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.