It is essential for a real estate as for a real estate agent to count with an annual business plan. Planning and arranging the actions based on the necessities and specific limitations allows the professionals of this sector to get better levels of productivity.
The model Plan on One Page (to structure the targets and the annual strategies) helps the real estate professionals to focus on the necessary actions in order to achieve their targets.
The annual planning of the real estate business based on the model 1/3/5 helps the real estate agents or agency to focus on the key actions that lead straight to the wanted results.
In the same time, the 1/3/5 model of real estate professional action is very simple to structure and it avoids the situation in which the real estate agents or agency recur to very complex business models, especially to those models that they cannot afford.
This does not mean the model will be a less complex real estate business model. On the contrary, this model pretends to plan and structure the business plan in a more simple way, reflected on concrete actions.
Certain elements such as the available resources and the specific limitations of the agency must be isolated in order to structure an annual real estate business plan in one page.
Based on these limitations, we need to structure the necessary steps to follow in order to achieve the objectives.
It is very important to gather realistic objectives and to manage to avoid any element that might block the achievement.
This is a practical and motivating model, because the real estate agents experience a productive change every time each element of the plan is achieved.
In the same time, this model allows the real estate to visualize the increase on the direct line up with the annual targets and it confirms that objectives are systematically achieved in a dynamic way.
How to create a real estate business plan in one page.
Number 1 means the main target, number 3 represents the actions and priorities that must be implemented in order to achieve the target and number 5 reflects the strategies that must be implemented in order to link the three actions to the target.
This is a fractal model that is developed in a structured way linked to each element needed in order to achieve the target.
1 – Set the main target.
The first thing to do is to set a specific and measurable target to be achieved next year. Real estate agents set targets such as the quantity of sales, the gross income of the commissions, the number of the sold properties and several other targets.
It is important to set a main target that has a numbered value associated to it, so we could break it down by weeks, months or quarters in order to measure the progress along the whole year.
For example, a real estate agent who sets his target of selling 48 properties per year, must close 4 deals per month or achieve a sale by week.
3 – Set the 3 priorities in order to achieve the main target.
The annual real estate business plan must be focused on something in order to be effective.
There are 3 priority areas that need to be paid attention to during the whole following year. These priorities must be represented by some tasks or actions required in order to achieve the main target.
Priorities are the big tasks that are showing the productivity level in a way or another.
Examples: creating a new online website for each agent, using a new system of managing the client database, hiring an administrative assistant, developing a specific action plan or changing the real estate CRM.
5 – 5 strategies for each priority.
It is necessary to create 5 strategies that can be implemented in order to get to solve each of the three priorities set. Each strategy must represent a specific action that must be linked to each priority.
The key to develop effective strategies is to base them on each priority. If not, the real estate professional will only achieve a list of endless tasks.
Targeting the resources according to the priorities set eases the achievement of the target.
Examples of annual real estate business models.
The following examples pretend to show the structure of the annual real estate business model previously presented. They are also useful to a real estate agent as to the agency.
When we want to achieve better levels of productivity, we need to implement different models adapted to the organizational structure of the real estate in a simultaneous way and the models must be applied in collusion.
Example for the Business Plan for a real estate agent.
- Commercial target: sell 45 properties (closed deals).
The 3 priorities needed to achieve the target.
- Implement an online real estate strategy.
- Create a daily call to action.
- Organize and maintain the database updated on the real estate CRM.
5 strategies for each priority.
- Create or update the professional social media profiles.
- Create social media pages on different platforms.
- Set an action plan in order to expand the contacts network.
- Generate a community around the profiles and social media pages.
- Develop a real estate blog separate from the real estate.
Generate a daily call to action.
- Generate a daily call to action from Monday to Friday.
- Analyze the obtained results every Monday at the same hour.
- Link each call to action to the automatic system of notifications.
- Revise the compared data in a constant way.
- Contact 5 potential buyers per week and sell a property every month.
Organize and maintain the database updated.
- Check all client data included in the database of the real estate CRM.
- Contact 10 new potential buyers per week (email, phone call, etc.)
- Add 10 new potential buyers to the database.
- Set constant automatic sending of emails to the contacts from the real estate CRM.
- Systemize the campaign on the calendar in order to get more potential buyers.
Example of an annual Business Plan for the real estate.
- Commercial target: selling 180 properties.
The 3 priorities needed to achieve the target.
- Customer service.
- Increasing the real estate productivity.
- Hiring new members for the real estate team.
5 strategies for each priority.
1 – Customer service.
- Implement a systemized customer service policy.
- Plan a sharing model of the new policy.
- Improve the online customer service (chat, emails, etc.).
- Contact the buyers in order to receive their feedback.
- Include all the gathered info on the real estate CRM for a better structuring.
2 – Increase the real estate productivity.
- Stick to the real estate team meeting on each Monday.
- Do daily follow ups of the activity of each real estate agent.
- Set the tasks by competences and assign them through the real estate CRM.
- Develop individual and collective training plans.
- Sell 15 properties per month.
*Note: the number of properties for sale showed by these examples depend on different variables such as the number of members inside the organization and the activity of the real estate sector in a certain area of work.
3 – Hire new members for the real estate team.
- Plan and coordinate this with the department of human resources of the real estate.
- Create a job offer detailed by competences (abilities, languages, profiles, etc.).
- Publish and share the job offer on portals, social media, real estate web, real estate blog, etc.
- Interview 4 possible candidates for the job offer per month and store the info gathered.
- Hire 1 new member per month.
*Note: this model is based on the scenario in which the real estate counts with a department of human resources.
In fact, to count with such a department is quite unusual for the real estate sector in Spain, especially for a small or medium real estate agency.
On the other hand, the example in which we need to join a new member to the real estate team is just illustrative, as the time frames can be set by different periods or terms, depending on the resources and possibilities of the real estate.
The previous annual business plan for a real estate can be adapted to the rental management or property recruitment also. This model is illustrative and changeable depending on the specific necessities of each agency.
This model might become of great use for a real estate that opens now, or for any agency that wants to increase its organizational structure or increase its commercial benefits.