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Donít Just Set that $1 Million Goal - Attain It!
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High Aspirations

Do you have your sights set on becoming one of those millionaire real estate agents you keep hearing about? Would you like to reach that goal soon, possibly even during this next year? Business advisors and experienced entrepreneurs alike generally agree that you should develop a business plan before you start any business – and this is especially true if you want to become a millionaire.

But what about the Real Estate Professional – are you exempt from business planning – especially those of you who have been in the business for many years and feel like you already know all the ropes? Isn’t the effort required to formulate a business plan just overkill? Absolutely not, according to real estate industry research. It is, in point of fact, one of the leading tools that separate a winning, productive, multi-million dollar real estate business from one that just hobbles along, hoping for the some of the breadcrumbs from the feast of its more savvy counterparts.


What is a Real Estate Business Plan?

A business plan is a written summary of everything you already know about your business, including your industry, and it also outlines the future you expect to create with your business. A well-crafted business plan is realistic, but conveys the energy and optimism you feel about your business's future. It is an opportunity to convince the world that your idea is worth the time, energy, and money necessary to make it a reality.


Common Planning Mistakes

Let’s take a brief look at the facts. A business plan can help you move forward, make decisions, and encourage the success of your business endeavor. You might develop a fairly simple plan at first, and then elaborate as you advance. While including the necessary items in a business plan is important, you also want to make sure you don’t commit any of the common business plan deadly sins:
  1. Putting business planning off
  2. Treating cash flow too casually
  3. Underestimating your own good ideas
  4. Allowing fear and worry to paralyze your progress
  5. Creating vague goals without specific steps to achieve them
  6. Including too many priority activities
  7. Inflating expected financial results with unrealistic numbers

Business Plan Usage
  • Use a business plan to set concrete goals, step-by-step action plans, responsibilities, and deadlines to guide your business.
  • A good business plan assigns tasks and sets milestones and deadlines for tracking implementation.
  • A practical business plan asks the five key questions that pertain to how you will accomplish each goal you set.
  • As part of the implementation process, a finely-tuned business plan should provide a forum for regular review and course corrections.
  • Good business plans are practical, not esoteric. Ultimately they answer a simple question, “How do I get from point A to point B?”

Business Plan Pitfalls
  • Don't use a business plan to show how much you know about your business.
  • Don’t write a long-winded business plan – no one enjoys reading them.
  • Don’t write unrealistic plans; you will only be setting yourself up for failure.

Business Plan Contents

There are conventional contents of any standard business plan. For example, a business plan normally starts with an Executive Summary, which should be concise and interesting. People almost always expect to see sections covering the Company, the Market, the Product, the Management Team, Strategy, Implementation and Financial Analysis. Here’s a suggested order:
  1. Executive Summary: Write this last. It’s just a page or two of highlights.
  2. Company Description: Legal establishment, history, start-up plans, etc.
  3. Product or Service: Describe what real estate niche you’re selling into or from. Focus on customer benefits that distinguish you from your competition.
  4. Market Analysis: You need to know your market, customer needs, where they are, how to reach them, etc.
  5. Strategy and Implementation: Be specific. Include management responsibilities with dates and budgets. Make sure you can track all results.
  6. Web Plan Summary: For e-commerce, include a discussion of websites, development costs, operations, and sales/marketing strategies.
  7. Management Team: Describe the organization and the key team members.
  8. Financial Analysis: Make sure to include your projected Profit and Loss and Cash Flow.

When Do You Need a Business Plan?

If you want to be a millionaire in 2006, then you’ll need to start working on your plan right now, today. Remember that if you are writing a business plan for real estate sales planning purposes, be specific about what goals you wish to achieve, and how you are going to achieve them. Other business planning possibilities are for those who want to grow their existing business, create an exit strategy, or develop a new marketing niche.

Effective business planning will show you how to reach the particular level of income that you desire by completing certain daily tasks and closing a specified number of listings and buyers/sellers. A good business plan will account for overhead and transaction costs, and enable even the newest rookie to make better business decisions. You can also add an assistant or a new marketing campaign’s projected expenses, and business planning will show you how many extra deals you must do to cover your new expenses.

Now you can determine the degree of realism your plan expresses – whether or not the expenses you will incur are worth the next twelve months of your time and energy. Out of all the business planning tools available to real estate professionals, a company called CreateAPlan has created the most agent-centric, fiscally-oriented, economical option. All input can be accomplished online, with no software of difficult books to read, and the plan may be modified any time your circumstance warrant an improvement.


About Create A Plan, Inc.

It is a simple business planning solution for the Real Estate Professional who is serious about his or her real estate career. This online business planning software provides complete monitoring of all key business indicators, including marketing events, listings, sales, expenses, etc. CreateAPlan also provides weekly monitoring and reports. For more information visit CreateAPlan, Inc., a part of the RealtyU® Family of career development companies and services.




References


External Links
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