The Real Estate Encyclopedia
60 Days In
Category - Real Estate Information Sources - Real Estate Articles

Heading in the Right Direction?

As an ongoing process, business planning has many stages, and throughout each of these important periods it is critical to take some time to re-evaluate and adjust your plans, if necessary. Sixty days into your 2006 business plan is a good time to see what may need tweaking.  You’ll want to check for accuracy, note any changes, continue developing the right habits, and evaluate your direction against your previous intentions.
First check your business plan for accuracy. Two major areas need a thorough review: actual activities and real expenses. Now that you’ve completed your first two months, did you forget to account for anything in your budget? You should be recording all the activities you complete as you move towards your goal. Have you accounted for all the sources of business, and your business-producing activities? Have you have forgotten any activity? Make sure you go back into your plan and add the item and any associated expenses in your budget and business development sections, if appropriate. 

A prime example of this situation might be a direct mail piece you distributed to all of the past clients in your personal sphere and farm database. Did you account for the cost, results, and cost-effectiveness of this marketing project in the appropriate budget?
Another key area of scrutiny is your expenses. Since several real estate overhead expenses are paid at the beginning of the year, be sure to periodically review them. You should be recording these expenses in your business plan or accounting software. Take a good look at your business plan: did you forget to record any of these initial expenses? If so, add them. In the process, don’t forget that changes to your business plan will have a domino effect on other aspects of your plan.

Protocol Pays Off

One secret to success is establishing success-oriented habits. These habits include recording your activities and appointments from all sources of business. Additionally, you should be recording each transaction and its associated expenses, along with the normal expenses you incur throughout the year. Remember the golden rule of sales management, “If you cannot measure it, you cannot manage it.” 

Finally, check your direction and progress. Although you are only two months into this year you should make sure you are laying the proper foundation for future success. We have all heard the “pipeline philosophy” time and time again: keep the pipeline full. A good tip for doing that is to examine your production and activity results:  

  • Record and Check Activities Weekly
  • Check Expenses Monthly
  • Examine Revenue Every Other Month

The reason to maintain the evaluative mindset is simple: activities are the lifeblood of any sales-oriented business, and therefore should be examined with regular frequency. No one has a perfect memory, so as time progresses, you may forget some activities and appointments that you completed. By recording them each week, you will be able to rapidly recall your key tasks.  

Keep a Good Pulse

Expenses can often creep-up and get out of control. Examining your expenses on a monthly basis will keep you on top of your budget and prevent an “out-of-control” scenario. You should be recording your expenses each week, but don’t micromanage your business by examining them that often; a monthly review is sufficient.

Revenue is more unpredictable than the other parts of your business. Revenue may shift from month to month because of delayed closings resulting from things outside your control. With that being said, examine your revenue at least every other month.  Once again, don’t micromanage your business and over analyze your revenue. As long as you are completing revenue-producing activities, things will naturally fall into place.
If you are struggling to manage or monitor all these activities manually, consider using an online real estate business planning and weekly accountability system that can do all this for you automatically. 

Visit CreateAPlan and keep your business moving on the right path.


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