By Gino Blefari
This week my travels find me in Northern California, taking meetings, organizing calls and just this morning, leading a teleconference with Debbie De Grote, founder/CEO of Excelleum Coaching & Consulting all about business planning. For all of us, a business plan is vital because even as an agent we must think of ourselves as a business, and all businesses must have a plan. Remember the wise words of Benjamin Franklin: “If you fail to plan, you are planning to fail.”
Some may think it’s strange though to have a business-planning call at the end of August but there’s a reason for this exact timing. During my 30+ years in the real estate business—as an agent, a manager and an owner of a company—I’ve always found that there’s a cash flow problem in the months of January and February. This applies to agents as much as it does to owners.
Why? Because real estate operates on a 90-day cycle, so what we do 90 days before gets paid out 90 days later. This means a lag in business during the fall months will show up in Q1 of the new year. The lag is understandable, though avoidable; it’s obvious to notice right after Halloween a great number of agents go into hibernation. There’s Thanksgiving, the holidays … life gets busy and business gets put on the back burner. (Extrapolate those 90 days during this lull and you’ll understand clearly why cash-flow problems plague us in January and February.)
To get you started, access our Business Planning Essentials by clicking HERE.
Starting now, I want us to no longer think of Jan. 1 as the beginning of the new year. Our new start? Oct. 1. If we assume Oct. 1 is the “new” New Year, then we have to take the month of September to complete our business plan by that date, which explains our late-August business-planning call.
As a small aside, it may seem early but now is a great time to organize the holiday cards you’ll send out, to arrange for a family photo shoot, to make sure you handwrite those messages (if possible) for your prospective and current clients. You want your holiday card to be in the mail on the Wednesday before Thanksgiving so when that Friday hits and everyone is shopping and home with family, yours is the first card they receive. (As a tip, make sure it has your photo and/or a family photo on it so they’ll be more likely to keep it.)
Another very important aspect of your business plan is to schedule your calendar for the entire year. The first thing to schedule is your vacation, days off—anything that will give you balance. This will ensure that it actually happens and you don’t schedule meetings or calls during the time when you’re supposed to be off.
So, what’s the message? First, if you haven’t already, click HERE to download the Business Planning Essentials document. Then make a promise to dedicate the entire month of September to complete your plan and have it polished, finished and ready to go on Oct. 1. But this timing shouldn’t just be applied now; you should for the rest of your career use this as a framework to build and grow your business. Each year, pledge to complete your business plan by Oct. 1 and then, when everyone else isn’t working or scrambling to business plan over the holidays, you’ll be way ahead of the game.