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September 27, 2018

Creating a Business Plan for the Real Estate Sales Business

Real estate professionals need to create a business plan. In addition, conducting business reviews will help you determine if you are "on plan."

Make Your Long-Term Plans!

When I look at business planning for the real estate sales business, I see the need for short and long-term plans:

1. Sales Plan - Definite and specific

2. Technology Plan - Don't spend money on technology unless you know you are going to use it, and that you will take the time to learn it and integrate it into your business (unless technology is your hobby or you have money to burn).

3. Marketing Plan - Both on and offline, integrated and coordinated

4. Web Site Plan - Websites are billboards in the middle of nowhere - what is your strategy for traffic? IDX, VOW, or both?

5. Social Media Plan - find the right online communities for you and participate. Facebook, LinkedIn, Instagram, New community platforms, portal communities, product communities, specialized interest communities.

As your business matures, your business plan will change. Your business plan should move you toward your business goals and your business goals will change for your business based on previous year's achievement and whether or not you are growing your business, maintaining your business, or preparing for retirement from your business.

Your business goals should help you achieve your life goals, there needs to be consistency. Again, reviewing each year is very helpful. I had a partner in my real estate business and each year we shared our personal goals with each other as we prepared our company's business plan.

Remember: You Are a Business

A business plan is any plan helps a business look ahead, allocate resources, focus on key points, prepare for problems and opportunities, and achieve clearly defined goals and objectives. Many people think business plans are only for new businesses. A business plan is also essential for the successful operation of a small business. Businesses need plans to optimize growth and development, based on priorities.

You establish the priorities as the owner of your real estate business.

The Start-up Business Plan

A simple start-up plan includes a summary, mission statement, keys to success, market analysis, and break-even analysis.

Cash flow is vital to a business. Cash is often misunderstood as profit, and they are different. Profits don't guarantee cash in the bank. Lots of profitable companies go under because of cash flow problems.

Implementation details and execution are key. Your brilliant strategies and beautifully formatted planning documents are just theory unless you assign responsibilities, with deadlines and budgets, follow up with those responsible, track results, and hold yourself accountable.

Business plans are really about getting results and improving your company.

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