December is upon us! It that time of the year again… not just the holiday season, but the time of year when we prepare our mindset and businesses for the coming year. This is a great time to review the past 11 months, what has worked, what has not. How many of the goals on your list for the year have you reached? How many did you miss? Wait… you didn’t set any goals this year? Why not? Well, even if you didn’t set any for this year, you can for next year, so let’s get started.
So why is it important to have business goals as a real estate agent?
I’m sure you have heard the saying, “a goal without a plan is just a wish (or a dream).” Goals help us set a path for our lives. Life goals can include lots of different areas: business goals, educational goals, money goals, and family goals. Today we are going to focus on business goals and planning.
Your number one goal for the coming year should be to create a business plan.
A business plan is a very important strategic tool for real estate agents (remember, you are an entrepreneur now).
A good business plan will not only help you to focus on the specific steps necessary to make your business ideas succeed, but it will also help you to achieve both short-term and long-term goals. This plan should include an overview of what you plan to accomplish, along with the specific action steps required to make it happen. Here are five reasons a business plan is important in your real estate business:
- To set a clear statement of mission, vision, and core message of your real estate business. The most essential part of any business is to have a clear and concise purpose for your company.
- To focus more of your energy and time on what really matters. Being productive at work every single day is crucial. When we have a plan, we can easily execute our work because we have action-based tasks that reflect our business goals.
- To understand what your business is lacking, including strengths and weaknesses. There’s always a weakness and strength in every business, if you have a well-thought-out plan, you can take a step back and assess your performance. Be honest with yourself in this assessment.
- To create a proper marketing budget. Increasing your brand awareness and promoting to people can be costly, especially if you haven’t planned your budget for your marketing campaigns. Having a plan that covers your finances will help you minimize your cost per transaction, increase a chance of better ROI, and help you reach your business goals.
- To create a roadmap for achieving your goals and objectives. Having a clear roadmap for your business points you in the right direction to stay focused to help you reach your business goals.
Did you notice a common word in most of the reasons why you should have a business plan? Goals. A good business plan will help you get on track and stay on track, even if you hit some roadblocks along your way. It will help you to continuously manage your business and properly assess any changes that might need to be made to set up your business for long-term success and to reach your yearly goals!
TIP: In addition to a full-blown plan, create a one-page summary to hang in your office so you can see it every day.
What kind of goals does one set as a real estate agent?
Create goals that will put you on the path to success and create a successful mindset.
Set a few goals for the year, maybe 1-2, don’t go overboard and be overzealous – especially for your first year. I have seen new agents’ set specific goals such as:
- I want to make $100,000 this year.
- I want to sell 15 houses this year.
- I want to add 200 contacts to my sphere of influence this year.
- I want to build a network of 20 specific business vendors to lead generate with.
- I want to set 2 listing appointments per week.
- I want to help 20 renters this year.
Once you have established your main goals, set action goals like:
How many Buyers I will help this year:
How many Sellers I will help this year:
How many renters I will help this year:
How many total transactions I will complete this year:
How many times per week I will post on social media:
How many open houses I will do this year:
How many networking events I will attend each month:
How many trainings I will attend each month:
How many pop-bys I will do each month:
How many calls I will make each week:
How many events I will sponsor this year:
Don’t just pick a number by pulling it out of the air. Pick a number that makes sense for you and connect your action goals to your main goals. You can then break these overall action goals down monthly or weekly. Track where you are on your timeline each month. Learning how to time block is beneficial when it comes to doing the action items needed to help you complete your action goals.
Setting business goals will help keep you on track for success. The real estate industry is very competitive. Don’t lose your focus, key your eye on the prize (goals) and you will be successful next year and, in the years, to come! Evaluate your success in December of next year. Figure out what worked and what did not to revise your plan for the following year. Good luck! Here’s to GREAT success and goal achievement in 2020!
Stay tuned for my next post on the importance of setting personal goals as well!