Creating your real estate business plan

Posted by Dan Miller, REALTOR on Monday, April 23rd, 2018 at 6:48am.

If your goal is to become a successful real estate agent, there's no doubt you need to grow and nurture your database. Just as important, you need a solid business plan. What is a real estate business plan? Within our team, it's each agent's individual approach for growing their pipeline of future clients. In this real estate careers post, we share our suggestions for creating a good business plan, using one agent's real life plan as an example. 

An example of a good real estate business plan

These last few months we've been chatting with an experienced agent from another market. She'll be relocating to Madison soon, where she'll be resuming her career in real estate. Starting over in a brand new market would be a mountain-sized challenge for most people, but not for this agent. We believe she'll be successful because she knows exactly how she's going to grow her business here in Madison. Here are a few highlights from her plan. 

Business plan highlights

  • Contact plumbers, handy people, carpenters, electricians, organizers, attorneys with specialties in elder care; meet for coffee.  Present my need to have trusted referrals for their business, and ask them to refer me.  Add new contacts to database.
  • Be a constant presence in my community through walking the neighborhood and attending condominium association events, promoting our team and our resources. Add new contacts to database.
  • Volunteer at Habitat for Humanity Restore two times each month.
  • Run an ad in my church bulletin and attend church events (as well as signing up to be a lector).
  • Door knock expired listings 3 to 4 times each month. Add new contacts to database. 
  • Do open houses as often as possible, 3 to 4 times each month. Add new contacts to database. 

Five keys to a good business plan

At first glance this business plain might seem too simple, but it actually checks all the boxes for our team. Here are the 5 traits we look for when we ask agents to create their plan. 

The business plan is proactive

Too often agents join a brokerage or a team without having a clear understanding of how they'll grow and sustain their business. Sure, some are able to get a few quick closings under their belt, but without a proactive plan most agents end up struggling over the long-term. This is why close to 90% of all agents are out of the business within 5 years. This agent clearly belongs to the other ten percent. She knows up-front exactly how she'll be growing her real estate business. 

The business plan is focused

This business plan includes only a handful of prospecting activities, not twenty, so there's no risk of this agent being distracted by "focus creep". All she needs to do is focus on doing a few things well each day. As long as she consistently applies herself to her core prospecting activities, she'll do just fine in her new market.   

The business plan leverages individual strengths and interests

This is a great business plan for this agent because it has her working in her sweet spot, which is face-to-face prospecting. She's at her best when she's in a one-on-one setting. She's a friendly and nurturing person at heart, and she connects with people quickly. Even better, she's applying her plan in the areas of her life that are most important to her - in her community, her volunteer activities, and her spiritual side, too. 

The business plan is relationship and service-based

Everything in this business plan is about building new relationships. Underlying all of this is the agent's commitment to serving people and earning trust. As she gets established here in Madison, she'll be hyper-focused on meeting new people and helping them achieve their goals. This relational approach has proven over and over again to be the best approach for growing a successful referral-based business. 

The business plan feeds a database

This agent will be adding new contacts to her database every day. And as her database grows, she and the team will nurture her contacts by offering monthly newsletters, quarterly events, and other items of value throughout the year. She'll be in constant contact with her database as she focuses on serving each person and nurturing each relationship. 

Great things happen when you have a great business plan

A well-defined business plan is a requirement for any agent who joins our team. The good news is we can help you create a plan that's a good fit for your unique interests and strengths. Even better, great things will happen to your business when you consistently apply yourself to your plan.  

Our real estate team is growing because each agent has a plan

We're always on the lookout for great people who buy into creating and applying their own individual business plan. And we'd love to hear from you if you buy into this philosophy, too. Feel free to call Dan to learn more about the opportunities on our team. We're always up for talking real estate :)

For more info on our team philosophies, check out these articles

This article is published courtesy of:
Dan Miller, REALTOR
Mad City Dream Homes & RE/MAX Preferred
610 Junction Road #205, Madison, WI, 53717

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