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Recipe for Success!

(Published on - 12/16/2016 6:34:34 PM)

This is the time of year when people are busy whipping up their favorite cookies and joyfully sharing recipes with one another.  I have a favorite I’d like to share.  It’s what I call a recipe for success, “The Business Plan”.  Similar to baking cookies, there are essential ingredients and steps to follow to create a meaningful Business Plan.

There are three main ingredients you need for a good plan:

  • Current year sales production numbers.  Volume dollars, number of units, GCI (once we hit November, you can forecast very close to where your numbers will be at the end of the year).
  • Current year activity.  Number of appointments, number of accepted offers, etc.
  • Gross commission income (GCI) goal for the upcoming year.

Follow these steps to create a basic, high level Business Plan:

  • Set a GCI income goal for 2017.  According to Floyd Wickman, 20% year-over-year growth is a manageable goal.  But don’t be afraid to dream big and set a “stretch goal”!
  • Look at your 2016 production numbers and calculate the following:  (A) average commission $ per closing, (B) percentage of total closings that were buyer side and % that were seller side.
  • Divide your 2017 GCI goal by your average commission per closing to get the total closings you’ll need for 2017. Note: adjust the commission number accordingly if you plan to increase your average commission next year.
  • Apply your percentages of buyer vs seller closings to the total closings goal to get your breakdown for 2017.

Now, if you’re someone who tracks their activity (i.e. # of listing appointments, # of listings signed, % of listings signed that closed, # of prospecting phone calls made, etc), you can expand your basic Business Plan to a more meaningful level and determine how many listing appointments, showings and accepted offers you’ll need in order to reach your 2017 GCI goal.  From there you can take an even deeper dive into your data and set monthly, weekly and even daily activity goals.

If you haven’t tracked your activity, now is the perfect time to start!  It’s important to know your numbers so you have a realistic road map to achieve your goals.  Looking for a helpful Business Planning worksheet that you can use to grow your business? We have one we would be happy to share!  Just email beckywilde@realtyexecutives.com and in the subject line put “I’m looking to grow my business!” and we’ll send you a copy of it!

Take some time off during the holidays and set your goals.  Make it enjoyable, meet with other agents and have a Business Planning lunch!  Remember what Yogi Berra always said, “If you don’t know where you are going, you’ll end up someplace else.”

Here’s to a prosperous 2017 for all!

Tonya Thomsen

For more information about Realty Executives Integrity, and to find out how YOU can take your business to the Executive Level, contact a member of our Professional Development Team at:

MakeYourMove@RealtyExecutives.com

262-364-0572

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