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October 30, 2018

Business Planning - Start with your Vision

You need to create a "Vision." We have all heard it before, "If you don't know where you are going, any road will take you there."

What is Your Vision? How do You Create Your Vision?

Imagine it is the end of your real estate career. If, at the end of your real estate career, people were asked to describe you, your business, your contributions and your achievements, what would YOU want them to say?

The answers to the above questions describe your Vision.

Now you need to create a business plan to move you toward your Vision.

All real estate professionals need to create a business plan. Every year you need to examine your goals and objectives and figure out what you are going to do to achieve them. Part of your plan will be your budget. In addition, conducting business reviews will help you determine if you are "on plan."

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 and congruence.

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 that 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 of business plans only for starting a new business. A business plan is also vital for running a business. Businesses need plans to optimize growth and development according to priorities. You establish the priorities as the owner of your real estate business.

Create a 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 are what make things happen. Your brilliant strategies and beautifully formatted planning documents are just theory unless you assign responsibilities, with dates and budgets, follow up with those responsible, and track results. Business plans are really about getting results.

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