As a real estate agent, you are the head of a small business. The appeal of “being your own boss” is likely one of the reasons that you got into real estate in the first place, but it is also one of the things that could be holding you back if you aren’t focused on being the boss of yourself.
Any successful small business regularly takes time to analyze where they stand, what resources they have at their disposal, and what the return on that investment has been. They then use that information to make decisions about future investments with the goal of raising long-term profitability.
If you aren’t having these types of meetings with yourself about the state of your business, you are doing yourself a serious disservice. But don’t worry because this isn’t as complicated as it sounds. Your entire planning session can be broken down into five basic questions that you should be asking yourself.
Who Are My Best Clients?
You’ve probably heard of the 80/20 rule. In this case, you can use it to suggest that 80% of your business comes from 20% of your clients. Who are those clients and what type of work are you doing for them?
If your most profitable clients from the past year were all from investors looking for rental properties or businesses looking for commercial properties, being aware of that fact can help you locate more clients that have similar needs.
Where Did I Get My Best Clients?
Speaking of your best clients, how did they become your clients? They might have found you through a referral group, your personal website, or they may have been referrals from previous clients.
Identifying the sources that are providing you with your best clients will allow you to plan on spending more time developing those sources and less time focused on lead generation methods that aren’t working as well.
Where Did I Spend Money Most Effectively?
Using whatever accounting software you prefer, print out a report on where you spent your marketing budget over the past 12 months. Which ones are giving you the best return on investment and which ones are not performing up to your expectations.
By analyzing what marketing expenses are delivering the best results, you can make some educated decisions about how to allocate your marketing budget in the months to come.
Where Did I Spend My Time Most Effectively?
While your marketing budget is a very important resource to monitor, your time is an even more valuable commodity…although many of us forget that fact in the middle of a busy week.
During your planning session, take some time to evaluate where you are spending time in your business and what types of returns that investment is delivering. You might find that adjusting the amount of time you spend on open houses, showing properties, or working in the office justifies an adjustment in one area or another.
How Can I Best Schedule My Business?
Once you have some answers to the first four questions, the next thing that you need to ask yourself is how you can adjust your calendar moving forward to accommodate those changes.
Identifying who your best clients are and how you are acquiring those clients will cause you to rethink where you are investing both your money and your time. After deciding how you want those adjustments to shake out, write down what that looks like on your calendar and pick a date a few months out to repeat this process and review the results of your changes.
Being the boss isn’t as easy as it sounds, but it does mean that you get to control all aspects of your business. Take that responsibility seriously and schedule a personal planning session every few months.
You won’t believe how powerful the results can be.