What should a business plan do for you? Appease your owner? (I’ve
been there, so I know….) Or, should it actually provide you specific,
day-to-day guidance about what to do to make your business thrive? If
you’re a practical person like me, you don’t like to do ‘busy work’. You
and I believe, then, that a business plan should have a practical
application for every day of your business.
At the end of this blog, I have a flow chart of my strategic business planning system for leadership for you. Are you covering all these bases?
Take this quick ‘exam’ to see how your business plan stacks up: (and give it to your agents so they can check their plans, too).
1.
By going through your process of business planning, you get the
‘vision’ and mission principles to make the positioning, marketing,
hiring, and termination decisions right for your particular
business. T F
Got that vision? Few business plans start with vision.
This causes huge problems when real estate professionals try to
implement—such as implementing a marketing plan. A potential coaching
client told me she ‘wasn’t very good at marketing’, and wondered how to
get better. You can’t become a great marketer unless you have a very
clear vision of who you are and where you expect your journey to take
you. It all starts with a crystal clear idea of your vision, mission,
and positioning in the market. Your business plan should contain these
very important statements. Then, when you design an institutional
marketing plan, you’ll be able execute your thoughts and feelings
visually.
If your vision and mission aren’t well defined in your
business plan, you simply have no solid foundation to make those tough
leadership decisions.
2. Your business plan starts with reviewing
and researching the past year in all your business areas.
T F
Have you really reviewed your situation? If your planning ‘template’ doesn’t lead you through the analysis of key business statistics, you simply don’t know what happened.
So, you can’t possibly make decisions for next year, because you don’t
know whether to do it, stop doing it, or start doing something
differently!
Example: In your office, what percent of your
listings sold within normal market time? What was the percent of list
price to sale price? Few business planning templates ask you to grab
these statistics and analyze them. Yet, these are the statistics that
directly point you to your strategies and tactics for the coming year.
3.
Does your business plan have an ‘action plan’ area, so you can
translate your yearly and monthly goals into daily actions—and actually
schedule these actions?
T F
No action plan means you just wasted a lot of time: I
have seen so many business plans that only played on the ‘results’
playing field. Writing down the results you want are great, but if your
plan doesn’t get down to where the rubber meets the road, (what you need
to do daily), you simply are doing an exercise. In other words, you
have to get past the ‘what’ and get to the ‘how’ and ‘how much’.
For
example: You may say you want to increase your ‘sold’ listings by 25%
in the coming year. How are you going to do that? Here are some
possibilities for your action plan:
Through recruiting:
Hire 12 listing agents that have demonstrated they list properties that
sell quickly. That’s 1 per month. That’s 5 interviews per month. That’s
100 recruiting calls per month. Now, you can break that into weeks and
days.
Through training: After researching each agent’s
numbers of listings and listings to sold ratios, you are going to create
and implement a high accountability training program to teach your
agents the skills of successful listing. You will put your training
series, which will be a series of four classes, presented 3 times a
year, on a training calendar to hold yourself accountable to do them.
(And, a calendar is a great recruiting tool).
4. Does your plan consist of integrated, ready-to-follow systems so you can delegate?
T F
Ever thought your systems WERE your plan? Michael Gerber, author of The E-Myth and The E-Myth Revisited, says that a business plan consists of the integration of systems.
Most managers and agents feel they are working too many hours. They
want to be able to delegate specific duties. But, without systems and
processes in place, delegation is impossible.
Is your Business Salable?
Pretend
you wanted to sell me your business. I walk into your office. What
systems do I see? What systems can I buy from you, so I don’t have to
‘reinvent the wheel’? What systems do you have that integrate and
reflect your values in the overall way you do your business? If you
don't have systems in place that I can readily take over, I might as
well start my own company!
How did you do on the ‘exam’?
Here’s your opportunity to think through your business at a much
deeper, more meaningful level. Doing so will re-motivate you, re-ignite
your passion, and provide you some solid answers for next year.
Click here for an overview of what a leadership planning system should contain.