As we reflect on the challenges of 2023 in the real estate industry, it’s important to acknowledge that this year will be remembered as one of the most demanding in our history. In terms of MLS sales, 2023 mirrors the difficulties faced during the Great Recession of 2008, yet you, as real estate professionals, persevered. Now, it’s time to leave 2023 behind and look ahead to what promises to be an exceptional decade for our business.
The question we must ask ourselves as we transition from a tough period to a promising one is, “How do we set ourselves up for success?” It all begins with planning for the next year, and the time to start planning is now, no matter where you are in the process. Our aim at Inner Circle Broker Coaching is for our clients to have their budgets and strategic plans finalized before the December holiday season begins.
To craft an effective plan, you should start by defining your internal vision for your business, which outlines how your business will serve you, your customers, and the three key purposes of your business:
- To serve your agents in a way that excites them to pay you.
- To provide a satisfying lifestyle for you and your family, encompassing free time, the financial means to enjoy it, and an enjoyable workplace.
- To build equity for you and your family.
Your plan should align with these objectives. One of the best places to begin is by examining historical data from the current year. Five key indicators to consider are:
- The number of recruits attracted in the past 12 months, categorized as new or experienced.
- The attrition rate within your business and where these individuals went.
- The average margin contribution per person.
- Your net profit margin.
- Expense allocation, or where you are investing your expenses to generate revenue and profit margin.
Your planning process should yield two crucial outcomes: a budget estimating monthly revenue, factoring in seasonal fluctuations, and a strategic plan that outlines the steps needed to achieve your budget. Remember, your budget and strategic plan are interlinked, with your budget reflecting the revenue generated from executing the plan and the associated expenses.
Though planning may appear daunting, with the right approach, it can be completed in about 10 to 15 hours – possibly the most crucial investment of time in your brokerage this year. If you feel overwhelmed, consider booking a free consultation with one of our coaches. Visit our website and click on the free consultation link to access valuable tools to aid you in the planning process.
As we leave behind the challenges of 2023, let’s embrace the potential of the next 10 years in the real estate business and pave the way for our own success through meticulous planning and strategic execution.