GRI 409 Business Planning - Springfield, MO

Business Planning

2011 & Beyond!

Corky Hyatt, CRB, CRS, GRI & John Mayfield, ABR, CRB, ePro

Missouri Association of REALTORS®

May I introduce to you

Dr. Fred Grosse!

Have a “10” Today!Document your “Mooring

Lines”Practice your “Morning

Ritual!”Enjoy your “Rewards!”

Dr. Fred Grosse’s 6 Rules

• Recognize that life is primary; business funds life.

• Uncover your passions and give yourself permission to celebrate them.

• When working, only engage in top dollar-productive activities.

• Delegate effectively, so you can work less and earn more.

• Focus on what you can offer your clients, not what you can get from them.

• Remember to give back to the community you live in.

What is

Your

Biggest

Challenge

Right

Now?

What Have You Tried?

By Terry Watson!

Terry Watson’s

Top 7 Rookie Mistakes!

1. No Business Plan!

2. Not using resources available to you!

3. Not maximizing your productivity!

4. Not earning REALTOR® designations!

5. Not purchasing equipment as a business entity!

6. Not crafting your message to prospects’ concerns!

7. No income buffer, passive income, or

Poverty Mentality

a way of thinking

…perpetuates poverty …

focus is on what one doesn’t have

rather than what one does have.

A common characteristic is

making fear based decisions.

“Who Am I?”

Audit

Where Am I Now?

• Units closed this year?

Annual increase in the past 3 years?

• Average Commission?

• My average listing inventory

Seller inventory

Listings sold/year?

Percentage of listings taken/listings sold?

Sources of Business?

• Whom do I prospect for seller listings?• Whom do I prospect for buyer clients?• How many contacts do I make a day?• Am I still mailing instead of contacting? (throwing

$ at the business?)• How many property or buyer listings do I take

each month?• How many contacts (How many presentations)

does it take to sign a seller or buyer listing contract?

• What’s my GCI?• What’s my annual expense %?• What’s my profit %?

Work On It & In It!

•Initially, no

less than 10%

on it & 90% in

it!

•Increase “on”

for increased

results!

What’s My Bottom Line?

• GCI? (Gross Commission Income)

• Expense % (gross profit before taxes)

• Profit? (gross profit before taxes)

•Am I pleased with my numbers?

S.

W.

O.

T.

• Strengths

• Weaknesses

• Opportunities

• Threats

Opportunities!

Weaknesses!Strengths!

Threats!

Threats or Opportunities?

4 Key Questions!

MichaelMaher

7L

“So that I may better serve you,

please let me ask you a question.Of the following 4 options, which would your BEST FRIEND or your SPOUSE use to BEST describe YOU?•Straight-to-the-point!•Social and Outgoing•Stead and Dependable, or•Cautious & Perfectly Accurate?

High D’s (Dominance)

Results, control oriented

Direct

Impatient, strong-willed

Quick

Takes Action

Hi I’s (Influence)

People-oriented

Optimistic

Recognition-seeking

Expressive & outgoing

Enthusiastic, energizing

Hi S’s (Steadiness)

Stable, predictable

Deliberate

Consistent

Good listener

Sympathetic

Hi C’s (Conscientious)

Analytical

Accurate and orderly

Deliberate

Correct & quality oriented

Systematic, Planners

For the Dominant person, you will want to include

executive summaries, bullet pointed key details, easy-to-find information that can be quickly reviewed; “executive” styling; bold.

For the Social/Influencer person include

color, interactivity, people-oriented materials; stylishly presented; recognition. Color flyers, web sites with flair.

For the Conscientious person include

accurate details, full explanations; honest and straightforward; correct information; quality. Charts and graphs.

For the Steady person include information focused

on security, dependability; remember their natural fear of change.

• Fears being taken advantage of…

Dominant

• Fears rejection

Influencer

• Fears loss of security

Steady

• Fears criticism

Conscientious

Weaknesses?

• Needs boundaries

• Bogged down in details

• Give in rather than argue

• Resists change• Adjust slowly• Sensitive to

criticism• Can hold a

grudge

• No attention to details• More concerned with

image than results

• Runs over others• Argumentative• Attempts too much

D I

CS

Generation Impacts Attitudes Communicat’n

Style

Technology

Preferences

Silent

Generation

Depression

WWII

Duty, Honor,

Hard Work,

Respect for

rules

Formal

communication

styles

Telephone; Some

use computers-

more comfortable

with written

letters

Baby

Boomers

Era

of Safety,

Prosperity

Rebelled aga.

“hollow”

society

Personal

growth,

achievement,

political

correctness

Learned

computers

prefer

conversation,

esp. telephone

Gen X

Social value

upheavals

Tough,

pragmatic,

individualistic

Adaptive,

balanced, comf.

with casual

communication

Emailers,

Net = source

of information

Gen Y

Global

political

unrest; tech

since birth!

Grew up in

diverse &

multicultural

society; „02

Census = 37.6%

Tech since

birth! Family &

group centered;

Talk cell not in

person!

Cell Phone-

centric! Texting,

IM, cell

applications &

net thru cell

phone

• Mission

• Vision

• Values & Beliefs

• Goals

• Strategies

• Action steps

• Evaluation

• Refinement & Redirection

It’s Not Magic!

Mission Statement

Ralph Roberts Mission:•Customer Focus•Personal Growth•Leadership•Team Concept•Profitability

Strategies?• “Strategic”

planning requires that once your mission, vision, values, and goals have been defined,

• You take the next step, creating strategies to accomplish your goals!

In the rectangle,Write a 1-sentence

descriptionof one of your

goals for the next year!

1st• What needs to

happen first…

2nd• Next…

3rd

• & 3rd to accomplish your goal?

