2024 Business by Design Workbook

Business by Design 2024 BUSINESS PLANNING WORKBOOK

Business Planning Workbook

Contents Unit 1 Business Analysis Unit 2 Economic Plan Unit 3 Marketing Plan Unit 4 Time Management

Business Planning Workbook

1

Business Analysis

LEARNING OBJECTIVES finished this unit, you will be able to: When you have finished

• Write a mission statement and SMART goals for your business.

• Formulate a budget for expenses.

• Analyze a successful P&L and money management plan.

• Develop a lead generation strategy.

Unit 1 | Business Analysis

Business Planning Workbook

BUSINESS PLANNING AND GOALS A. The importance of business planning 1. Business planning is important if you are trying to reach a specific goal. For example, you may want to a) quit your other job, b) gain financial freedom, or c) purchase your dream car.

2. Here are some statistics for new businesses: a) Of all new businesses started in a given year, only 50% remain in business after five years. b) Only about 33% remain in business after 10 years.

3. Which ones survive? a) There are many reasons why this happens. The number one reason happens to be controllable—planning.

(1) Planning (a) The number one rule for business success: a business owner who fails to plan, plans to fail.

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B. Your business plan 1. Describe your business. a) What are your products/services? b) Why are you in this business? c) What is your business’s purpose? d) What do you see your business looking like in one year, three years, and five years?

2. Write your mission statement. a) A mission statement is the thesis statement of a business plan; it should express the philosophy of the owners regarding their business, their customers, and their personnel. b) Your mission statement is also your opportunity to explain your unique selling position— what makes you different from your competitors? c) Some of the most effective mission statements have two common features; they are brief and are written with the intention of being shared with the company’s employees and with the public.

(1) Example of a mission statement #1 (a) To assist homeowners selling their homes and homebuyers buying their homes with professional, personalized assistance, keeping our customers’ best interests a top priority and respecting the interests and goals of each party.

(2) Example of a mission statement #2 (a) We make the dream of home ownership a reality, with caring service for both sellers and buyers.

(3) Example of a mission statement #3 (a) To provide caring, personalized service to both sellers and buyers, helping others reach their goals to ensure we reach ours.

(4) Example of a mission statement #4 (a) To treat clients as part of our family, ensuring all their dreams and goals of home ownership are met. Helping others will help us become the best.

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3. List your overall goals or objectives. As you set goals, make sure that they are specific measurable, attainable, relevant, and timely (SMART). Your goals should support your mission statement. a) What are SMART goals?

(1) Specific: Well written goals are very specific. (a) Poor example: “I will have all the money I need to live comfortably.” (b) Good example: “I will make $7,500 per month beginning in July.”

(2) Measurable: A goal without a measurable outcome is like having a sports competition without keeping score. Your goal should be measurable so you have an idea of what is working and what is not. (a) Poor example: “I am going to sell a lot of houses this month.” (b) Good example: “I am going to sell 10% more homes this month than I sold last month.”

(3) Attainable: Goals should be realistic and reachable. If you don’t reach your goals, you quit.

Dream big, but set goals you can meet. It is okay to set new goals as you accomplish the old ones. (a) Poor example: “I will be the top seller in the entire state.” (b) Good example: “I will increase my sales each month until I am the top seller in my office (4) Relevant: Your goals should reflect the current market conditions. Focus on what the conditions actually are and not what you wish them to be. (a) Poor example: “I will increase my listings even in this down market.” (b) Good example: “I will focus on cutting spending in this down market, so I can still make a profit.”

(5) Timely: Goals without deadlines don’t get accomplished. Choose a time frame to accomplish your goals. (a) Poor example: “I will work with more buyers this year.” (b) Good example: “I will get at least five

new buyers each month for the next six months.”

b) When setting goals, use the SMART Goals Worksheet.

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SMART Goals Worksheet Specific

Measurable

Attainable

Relevant

Timely

Provide Details

How will you measure and hold yourself accountable?

Should challenge, but not be impossible or unrealistic

Should be relevant to your overall objectives

Helps you be accountable and provides motivation

Who?

How much?

Achievable?

Important to ultimate goal?

When?

What?

How often?

Reasonable?

Why?

How many?

Where?

Overall objective/goal:

Goal 1:

Goal 2:

Goal 3:

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c) Write strategies to reach your goals.

(1) How are you going to accomplish a task, objective, or goal? (a) Develop an action plan that states what needs to be done, when it needs to be done, and who will do it. (b) The reason an action plan is so critical is that goals set without action plans are nothing more than dreams.

4. Describe the current market. a) Who are your customers? b) Where is there potential for growth?

5. Identify your competitors. a) What are their strengths and weaknesses? b) What advantages or disadvantages do you have compared to your competition?

6. Develop marketing activities. a) What activities will you use to get new clients? b) What are your priorities? c) What will your marketing activities cost?

7. Create a budget. a) What are your ongoing monthly expenses, including taxes and insurance? b) Will this change in the next three months, six months, or a year? c) What is your revenue? d) Will this change in the next three months, six months, or a year?

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e) A basic profit and loss statement will help with budgeting.

(1) Profit and loss statement (a) All businesses track money in versus money out. This can be done as simply as keeping a hand-written ledger or by using software available from various companies, which is designed to track these items. f) A P&L is essential so you know where you are starting from and to keep you on track. How much money will you need to survive each week, each month, each year? You must accurately track your expenses: errors and omissions insurance, monthly board dues, fees charged by my company (software access, transaction fees), taxes, marketing costs, et cetera.

