You don’t have a business plan1. A business plan is compared to a GPS for travelers entering unfamiliar territory, as it helps keep you focused on what matters to your business.
Why a Business Plan is Essential: A business plan is crucial because it lays out the steps you need to take to achieve success. It includes the strategy and actions necessary to meet your goals. For real estate agents, at a minimum, it should involve calculating the number of deals needed to close to meet monetary commission income goals. This involves dividing your commission goal by the commission generated per transaction to determine the number of transactions required. For example, to make $100,000 with a $7200 take-home per sale, you would need to close about 13-14 properties.
Components of a Good Business Plan: Good business plans typically include sections on prospecting, sales and marketing, and expenses. Other helpful components can be a SWOT analysis (Strengths, Weaknesses, Opportunities, Threats), professional partnerships, support, and outsourced services. The sources emphasize that in-house coaching, business planning guidance, and support are invaluable for both new and experienced real estate professionals.