The Real Estate Encyclopedia
The 10-Minute, 100-Day Business Review
Category - Real Estate Information Sources - Real Estate Articles

Test Yourself

Can you believe the first quarter of 2006 is almost over?  Before the second quarter slips by you, get into the quality habit of reviewing your quarterly results against your business plan. Use the following scoring system to grade your performance.  Give yourself points based on completed work - how close can you get to a perfect 10?

  • 1 point - for recording all activities and appointments.
  • 1 point - for entering actual expenses itemized or in aggregate.
  • 1 point - for entering all transactions for the quarter.
  • 1 point - for separately entering transaction expenses associated with closed transactions.
  • 1 point - for meeting expense projections.
  • 1 point - for meeting number of closed transactions projections.
  • 1 point - for meeting activity projections.

Bonus Points:

  • Add 1 additional point for each projection you exceeded in activities and closed transactions.
  • Add 1 final point if you spent less money on your overhead or personal marketing than you originally projected.


The Grading System

Score: 0-2

Shame on you for achieving far below your potential! Shape up quick, or your competition will ship you out!

Score: 3-4

Be careful – right now you look a lot like Mr. and Mrs. Average Agent – and no one wants to be in No Man’s Land.  It’s time to take things to the next level.

Score: 5-7

Good job – you are better than most other agents. You even have the makings of being a true long term Top Producer.  Make sure you have a solid plan, tweak it, stay on track and work it.

Score: 8-10

Excellent - you’ve got your act together!  Looks like 2006 will be a great and profitable year for you.


Quick Fixes & Adjustments

Part 1 - Activities and Appointments

To access your business plan, start by examining your activities.  Did you record all of the activities you are performing each week?  This is a MUST-DO, and is the basis for making better decisions and running your business like a business.  If you didn’t, use the “Letter to Thyself” tool and write a letter stating why you cannot spend 15 minutes a week taking care of your business.

Examine those categories in which you did not complete 100% of the projected number of activities.  Write down why you did not complete these activities.  Then ask yourself if this is an activity that you need to re-examine.

If so, follow these steps:

  • Is this activity producing appointments for you?
  • Does this activity cost you money out of pocket?
  • Are you getting closed transactions from this activity?
Before determining whether to stop doing an activity that does not seem to produce anything, ask yourself the following questions:

  • Is this activity part of general awareness or specific intent?
  • What are the specific costs associated with completing this activity?
  • Can I change the activity to make it more productive and cost-effective?

Now look at the activities that you met or exceeded performance projections.  Are there similarities between these activities? Do you like doing these activities more than the ones that you did not meet projections?   Activities that are beneficial and have little or no cost should remain in your plan.  Review all activities and reward yourself for completion and a job well-done. 


Part 2 – Expenses

Expenses are the next grading subject.  You should have reviewed your expenses after the first month, just to make sure everything was being entered.  Now is the time to start looking more closely at the expenses you recorded. 

  • Are you meeting your plan for overhead dollars spent?
  • Are you over or under budget for any particular marketing campaign? 

After the first quarter you should have a good understanding of the monthly costs you must incur to stay in this business.  Remember that changes to your business plan will create tangential effects, so make sure that you fully understand how the changes you've made will impact your overall plan and business development strategy.  Be careful with cutting personal marketing campaigns; make sure the desire to reduce costs does not hinder your business. 


Part 3 - Transactions

Review the transactions you closed so far this year.  Transaction review has two essential parts: closed transactions and associated expenses.

Grading your Closed Transactions

  • Are you in line with your projections?
  • Is your business coming from the sources you anticipated?

 Grading your Transaction Expenses

  • Are you recording the associated transaction expenses for each transaction?
  • Are you staying in line with your projected directed expenses from your business plan?

You might notice that we’ve made no mention of revenue to this point.  When reviewing your first quarter, focus on your activities, expenses and transactions.  Planning and budgeting is all mathematical.  If you are meeting your goals for expenses and closed transactions, there are only two reasons that your revenue/income goals would not be satisfied:

  • The average sale price of the homes you have closed is less than projected.
  • Commission earned or charged was short of your projections.  If this is the case, examine each transaction and ask yourself why the commission was lower.


Summary

Your first quarter should be focused primarily on reinforcing the success-oriented habits of recording your activities, expenses and transactions.  Remember the golden rule of sales management, “If you cannot measure it, you cannot manage it.” 

You can perform all of this tracking manually, or even on an excel spreadsheet, or you can use the most comprehensive online real estate agent-specific business planning and management tool: CreateAPlan. This online system performs all of your calculations instantly and keeps track of all your monthly numbers and weekly performance.





References


External Links
www.isucceed.com
 
 
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Real Estate Information Sources - Real Estate Articles
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