Here is an example P&L statement.

ABC Real Estate Sales Profit and Loss Statement Agent: Agent 1 Income Commissions

Month: July 2015 Expenses

$7,800

Total income

$7,800

Total income

$7,800

Total expenses

$2,965

Net profit or loss

$4,835

E&O insurance

$50

Monthly board dues

$50

Software access fee

$15

Transaction fee(s)

$500

Marketing costs

$750

Taxes

$1,600

Total expenses

$2,965

8. Develop and maintain a sufficient number of qualified leads. a) One of our objectives in the real estate business is to generate leads for new business.

(1) Identify the best methods of contacting groups of people. Build your plan around annual, monthly, weekly, and daily lead-generation activities. Demand of yourself a weekly minimum number of contacts that you will make no matter what.

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(2) Contact a maximum number of leads; follow your plan.

(3) Prioritize your leads; your first priority must be to work the most ready, willing, and able customers.

(4) Maintain a simple follow-up system for tracking your leads; this will allow you to develop both immediate and future business. b) Lead generation means constantly looking for people who need to move. Some of the many reasons people move include changes to employment, marriage, divorce, school changes, health changes, and so on. c) Sources for leads could include public notices in newspapers, moving or estate sales, for-saleby owner signs or ads, and openings or closings of local businesses.

C. Summary 1. Business planning isn’t something you should do only once. a) You must be continuously trying to make the best decisions with the best information to maximize your productivity.

D. Business planning activity 1. Complete the business plan template for your business.

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Business Plan Template BUSINESS DESCRIPTION What are your products/services?

Why are you in this business?

What is your business’s purpose?

What do you see your business looking like in one year, three years, and five years?

MISSION STATEMENT Express your philosophy regarding your business and your customers. Keep it brief and directed to employees and to the public.

GOALS AND OBJECTIVES (from SMART Goals Worksheet) Make sure goals are specific, measurable, attainable, relevant, and timely (SMART).

Overall Goal

Goal 1

Goal 2

Goal 3

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Business Plan Template (Continued) ACTION PLAN TO MEET GOALS

What needs to be done

When it needs to be done

Who will do it

CURRENT MARKET CONDITIONS

Who are your customers?

Where is there potential for growth?

COMPETITION

Who are your competitors?

What are their strengths and weaknesses?

What advantages or disadvantages do you have compared to your competition?

MARKETING ACTIVITIES

What activities will you use to get new clients?

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Business Plan Template (Continued) What are your priorities?

What will your marketing activities cost?

BUDGET What are your expenses, including taxes and insurance?

Estimate your ongoing monthly expenses. Will this change in the next three months, six months, or a year?

What is your revenue? Will this change in the next three months, six months, or a year?

Include a P&L Statement

LEAD GENERATION

What groups am I targeting?

How will I contact them?

What are my yearly, monthly, weekly, and daily lead generation strategies?

Business Planning Workbook

2

Economic Plan

LEARNING OBJECTIVES finished this unit, you will be able to: When you have finished

• Track conversion numbers for contacts, appointments, agreements, and closings; • Demonstrate how to use market data to support your business.

• Develop a comprehensive outline for your financial information.

Unit 2 | Economic Plan

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INDIVIDUALIZED ECONOMIC PLAN A. Individualized economic plan critical to the success of your business plan 1. The amount and frequency of your business plan activities will be determined by your economic plan.

B. Activity required for your desired amount of money 1. How to calculate the amount of activity needed to achieve the results desired in your business plan a) There are four basic components or activities in the economic plan: (1) Contacts (2) Appointments (3) Agreements (4) Closings b) The more people you meet and stay in contact with, the more appointments you will be able to make. This leads to more agreements and, ultimately, closings. c) Put simply, the more people you meet, the more business you will do. d) To estimate how many contracts you need to achieve your income goal, start with how much income you will generate from each closing.

(1) For every standard closing, there are two transactions, a listing transaction and a selling transaction.

Basic Two-Transaction Model Sale Price ($) Listing Commission (%) Gross Listing Commission ($)

Listing Transactions

Selling Transaction Co-Broker Commission

Listing Side Commission

Agent Split

Broker Split

Selling Side Commission

Agent Split

Broker Split

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Later in this unit, you will calculate your income based on your local market. For this example, we are using estimates.

Example: $1,500,000 Sale Price 6% Listing Commission $90,000 Gross Listing Commission

3% Listing Transactions

3% Selling Transaction Co-Broker Commission

$45,000

$22,500

$45,000

$22,500

$22.500

$22,500

These agent splits are estimated at 50%.

TRANSLATING CONTACTS INTO CLOSINGS A. Conversion data 1. We will start with the number of closings you need to achieve your income goal. Then, we work backwards to find the number of needed agreements, appointments, and contacts.

2. Track the number of two-way contacts or calls you make in any given period of time (hours, days, or weeks). a) How many actual conversations did you have and how many appointments were made? b) From the appointments, how many agreements were obtained? c) From the agreements, how many closed transactions resulted?

3. For newer agents, data has shown that about 160 calls (or 2-way contacts) are needed to make 1 sale. a) 160 calls (or 2-way contacts) → 6 appointments → 2 agreements → 1 sale b) 160 calls (or 2-way contacts) requires about 32 hours of lead-generation activity

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4. You can use an Economic Plan template to determine your own conversion numbers.

