The best way to have a great year in real estate is to have a great fourth quarter the year before. Why? Because real estate typically follows a 90-120 day sales cycle, which means the business you do now will pay off in three to four months.
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This article was last updated on September 29, 2021.
The best time to start your 2022 business plan is right now: Book a one-day offsite business planning session into your calendar now. Simplify your business plan: one page is enough.
You might think you still have plenty of time, but maybe not as much as you think.
Most agents wait until they return from vacation to plan their year. I’m sure you know how it goes: come back from your break in early January. Start the year off smoothly and start thinking about your goals. Then, before you know it, it’s mid-January and you haven’t even started executing your plan.
At this point, everything you do will only show up at the end of the first trimester, and a quarter of your year has passed.
On the contrary, the best way to have a good year in real estate is to have a good fourth quarter the year before.
Why? Because real estate typically follows a 90-120 day sales cycle, which means the business you do now will pay off in three to four months.
For this reason, towards the end of November and the beginning of December (or before), I reserve a full day offsite planning session with my team each year to plan for the next year, and I highly recommend that you do the same.
If you don’t have a team, do this exercise yourself. Here is our typical schedule for the planning session:
Plan a day
Your planning session should be offsite – away from the office. It should be in a place free from distractions so you can really work to your business (rather than in your business.)
I like to go to the hotel or the resort for the day; I find that being in a luxurious environment helps you to think big.
Do a SWOT analysis
If you haven’t heard of a SWOT analysis, it means Strengths, Weaknesses, Opportunities, and Threats (WORK).
- What are you really good at?
- Where are the holes in your business?
- What market opportunities can you capitalize on?
- What are the threats to your business?
Evaluate your business. Ask yourself: how did we do it, in terms of numbers? For this section, bring the data – not the drama.
Focus on what really happened, not what you wanted to happen. Review your numbers from the previous year – sales, income, expenses and profits. Review your Income statement.
Then, mentally realign your priorities based on your findings.
Consider next year
The business owner (probably you) should state his vision for businesss for the following year. In other words, tell the rest of the team (or if it’s just you, tell yourself!) Where you want to be by the end of 2022.
Don’t censor yourself. Write your vision for your business in a perfect world and have fun with it. Go big. You can always cut back later.
Put your action plan on paper
You need a roadmap to achieve your vision. Some tips here. First, if you are doing something right or if something is working, do Following of it.
If something is not work, and you gave it a solid effort – Stop I do it. Make your business plan Easy. I’ve seen complicated 12-page business plans that took a long time to create and ended up somewhere in a drawer. My rule of thumb is to make your business plan one page.
List your main goal for the year, three main priorities for achieving your plan, and then write down five strategies for each of those priorities.
Now take action and book your full day planning session in your calendar.
Danny Batsalkin is the founder and CEO of DSCVR real estate network. Follow him on Instagram Where Facebook.