“Good is the enemy of great.” While there are a number of important reasons why most agents or companies never become great, the biggest mistake is often lack of organization. Any company can substantially improve its stature and performance if it consistently applies a few key systems to its organization. Where will you focus your energy?
- Vision
- Planning
- Budgets
- Personnel Required
- Market Research & Data
- Leadership
- Capital
- Evaluation
- Execution
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Most of us would not want to take a trip from upstate New York to southern California without deciding upon the time, cost, distance and number of drivers, as well as the size and type of vehicle required. Think of your business plan as a road map that will help guide you and your business on a safe, successful journey over the next year.
Webster defines business planning as “the continuous process of making present entrepreneurial decisions systematically and with the greatest knowledge of their futurity; to organize systematically the efforts needed to carry out those decisions; to measure the results of those decisions against the expectations through organized systematic feedback.”
Nine Benefits of Writing a Business Plan
- It’s the only way to get where you want to go!
- It communicates your understanding of business.
- It makes reasonable assumptions and forecasts of sales, expenses and cash flow.
- It forces you to confront the reality of what you’re planning to do.
- Consider your audience (bank, investors, family, team and/or yourself).
- It should include the strategies you will put in place to achieve your goals.
- Writing a good plan is hard work! It involves a lot of analytical thinking to look at customers, competitors, the market and, especially, yourself.
- The real power of a business plan is that it forces you to understand where you want your business to be in the future and how you will achieve that future.
- It serves as a road map, guiding you day-by-day through all the obstacles you encounter on your road to success.
Seven Components of Every Successful Business Plan
- Your Business
- Current Status (Existing, Start Up, Acquisition)
- Services Offered
- Buying
- Selling
- Renting
- Other
- What Differentiates Your Business from the Competition?
- Structure & Ownership
- Location
- Market, Customer and Industry Analysis
- Your Market
- Size
- Dollar Volume
- Geographic
- Your Customers
- Who Are Your Current Customers?
- What Is Their Demographic Makeup?
- Why Will They Buy or Sell from You?
- Your Competition
- Their Strengths & Weaknesses
- Changes They Are Likely to Make in the Future
- Why Customers Will Come to You Instead of Your Competition
- Your Strategy
- Short & Long Term Goals with Timetable
- Equipment Requirements
- The Marketing Plan
- How & Where You Will Advertise
- Frequency & Cost
- Number of Potential Customers Reached
- Information & Analysis
- Description of Data Used to Track Your Business
- Hardware & Software Used
- Management & Personnel (Employees, Subcontractors and/or Vendors)
- Who Are They?
- What Are Their Responsibilities?
- Financial Requirements
- Initial Investment (Start-Up Costs)
- Budget
- Cash Flow
- Executive Summary
Six Steps to Creating Your Plan
- Start in early December to plan for the following year.
- Find a quiet place to spend 3 to 6 hours of focused attention determining what you hope to achieve next year.
- Review any files you have from the last three years that contain actual income and expense activities.
- Write a 4- to 6-page business plan.
- Discuss your completed form with your coach, manager and team for added input, then with your partner for personal life issues.
- Tie your business activities to a monthly calendar.
Remember, there is no such thing as a perfect plan. Change is inevitable, but the time and effort you put into writing your business plan will save you time and money and increase your probability for success in the future.
 | George “Gee” Dunsten entered the real estate business in 1972. His selling career has crossed the $200 million mark, and he is currently Owner/Broker of Legacy Realty, Inc., and president of Legacy Development Corporation. Gee has been a senior instructor with the Council of Residential Specialist for over 17 years. Gee is the co-author of the book Mega-Million Dollar Secrets, "Power Pack I and II" computer programs and a tapes series "Blow Your Own Horn.” |
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