Economic Plan Template Time Period: Step 1

Step 2

Step 3

Step 4

Number of Calls Made

Number of Appointments

Number of Agreements

Number of Calls Made

Number of Appointments

Number of Agreements

Number of Closings

Number of Closings

Ratio

Ratio

Ratio

Overall conversion ratio:

5. Activity: Fill out an Economic Plan template based on the following information: Melanie is making calls to generate leads. Using the overall conversion ratio of 0.6% for number of calls to number of closings, how many calls does Melanie need to make in order to close three transactions in three months?

Time Period: Three months Business Source: Internet leads Step 1

Step 2

Step 3

Step 4

Number of Calls Made

Number of Appointments

Number of Agreements

Number of Calls Made

Number of Appointments

Number of Agreements

Number of Closings

Number of Closings

Ratio

Ratio

Ratio

Overall conversion ratio:

0.6%

Solution: Step 1: Fill in the number of desired closings, 3.

Step 2: Then, work backward to find the number of called made: .06% = 1/160, so Melanie would need to make 160 calls to get 1 sale. If she wants three sales, she would need to make 480 calls (160 × 3 = 480).

Assume Melanie has an Agreements to Closings ratio of 50% and an Appointments to Agreements ratio of 33%. Complete the rest of the chart.

Solution: First, fill in the ratios. Then, complete the chart.

Agreements to Closings: 50% = 3/6 Appointments to Agreements: 33% = 6/18 18/480=3.75%

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B. The economics of your business 1. Your business’ success depends on how well you convert any of the ratios. a) For example, the better you are at converting appointments into agreements, the more money you will make.

2. The previous example was based on typical statistics for newer agents for all lead-generation activities.

3. NAR statistics represent the ratio of total number of closed transactions to total number of leads acquired, broken down by specific type of lead-generation activity.1

Internet Leads:

4% conversion from lead to appointment

Social Media:

5%

Sign Calls:

6%

Open Houses:

10% (of everyone who walks in except those accompanied by a REALTOR®)

For Sale By Owners:

25%

Expireds:

35%

Database:

65% inclusive of referrals received by the Database

4. Knowing how many calls or contacts you must make to get the number of appointments you need to get a certain number of closed transactions is imperative for your business plan and your management of time. a) You can use the Call and Contact Sheet found in the Appendix to track your conversations.

5. This is also very good information to use to find out where you need to practice. a) The only way you know this is to keep track of the numbers and then commit to the number of hours needed to lead generate to get those appointments. b) Those who know how to handle objections have much higher conversion numbers.

1 - October 2014 Newsletter for REALTORS

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6. Newer agents usually need to make many more calls or contacts to get an appointment than veteran agents. The more practiced you become, the higher your conversion ratios will be. a) This is from any variation of the business sources (internet leads, social media, signs, open houses, FSBO, expireds, database). b) Veteran agents shared they mainly work their database, including past clients for referrals, and attend networking events to add to their database. c) It takes much longer and much more persistence to work the internet leads.

(1) Follow-up is the key here.

7. When writing a first, second, or even third-year business plan estimate, the majority of your business will come from the area you will spend money in and spend time on. a) Track diligently the number of hours you will work in that area and the calls (conversations), appointments, agreements, and closed transactions that result. b) Once you have an appointment, the conversions are all the same (there is no distinction between business sources). c) This will allow you to estimate the amount of time you need to spend actually in the activity (calls, networking, open houses, etc.) as well as time in the appointments and in the transactions. d) It also allows you to track where you need help.

(1) How much time do you need to spend practicing scripts and overcoming objections? (a) Most people (newer agents especially) spend a minimum of 2-3 hours practicing scripts every week to hone in on their skills.

C. Analyzing market data 1. To determine how much money your conversion numbers will generate, you need to understand your local market.

2. You can then determine how much money each closed transaction will make.

3. This will help you determine how many calls or 2-way contacts you need to make to generate your desired income.

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FINANCIALS

Questions to consider as part of your financial plan for success: 1. Do you commingle your personal and business financials?

2. Do you have separate banking accounts?

(Personal Checking/Savings, Business Checking/Savings) 3. Do you have a personal budget?

4. Do you have business budget?

5. Do you have a tax savings plan?

6. Do you have a personal investment/savings plan?

7. Do you have a CPA, Bookkeeper and Financial Planner?

8. Do you have an exit strategy?

The Basic Formula Monthly A

Revenue/Income/GCI

B

Taxes

C

Personal Expenses

D

Business Expenses

E

Fund Your Dreams (A-B-C-D=E)

Yearly

The Accounts Business Checking

3 Months Operating Expenses

Business Reserves (Savings)

6 Months Operating Expenses

Business Taxes

Corp Tax Liability Rate Varies Per State – Find Out

Personal Checking

3 Months Personal Expenses

Personal Reserves (Savings)

6 Months Personal Expenses

Personal Taxes

Personal Tax Liability Rates Vary – Find out what is your tax bracket is.

Personal Investments

Set an investment goal: “I want to invest __% of my income each year into X”

“If you buy things you do not need, soon you will have to sell things you need.”

- Warren Buffet

Business Planning Workbook

FINANCIALS

Your 2023 Financials YTD GCI Post Split Income Business Expenses Corporate Taxes Net Income Personal Expenses Pesonal Taxes Cash After Tax / Expenses Multiplier

Tips 1. C orporate Taxes only apply if you have formed and are operating a corporation.

Ask your CPA for estimated tax rates for your state.

