If you aren’t setting real estate business goals, you could be missing out on a big chunk of business. Having a plan as with anything is a great way to help you keep track of your progress and know where you are losing money – or could be making more income.
The Goals to Set
Setting goals in your real estate business comes in a variety of forms. The first set of goals you should set are the general big ideas. What kinds of things had you been doing in the past year that you want to make sure you don’t do again? What are some of the goals you’d like to make that are new? Some examples include improving your listing presentation, implementing a new system in a particular area of your business or keeping yourself from dealing with time-wasting or cost-deficient activities such as meetings that are too long, paying for seller problems or paying for ineffective advertising.
The second type of goals to set are the obvious ones you should be shooting for, your financial goals. Start BIG. Write out the number of closings you’d like to have, referrals you’d like to make and amount of commission you’d like to earn. You can then break them down further into quarterly, monthly and weekly goals. If you create a spreadsheet for this data, leave a column next to each for the actuals, which you can record at the end of each time period.
Reach Those Goals!
So how do you reach these business goals? For your general big ideas, set timelines for yourself of when you’d like to implement the changes or additions. Be realistic in the timeline to accomplish each and include sub-tasks that will help you accomplish them. If you are looking at implementing a new system, for example, then you should write down the steps it will take to get there (research, implementation, testing), assign it to someone then chart that in whatever type of project management system you use (this can be online, in a spreadsheet, in your calendar, on a whiteboard or cork board or a combination of any of these).
For your financial goals, it will require some analysis and a little observation over a period of time. A good way to get started doing this is to note how many calls, emails, texts, listing presentations and additional meetings you are making on a daily, weekly and monthly basis. Then note in your business planner your actuals next to your goals. In the first month, you should be able to see the path it took through your activity in order to get to your actuals. How did you do? If you met your goals, keep doing what you’re doing.
If you just missed your goals in that first month, don’t despair! This is a great learning opportunity for you. Maybe you need to make more calls. Extrapolate the rate of calls made for the month per closing, for example. Then increase your calls and the subsequent presentations, follow-up meetings, emails and texts to help you better reach your goals the next month.
Over the course of three then six months, you should have an even better idea of what activity works for you to make your business a success. A good measure is to see just how many of your leads you are able to convert. Knowing that rate can be motivating and also give you a good number to shoot for next year.
Some Notes of Encouragement
Don’t fret if you don’t seem to be hitting your goals. Taking note of all of the things that are affecting your business and your activity is a step in the right direction. Write down and revisit your goals often. Have them in front of you when you just don’t want to do those follow-up calls to remind you that without that effort, those goals don’t even matter and that you can do it. You can’t change the past but can improve your future. Just keep looking ahead, and you’ll be in better control of your real estate business!