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.