2. For personal taxes, ask your CPA for your estimated tax rates specific to your state.

3. Multiplier will help you understand how much gross income will need to be generated to pay for the items you wish to purchase. Formula = 100 / ((Cash After Expenses)/GCI)

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HOMEWORK Complete the Local Market Worksheet and Data Gathering Worksheet and bring them to class tomorrow.

You may have more than one market area.

Find the 10 most recently sold properties in your area and enter the basic information.

Calculate the average sales price.

Use the average sales price to determine how many transactions you will need to achieve your desired income.

You will need this number of transactions when you input your plan into the KnowledgeDNA tracking system.

Use the Data Gathering Worksheet to collect the information you will need to complete your own economic plan.

Enter your data in KnowledgeDNA. (The KnowledgeDNA Business Plan is the Economic Plan discussed in this unit.)

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Local Market Worksheet Market Area: Property Address

Actual Sale Price

Closed Date

Property Type (Single family, townhome, apartment building, etc.)

AVERAGE SALE PRICE

Multiply by typical gross commission (%)

Multiply by commission split (%)

Average net commission per transaction

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Data Gathering Worksheet

Income Goal for One Year

$

Average Sales Commission

$

divide to find Total Required Sales

Total Actual Work Weeks

divide to find Average Number of Weekly Sales Required

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3

Marketing Plan

LEARNING OBJECTIVES finished this unit, you will be able to: When you have finished

• Define a unique seller proposition.

• Develop a plan to create a strong marketing presence.

• Identify a strategy to bid and win at search engine marketing.

Unit 3 | Marketing Plan

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KEYS TO AN EFFECTIVE MARKETING PLAN A marketing plan should be a living document. Creating one involves research, thought, and time. Successful marketers review their plan on a regular basis. They will compare the status of their marketing campaign to their goals and objectives. Having a solid, well thought out plan in writing will aide in ongoing improvements to your marketing initiatives and will help with planning as things change.

The following are key components of an effective marketing plan. Be sure to develop all of these when writing your plan. You may add elements to each key component to make it suit you and your style. Refer back to your business plan from the first segment of this course. You described your business, its purpose, your customers, your competitors, and you wrote your mission statement. The information you included there will inform your marketing plan.

A. Mission statement and goals 1. The mission statement you developed as part of your business plan can be included in your marketing plan. It should describe a) who you are selling to (your key market), b) what you are selling (your contribution to your clients), c) how you want the public to envision you through your marketing (perception/image), and d) your unique selling proposition (distinction).

2. Keep in mind your goals a) As part of your business plan, you established SMART goals. For example, (1) to gain a certain number of new clients by a certain date (per week, per month, per quarter, or per year); (2) to increase your number of referrals from past clients; (3) to increase your income by a certain percentage; and (4) to increase customer’s satisfaction, online reviews, etc. b) As you develop your marketing plan, keep your goals in mind and make decisions based on those goals.

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B. Market research 1. Once you have identified your key market, collect, organize, and document data about the area which you plan to market.

2. Research and document patterns in sales, pricing, and activity. a) Separate by seasonality (quarterly patterns).

3. Research demographics, market segments (smaller sets of specific types of consumers), needs, and buying/selling decisions.

4. Quarterly Regional Market reports can be found on elliman.com under Resources > Market Reports.

C. Understanding the competition 1. Part of your business plan is identifying the competition.

2. Document who people in your market are currently using for their real estate needs. a) How is your competition branding or marketing themselves? How do you perceive them based on these factors:

Logos

Images

Slogans

Offerings/specials

Benefits

b) What is your competition using to get in front of the consumer?

Online marketing

Direct marketing

Seminars

Blogs

Social media

Name recognition tactics such as billboards, magazine ads, and other media outlets

3. How do you compare to other agents who are marketing in your area? a) Make two lists: similarities and differences.

(1) Years in business, number of sales, market share, etc.

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D. Unique selling proposition 1. How do you relate to the market? a) Do you live or work in the area? b) Are you involved in the community (schools, volunteering, local government, etc.)

2. What does your market need? a) What can you offer to create a need for your product?

3. Based on what you documented about your competition, determine how you will stand out from them on each key point. a) What will you offer that is different? b) If you will offer something the same, how will you change the public’s perception or understanding to be different from the competition?

E. Brand awareness DI. Your brand is working for you 24/7. As an agent, you are synonymous with your brand.

1. It’s clear that as important as consistently branded marketing materials are, even more critical is incorporating your brand or theme throughout your entire business process.

2. A brand is the sum total of a consumer’s experience with your business.

3. It’s the central principal that the consumer uses to remember you.

4. Think of some examples of easily identifiable brands. a) Nike b) Apple c) McDonald’s d) Disney Example: One of the most notable and memorable examples of brand integration occurs at The Walt Disney Company, with its core value of creative, imaginative family entertainment. On Disney cruises, each evening, guests receive a customized newsletter detailing the next day’s events that might interest their family. They encounter the mouse ears logo everywhere—even the pool is logo-shaped! When you get home, you receive thank-you notes from Mickey Mouse.

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5. Find your theme.

