Business Planning in real estate is crucial in keeping you on track of your financial goals. By identifying your net financial goal, your average sales price and commission rate, you can begin to lay out the plan of the number of units or closings you will need.
Conversion rates from appointments to signing buyer broker agreements and listings agreements and conversion rates into sales/closings also has to be factored in. Gaps in conversion may be a sign to improve your objection handling skills or closing skills.
Lead generation and identifying your sources of business is at the top of your sales funnel. As a successful agent or team, you have to make a commitment each day to lead generation and connecting with potential buyers and sellers.
Also, understanding your buyer and seller mix impacts your business planning. To best insulate your business from a shifting market, your mix should be 50% buyers, 50% sellers. This enables you to make quick adjustments to stay on track with your business plan.
Reach out if you need a business consultation and 2019 plan for your business. Knowing your numbers and having a blueprint will lead to a financially successful year.