Just like that, the first quarter of the year is over. If your market is anything like Raleigh, you didn't see much of a lull during the winter months. You continued to face low inventory and buyers continued to compete for the best homes. But, how does the market impact your business goals?
We are working with the agents at Bamboo Realty for their quarterly coaching sessions this week, which got me thinking, do you track your progress? We are all taught to plan for the year ahead, but did your planning end after January? For a lot of agents, that is the case. They spend the holiday season and the month of January pouring over a business plan (Pro Tip: this should be done well in advance of this point. We recommend Q3 business planning for the following year) and they have forgotten the goals by March. Worse, the agents adjust their goals based on their production. No! This is backward approach! One of the tactics that we use with our agents is to help them break large goals into smaller, more consumable goals. If the agents consistently hit their smaller goals, they will ultimately hit (or surpass) their larger annual goals.
For example, say that you want to complete a total of 36 transactions this year. Great! The first thing you should do is divide your total goal by 12 (representing 12 months in the year). Okay...so that tells you that to hit your goal, you need to complete a minimum of 3 transactions per month. But wait...when you set your initial goal, did you factor in other expenses (i.e., Association dues, MLS dues, marketing expenses, administrative expenses, taxes, etc.)? No? Well, then you may need 1-2 (or more) transactions to subsidize those expenses and still hit the goal number of income that you want to achieve. You see, there is a big difference between your Baseline Goals (what you need to survive) and your Growth Goals (what you want to achieve). Many agents make the mistake of setting Baseline Goals then wonder why they aren't growing or why they're constantly in debt.
If this is you, don't worry. This is a pretty easy fix. We recommend backing into your goals. Establishing what you need to make, what you want to make, and what you're willing to do in order to achieve those goals. Then, work with a coach (hey, we've got those too, just drop us a line! ) to help track your progress. Approaching your business with a "big picture mindset" can have a drastic impact on your success. Many agents ask if this cost vs. benefit approach of a big picture mindset will impact their level of service. My answer, "don't let it." Evaluating the cost and benefits of transactions, relationships, etc. doesn't make you an impersonal business owner, it makes you a smart business owner. Remember, the biggest payouts aren't always in the form of a check. Sometimes, it is the relationship that has all the value.
Until next time...