When selecting a theme, the best place to start is with you, the person behind the image! Ask yourself, “Who am I?” and then, “What possible niches does that open up?” Answers to the first question might be soccer parent, avid golfer, or opera fan. To answer the second question, determine whether the number of people within a particular segment represents a viable niche in the market. a) Your brand theme also can derive from any number of sources, such as a value (honesty), a property type (resort condos), or a market segment (first-time buyers). b) To see how a brand can be incorporated into the selling process, consider the following ways; (1) Slogan

Memorable phrase

Benefit to consumer

Easy to say

Plaster it everywhere

(2) Logo

Graphic image

Neutral and appealing

Easily understood

Supports your brand image

Professional design

Conjure emotions

(3) Printed materials

Reflect your theme

Include slogan and logo

Copy should underscore theme

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(4) Website

Website URL could reflect brand theme

Short and easy to remember

(5) Work environment

Make strong impression

Match theme or niche

(6) Closing gifts

Reinforce brand to clients

Tailor to specific customers

(7) Follow-up

Ongoing communication

Monthly or Quarterly newsletter

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BRANDING QUIZ 1. Which of the following BEST describes a brand? a. The sum total of a consumer’s experience with a business b. The logo of a business c. The slogan of a business d. The printed materials and website of a business 2. The theme for a brand can derive from which of the following? a. Value b. Property type c. Market segment d. All of these 3. Why should follow-up be part of your branding strategy? a. Because it is the only place customers see your logo. b. Because it is the first place customers see your logo. c. Periodic communication reminds your customers of your brand. d. Follow-up should never be part of a branding strategy.

4. A strong logo is which of the following? a. Easily understood b. Appealing to a very small group of people c. Hand drawn and unprofessional looking d. Not part of branding 5. A memorable phrase that conveys a benefit to the customer is a a. logo. b. slogan. c. value proposition. d. segment.

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G. Marketing strategies 1. Write down the marketing and promotional tools that you will use. a) Networking—go where your market is b) Direct marketing—letters, brochures, flyers, postcards c) Advertising—print media, websites, social media, other media d) Conduct seminars or gatherings—increases awareness e) Writing blogs or articles to become known as an expert f) Publicity—Talk with our PR team for potential opportunities g) Online presence—Zillow, Realtor.com, Trulia, etc.

H. Budgeting and implementation 1. You included budgeting information in your business plan for marketing activities. Review what you determined you have to spend. a) How much will you spend per day, per week, per month, per year?

2. Make a list of your marketing strategies. a) Categorize from most important/immediate need to less important/future need. b) What can you develop yourself through StudioPro and Xpressdocs? c) What will you need to outsource? d) Be prepared to budget for success and failure. There is some trial and error that goes along with implementing the plan.

3. Based on the cost and scope of work, a) what strategies can you implement now, and b) what strategies will you implement later? When?

4. Determine how much you are willing and are able to spend to gain one new client.

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Monitoring results 1. Analyze your results to identify what strategies are working, and what you need to change. a) Survey clients. b) Track calls: contact and where they come from. c) Track visitors to your website. d) Track social media engagement. e) Track increases in new clients, referrals, and how they got to you. f) Track increases or decreases in income. g) Track and evaluate key all relevant performance indicators (KPI's) such as: ad costs, costs per lead, cost per click, cost per action, customer acquisition cost, social/web/ email growth, etc.

J. Summary 1. By researching your market and your competition, and by developing unique positioning, you’ll be in a better position to promote yourself and your services.

2. By establishing a budget and goals for your marketing plan, you will have tools in place to understand whether your efforts are generating results.

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MARKETING: HOW TO BRING PEOPLE TO YOU A. Today’s consumers 1. Today’s consumers are different than in the past.

2. Buyers and sellers are educating themselves through the internet.

3. As a result they a) have become more knowledgeable about the market, b) expect immediate information and response times, c) expect to see an online presence and marketing, d) do research and read reviews on nearly everyone they hire or on anything they purchase, and e) like to see uniformity and consistency.

4. Consumers still want to see a personalized professional approach to their real estate needs and from their real estate agent. a) Want to feel a connection to the community b) Are interested in the image of their agent/brokerage c) Want to have direct, regular, and easy communication with their agent/brokerage 5. In order to succeed, you need to recognize these immediate, important concerns of today’s buyers and sellers and do the following: a) Provide immediate personalized follow up. b) Understand where consumers are looking for information. c) Recognize and target consumers exactly where they are looking. d) Focus your marketing to effectively use your money and time. e) Implement effective lead-capturing techniques to generate more appointments and contacts. f) Develop and practice systems that will increase your ability to close deals.

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BUILDING A STRONG ONLINE PRESENCE Having an overall strong web presence via social media and website traffic can lead to loyal customers, personal brand recognition, and new and repeat business. Gaining that recognition isn’t easy or automatic and it requires consistency, creativity, and a fair amount of effort. There are some effective strategies you can use to get noticed and to drive people organically to your website.

A. Effective social media and blog marketing Whether you’re posting or tweeting, blogging or filming, there are key principles that trigger action from consumers. As a successful marketer, your job is to drive behavior in others—whether by a click, a like, or a share.

1. Target your posts. a) You have the ability in many social media platforms to target posts to defined audiences. b) A smartly targeted post is more likely to engage those users that do see it.

2. Use photos and visuals. a) When you use visual content and appeal to emotion, you get results and create an action. b) People make a connection with emotional content and that prompts them to click, like, share or buy. c) We’re hardwired to be attracted to people’s faces and images that stir good emotion. d) Photos, when used correctly, can attract audience engagement and reach. e) They align with the visual importance of the social network

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3. Create authentic content that drives an emotional connection with your audience.

