In real estate, if you wait until December or January to start planning for the next year, you’ll be at least 30 to 45 days behind the eight ball.
As you know, when we put a home under contract, the typical turnaround time is 30 to 45 days. This is why I have all my team members making their business plans now in October—so we all have a roadmap for 2019.
In making this roadmap, I have them submit their income goal for the year, and they work backward from that number. They need to know the number of buyers and sellers they’ll work with, the number of appointments they’ll be on, and the listings they’re taking in order to hit that goal. To calculate the exact numbers, I created a spreadsheet based on an economic model I acquired at a former brokerage, and in the video above I’ll show you how it works.
For your convenience, I’ve attached timestamps of the video so you can reference each key point:
- 3:58 - A sample economic worksheet.
- 7:23 - How many weekly, monthly, and yearly buyer listing appointments you can expect from a $100,000 income goal with a 50/50 split between buyer and sellers.
- 10:33 - The daily, weekly, monthly, and yearly conversion ratios for these appointments.
- 12:38 - The same conversion ratios from the seller side.
- 14:32 - How many seller appointments, listings taken, and sales you’ll need to make $100,000 in a year.
If you want to be successful in real estate, you need a business plan. If you don’t know where you’re going, you’ll never know where to start, so your first step should be to have an income goal for 2019. Having an income goal in mind and a spreadsheet like the one my team has makes everything easier. You know what to do to hit your goal, and you know what to do to get back on track if you fall behind.
If you’re interested in building a business plan or you have any other questions, don’t hesitate to reach out to me. I’d be happy to help you.