As real estate professionals, I know we are all incredibly enterprising; that’s part of the reason we got into the business in the first place! But if we are to build a sustainable, scalable and profitable business, we must take the time to create plans.

Yes, it may slow you down in the short term, but once you do your due diligence with a business plan, you will be able to act much faster and more effectively over the next year or so.

Adam Hergenrother is the founder and CEO of the Adam Hergenrother Companies, author of The Founder & The Force Multiplier and host of the Business Meets Spirituality podcast. Learn more about Adam’s holistic approach to business here.

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