4. Focus on a common experience people will have. a) Childhood memories, creating a life for oneself, falling in love, growing older, etc. b) Tailor your social media marketing and blogs to trigger those memories and emotions. c) With consistency, people will begin to tie those emotions directly to your brand. The result is an influence on behavior.

5. Make it new. a) Use the word new to engage the brain and draw attention to you and your services b) Make a point to showcase all of the new things going on.

New listings

New products—signs, flyers, lockboxes, anything really

New services

New industry information

Business Planning Workbook

New housing developments

New things going on with your company.

New things in the community—restaurants, shopping, movies, plays, festivals

Your new haircut (you get the idea)

6. Include trending topics. a) Explore the Trending Topics / Discovery sections of your social media platforms b) Think about how you can use them in your content and make them relevant to real estate. c) Be creative in combining the trend with real estate will get you noticed and perhaps shared or retweeted.

7. Summary a) Focusing only on facts and figures talks to the wrong side of the social media brain. If you want to inspire action, you have to reach the emotional side of the brain. b) Incorporate common ground and common experiences so your audience feels comfortable.

Combine shared memories with real estate and provide some new. c) Feature faces and visuals in your graphics and videos to aide in the audience being there or feeling it.

B. Bidding and winning using Realtor.com, Trulia, Zillow, and other websites 1. For many websites, the majority of landing pages are simply listing pages for a particular property. a) This provides a great many entry points into the site. b) Data is and can be shared with a long list of websites on that feed. c) This includes sites such as Trulia, Zillow and Realtor.com. d) The competition to stand out and get noticed is high. e) Sellers want to get as many people viewing their property as possible. f) This puts agents and brokers under pressure to obtain good search rankings and be noticed first when customers begin searching online.

Business Planning Workbook

2. There are several key ways to drive traffic to you. a) Claim your listings and create profiles on Zillow, Trulia, Realtor.com, etc.

(1) In order to make sure your name and contact information appear next to your listings on sites like Zillow, Trulia, etc., you need to create profiles/accounts with each site and claim your listing.

(2) It is free to create a profile; the more complete, the better.

(3) Here is an example of how it works on Zillow: Steps to claim your listings on Zillow:

Create a profile on Zillow.

Log in to your account and search for your listing(s).

On your listing page, visit “More” and click “Claim Your Listing”.

Confirm that your photo and contact information show up next to your listing.

NOTE: The process is similar to claim your listings on third party portals like Trulia and Realtor.com. b) Promote on real estate aggregator sites.

(1) Sites like Trulia, Zillow, and Realtor.com receive millions of visitors a day.

(2) Most of these sites will require a “Pro Account” or will charge a fee for promoted listings.

(3) If you have a website, Google Analytics is a good tool to measure the quality of traffic from these sites. http://www.google.com/analytics/standard/ (This is a free version.)

(4) You can determine if the money you’re spending for promotion is working, if a site is consistently referring visitors to your information, and if you’re converting the visits into leads.

(5) If you are, then work the source that is delivering leads a little harder.

(6) Keep in mind that you are not the only broker receiving promotion on these sites so patience and consistency are vital.

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c) Create a video tour of a property listing or make a “meet me” YouTube video of yourself.

(1) Because videos are indexed, they help you gain search engine traction.

(2) Optimize the video title and description by including the address, listing ID number, your name, company name, or other keyword-rich copy.

(3) When creating a video tour, include a link to the property detail view page on your site rather than just a link to your home page. You don’t want to force them to search again once they click a link.

(4) Property video tours can either be done by yourself or professionally produced.

(5) Put yourself in front of the camera to bring the viewer with you on the tour. This can build trust and demonstrate that you know the property inside and out.

(6) It’s also a good marketing strategy to capture sellers looking to find a listing agent.

(7) Remember to use emotion and action. e) Share your listings on social media. ci) (1) Develop a business page on Facebook/IG, LinkedIn, Tik Tok and X (formerly) Twitter.

(2) Share your (or your brokers’, if allowed) listings through links on your page.

(3) Remember, simply posting listings with no context, emotion, or connection attached can quickly diminish likes and followers.

(4) If there is a listing with an appealing feature, make sure to comment and explain why you think your friend and followers should click your link.

(5) Ask your network to share your post to their network. Give them a good reason to.

Business Planning Workbook

HOMEWORK

Write a short essay describing how you will use social media to attract customers. Include specific details on what forms of social media you will use, what tasks you will complete, how you will complete them, and how you will measure your results. Be prepared to share your essay in small groups or with the class on Day 2.

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III.

GET HYPERLOCAL, FIND YOUR NICHE, AND CREATE YOUR STYLE A. Hyperlocal 1. What is it? a) Being oriented around and marketing to a well-defined, specific area b) Marketing close to home or your place of business c) Marketing to people who are united, somehow with that community or for a purpose of the community d) Having your primary focus directed towards the needs and the concerns of that specific community 2. Why is it important? a) According to Time Magazine1, hyperlocal marketing is the best and most effective option for local business owners and small companies. b) Agents can reap huge benefits from hyperlocal marketing because they do not have to run expensive ad campaigns to get the public’s attention. c) For example, sites like Realtor.com, Zillow, and Trulia are national companies that offer ad campaigns and lead generators based on particular zip codes.

B. Niche marketing 1. Niche marketing is concentrating marketing efforts on a specific and well-defined segment of the population. a) Niches are created by identifying needs, wants, and requirements.