Productivity&

EffectivenessPlanning!

Work “Billable” Hours

Billable hours = hours that produce income!

• Prospecting,

• Presenting,

• Negotiating,

• Closing & Follow-thru!

Alan Domb

• Allan is from your neighborhood. Working with an agent who knows your community can be vital to the success of your transaction. After years of personal and business interaction in the area, Allan has gained an in-depth understanding of the many factors affecting real estate transactions in Philadelphia.

• Over 25 years of experience

• Experienced and skilled negotiator

• In-depth and active community member

• Top producer

• Detail oriented, trustworthy and committed to excellence

• Extensive marketing and advertising background

• Good rapport with lenders, appraisers and all other people involved with buying and selling real estate

• Comprehensive knowledge of neighborhood marketing conditions

• Totally committed to the luxury condo market

• Allan has a a positive attitude, is a good listener and will go the extra mile to make your transaction as smooth and efficient as possible.

ALLAN DOMB REAL STATE Philadelphia, PA

Since 1980, Allan Domb and his highly reputable real estate brokerage firm have been known throughout the United States as key contributors to Center City Philadelphia’s luxury condominium market.

Today, Mr. Domb continues to control 75% of Center City luxury condominium sales in buildings such as Academy House, The Barclay, Center City One, The Dorchester, Hopkinson House, Independence Place, Pier 3, Pier 5, The Philadelphian, Society Hill Towers and Wanamaker House.

Nationally, Mr. Domb has been ranked the top producing residential real estate broker for the greater part of the past twenty years.

Protect PRIME Time!

Prime time = “belly to belly” buyers & sellers– Prospecting, presenting,

negotiating and closing plus following through!

• NO Administrative tasks during PRIME TIME!Administer in non-consumer hours (early or late)

Eliminate $ Wasters!

• Track “ROI” for all promotion expenses

• Plan expenses a year at a time

• Use a business budget

• Hold yourself accountable to the plan and the budget– No more “just one commission”

excuses!

• If you need help, establish a “Board of Directors” with people you respect!

Practice Positive “Dumping”

• Spam?

(Panda, McAfee, Norton)

• Spy-ware?

• Use Message Rules

in Outlook Express or Outlook– Auto emails into folders or

– Delete them before you see them!

– Capture leads with message rule flyers to emails from

REALTOR.com leads, your firm’s website leads, or your own web

leads

Do It Now!• Do it now!

• Do it now!

• Do it now!

• Do it now!

• Do it now!

• Do it now!

• Do it now!

• Do it now!

You never

did it anyway!

Cold Calling’s

Dead!So

What?

Build My Referral Business!

1 • Sit with REALTORS from other areas in GRI, CRS, ABR Courses!

2• Use referral-service business

card when attending “referral-rich” events!

3•What else can you do?

Do you

trulydesire

massive success?

Make Your Business

Technology BasedNot

Paper & Clutter Based!

Co

rky

Hy

att

QR

Co

de!

Ally or Foe?

Communicating in a World Full of Noise!

Social Media

Facebook

LinkedIn

YouTubePersonal

Benefits of Social Networking

• Easy to get started!

• Not a techie? You can still network!

• Immediate gratification!

• “One-Click” referral sending/receiving!

• Blogging, social networking can create credibility!

• Excellent access to Gen X and Gen Y

• Makes information readily available to consumers

• It’s FREE!

How can you use social

networking to “incubate”

internet consumers?

Who is “New” ConsumerNet

Buyer

Traditional

Buyer

Time before contacting agent 9.3 weeks 4 weeks

# Homes Previewed with agent 13.6 25

Importance of Agents response time in

selection process?

70% said

Extremely Important

40% said

Extremely

Important

Typical Response Time Expected Versus

Actual Time?

36%

Instantly

16%

Instantly

Price versus Location as first concern 38% said Price 1st

23% said Location 1st

concern

Location is first

concern

Who is Internet Buyer Today?

• 84% of all buyers are internet consumers

• Expect “instant” response

–56% expect a response within 30 minutes

–Typical response by real estate agents was 10 hours, 16 minutes

• Do a lot for themselves – researching 1st on their own

How May Hats

Can You Wear?

• Listing Agent?

• Buyer’s Agent?

• Ad Man?

• Sales Mgr?

• CIO (Chief Info Officer)?

• Accountant?

• Webmaster?

Assistance For

“Me, Inc.”

• Live assistance

• Virtual assistance

• Choosing the best “Office Manager”

– Create the job description, i.e. which “checklists” will you delegate first, later?

– DISC (Assess the personalities first)

• We hire for personality and

• Fire for failure to perform!

Have You Developed

YourExit

Strategy?

For a sample you can use

See Page 15…Sale to Closing

Checklist

Structural Decisions

• Legal Structure – Sole proprietorship,

partnership

– Corporation (S, C, or LLC)

• Budgeting

• Organizational structure – Agent alone

– Add technology tools

– Clerical support

– Buyer and Seller agents

– CEO & into Exit Strategies

Business Budgeting

Budgeting & Taxes

Checklistof

Real EstateBusiness

TaxDeductions

fromwww.Inman.com

Set Deadlines!

• Write plan deadline:• Budget deadline:• Tech-equipment review deadline:• COI clean-out deadline:• Computer back-up deadline:• Legal structure review deadline:• Schedule a physical deadline:• Schedule time off deadline:• Insurance review deadline:• Living Trust deadline:

Resources!Check out the Links!

CRS members comprise just 4 percent of all REALTORS®. CRS Designees earn an average of $155,876 annually — three times as much as the typical REALTOR® who sells residential real estate.

EFFECTIVENESS & EFFICIENTY

CHECLIST:

How to Shut Down My Time, Effort, & Money

Leaks!