(1) They could be requirements that are being addressed poorly or ones that are developing or up and coming. b) Niche marketing is aimed at being a big fish in a small pond rather than being a small fish in a big pond. c) It is also called micromarketing.

Business Planning Workbook

Marketing Plan Worksheet MARKETING PLAN Mission Statement and Goals (refer to business plan) Mission statement

Goals

Market Research Describe the target market area(s) where you will do business

What are the sales patterns?

What is the average pricing?

What is the average number of units sold?

Business Planning Workbook

Marketing Plan Worksheet (Continued) Are there any seasonal trends?

Competition What are other agents/brokerages currently marketing in the area?

What marketing strategies are the competition using?

How do you compare to the competition?

Similarities (years in business, number of sales, market share, specialty, etc.)

Differences (years in business, number of sales, market share, specialty, etc.)

Business Planning Workbook

Marketing Plan Worksheet (Continued) Your Unique Selling Proposition What special skills, experience, or knowledge do you have that sets you apart from the competition and could be an area of focus for you? (for example, do you have mortgage, financial, appraisal, or legal experience?)

How do you relate to the market? (Do you live or work in the area? Are you involved in the community—schools, volunteering, local government, etc.?)

What can you offer to create a need for your product?

How will you stand out from the competition? What will you offer that is different? If you will offer something the same, how will you change the public’s perception or understanding to be different from the competition?

Business Planning Workbook

Marketing Plan Worksheet (Continued)

Branding What is your theme?

What is your slogan?

What is your logo?

How will you use branding? (printed materials, website, work environment, closing gifts, etc.)

Create marketing strategies What strategies will you use to attract customers? (direct marketing, print ads, website ads, seminars, trade shows, etc.)

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Marketing Plan Worksheet (Continued)

Budgeting and implementation How much money can you allow for marketing per year?

How much money can you allow for marketing per month?

How much money can you allow for marketing right now?

What will it cost you to use the marketing strategies you identified above?

Set a beginning date and an end date for each specific marketing strategy.

Monitor your results Follow-up on each activity by recoding the actual date you started and finished, and how the costs and results compared to your estimates.

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4

Time Management

LEARNING OBJECTIVES finished this unit, you will be able to: When you have finished

• Apply time management techniques to increase your productivity.

Unit 4 | Time Management

Business Planning Workbook

TIME MANAGEMENT AND TIME BLOCKING A. Tips and tricks for productivity “Nobody plans to fail. People just fail to plan.”

1. If you think it, ink it. a) What kind of calendar will you use in your life and career? b) Do you use two different calendar systems?

(1) Google calendar, ICal, Outlook, paper? c) If you don’t write something down, then you are most likely not going to do it. d) Write a list and write down how much time you will commit to each task. e) When a task is complete, move on.

2. How to schedule your career a) Time block for lead generation (1) Set weekly times.

Business sources (refer to your business and economic plan)

Calling database/referrals

Training classes (inspections, title/attorneys, appraisals, structural/builders, financing, etc.)

Property research

Business Planning Workbook

Expireds/FSBOs

Open Houses

Coach/mentor/accountability or script partner

3. Preparation a) You have to know yourself!

(1) When do you work best in the day? (a) Most people are most fresh and recharged in the morning—do the tough stuff when you are most fresh.

(2) When do you think you will most likely be able to contact people in your database?

Ten Ways to Avoid Procrastination

4. The Six Ds a) Discard b) Delegate c) Do d) Date e) Drawer f) Deter

1.

Create a prioritized daily task list.

2.

Break down tasks into bite sized pieces.

3.

Anticipate and plan for interruptions.

4.

Do the unpleasant task first.

5.

Make a difficult task a game.

6.

Use a reward system.

7.

Give yourself deadlines.

8.

Keep a clean workspace.

9.

Use unexpected free moments of time.

10.

Just start—just do it!

Business Planning Workbook

5. The 80/20 Rule 20% of your activities produce 80% of your value 20% of an organization’s associates produce 80% of its results 20% of clients account for 80% of your revenue 20% of your clothes are worn 80% of the time a) You must identify the activities with the highest value and concentrate on improving those.

6. Your goals a) Remember, setting goals and writing them down can help you achieve success. b) Keep your goals in mind when doing daily, weekly, and monthly activities. Does each activity directly support one of your goals? c) Your goals will guide you.

(1) Monitor yourself as you advance toward a desired outcome.

(2) Use your abilities more effectively.

(3) Guide yourself in the right direction.

(4) Decide and clarify what’s most important in your life and manage your time around that.

Business Planning Workbook

Weekly Time Management Worksheet PERSONAL TIME

Hours

REAL ESTATE TIME

Hours

Get ready in morning (shower, hair, makeup, shave, get dressed)

8

Lead generation (emails, calls, face-to-face meetings, follow-ups, listing research for specific calls, open house prep, and actual events, etc.)

17

Eat

6

Appointments (top producers go on a minimum of 2 appointments weekly; plan on 2 hours a piece at first)

4

Laundry (gather, sort, washer-to-dryer, fold, put away)

3

Contract writing and negotiations for transactions

7

Kid stuff (homework, activities, etc.)

3

Research / education of market statistics (number of listings, sold versus list price, days on market, etc.)

7

Prepare food

4

Variable time for things that do not happen every week (inspections, classes, appraisals, closings, etc.)

6

Meal clean-up

3

View and show properties (depends on how many buyers you are working with in a given week)

13

House-cleaning/maintenance (mowing lawn, other household chores)

2

Administrative work (create flyers, input data into listing system, update office files, other paperwork)

4

Exercise/gym

8

Drive-time (not work-related)

3

“Me” time (TV, movies, computer time, date night, etc.)

9

Drive to work

4

Hobbies

4

TOTAL

57

GRAND TOTAL

59 116

Business Planning Workbook

Appendix

Business Planning Workbook

Lead Generation Strategies Reference Sheet I.

DETERMINE METHODS OF CONTACT Email Phone Website Open houses Existing contacts Marketing pieces

II.

CONTACT LEADS Set weekly minimum number to contact

III.

PRIORITIZE LEADS First priority: most ready, willing, and able customers

IV.

FOLLOW-UP Track leads to develop immediate and future business

V.

CONTINUE SEARCHING FOR NEW LEAD SOURCES Public notices in newspapers Moving or estate sales For sale by owner signs or ads Openings or closings of local businesses

Business Planning Workbook

SMART Goals Worksheet Specific

Measurable

Attainable

Relevant

Timely

Provide Details

How will you measure and hold yourself accountable?

Should challenge, but not be impossible or unrealistic

Should be relevant to your overall objectives

Helps you be accountable and provides motivation

Who?

How much?

Achievable?

Important to ultimate goal?

When?

What?

How often?

Reasonable?

Why?

How many?

Where?

Overall objective/goal:

Goal 1:

Goal 2:

Goal 3:

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Profit and Loss Statement Agent:

Month:

Income

Expenses

Commissions

E&O insurance Monthly board dues Software access fee Transaction fee(s) Marketing costs Taxes

Total income

Total income Total expenses

Net profit or loss

Total expenses

Business Planning Workbook

Business Plan Template BUSINESS DESCRIPTION What are your products/services?

Why are you in this business?

What is your business’s purpose?

What do you see your business looking like in one year, three years, and five years?

MISSION STATEMENT Express your philosophy regarding your business and your customers. Keep it brief and directed to employees and to the public.

GOALS AND OBJECTIVES (from SMART Goals Worksheet) Make sure goals are specific, measurable, attainable, relevant, and timely (SMART).

Overall Goal

Goal 1

Goal 2

Goal 3

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Real Estate Boot Camp

Business Plan Template (Continued) ACTION PLAN TO MEET GOALS What needs to be done

When it needs to be done

Who will do it

CURRENT MARKET CONDITIONS Who are your customers?

Where is there potential for growth?

COMPETITION Who are your competitors?

What are their strengths and weaknesses?

What advantages or disadvantages do you have compared to your competition?

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Real Estate Boot Camp

Business Plan Template (Continued) What are your priorities?

What will your marketing activities cost?

BUDGET What are your expenses, including taxes and insurance?

Estimate your ongoing monthly expenses. Will this change in the next three months, six months, or a year?

What is your revenue? Will this change in the next three months, six months, or a year?

Include a P&L Statement

LEAD GENERATION What groups am I targeting?

How will I contact them?

What are my yearly, monthly, weekly, and daily lead generation strategies?

Business Planning Workbook

Personality Style Reference Sheet Personality Style

Do

Don’t

Dominant (productive, competitive, aggressive, headstrong)

Offer compromise Allow them to come up with ideas Make them feel they are in charge

Fight Give in to their demands

Influencing (talkative, enthusiastic, spontaneous, persuasive)

Engage in pleasant conversation Stay focused

Forget the topic at hand Act disinterested in or ignore the small talk Let the influencer do all the talking

Steady (peaceful, loyal, good listener, dependable)

Emphasize need to work together toward common goal Acknowledge their efforts

Offer an immediate solution Flat out reject their ideas

Conscientious (systematic, detailed, organized, orderly)

Stick to the facts Appeal to logic Point out benefits of possible solutions

Make small talk Offer a solution without reasoning

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Real Estate Boot Camp

Marketing Plan Process

Unique Selling Proposition

Branding

Budgeting and Implementing

Business Planning Workbook

Marketing Plan Worksheet MARKETING PLAN Mission Statement and Goals (refer to business plan) Mission statement

Goals

Market Research Describe the target marketing area(s) where you will do business

What are the sales patterns?

What is the average pricing?

What is the average number of units sold?

Business Planning Workbook 133

Real Estate Boot Camp

Marketing Plan Worksheet (Continued) Are there any seasonal trends?

Competition What are other agents/brokerages currently marketing in the area?

What marketing strategies are the competition using?

How do you compare to the competition?

Similarities (years in business, number of sales, market share, specialty, etc.)

Differences (years in business, number of sales, market share, specialty, etc.)

Business Planning Workbook

Appendix

Marketing Plan Worksheet (Continued) Your Unique Selling Proposition What special skills, experience, or knowledge do you have that sets you apart from the competition and could be an area of focus for you? (For example, do you have mortgage, financial, appraisal, or legal experience?)

How do you relate to the market? (Do you live or work in the area? Are you involved in the community—schools, volunteering, local government, etc.?)

What can you offer to create a need for your product?

How will you stand out from the competition? What will you offer that is different? If you will offer something the same, how will you change the public’s perception or understanding to be different from the competition?

134

Business Planning Workbook

Branding What is your theme?

What is your slogan?

What is your logo?

How will you use branding? (printed materials, website, work environment, closing gifts, etc.)

Create marketing strategies What strategies will you use to attract customers? (direct marketing, print ads, website ads, seminars, trade shows, etc.)

Business Planning Workbook

Commit to it.