| If I hear one more business “guru” or | | | | no matter how good. From that point, we parked |
| so-called expert say that you don’t need a | | | | the marketing plan and focused on the business |
| plan I am going to puke...and then slap someone. | | | | strategy. |
| Yes, there are real short-term benefits of being | | | | We agreed on a plan to take on no clients |
| able to change course on a dime, but nobody | | | | unless the property was over $500,000 and we |
| seems to be pointing out that while it is OK to | | | | had a very good chance of getting both sides of |
| change tactics to achieve a certain goal, the goal | | | | the commission. For a top producer this is a HUGE |
| remains steadfast. | | | | change. They are ingrained to take any business, |
| Let me explain… | | | | anyway they can. Because he was so fantastic at |
| Think of it this way – A business plan is your | | | | converting calls to qualified leads, we set up a |
| destination. Say you are planning to drive from | | | | referral program to front our tier 2 prospects to |
| home in Florida to hang out with your relatives for | | | | other agents in exchange for 25% of the final |
| Christmas in Massachusetts. (I wonder how I | | | | commission. That allowed us to keep in place |
| came up with that example…) My business plan | | | | turnkey marketing programs targeted to smaller |
| is to get to MA. Now my marketing plan is my | | | | profit centers, and still earn a healthy side income |
| tactics. Those are the roads, highways, and rest | | | | on very little work. |
| stops along the way. | | | | With this strategy in place, we were allowed once |
| So suppose there is an accident or construction | | | | again to focus on our marketing plan to help roll in |
| along the way. Then you change course- your | | | | larger, more profitable clients. We still continued to |
| tactics. Suppose a friend tells you about a | | | | get calls every day for smaller clients, and many |
| shortcut. You change tactics. What does not | | | | times, we had the perfect buyer ready to roll |
| change is your final goal. To get to your family in | | | | within the hour on the sale, but we had agreed to |
| MA. The simple truth is that if you don’t | | | | only focus on larger clients, REGARDLESS of how |
| know where you are going, clearly, succinctly, and | | | | quick or easy we knew the sale would be. For |
| in writing – the obstacles, distractions, and | | | | weeks he would look over at me with puppy dog |
| peripheral mini-wins are going to trip you up. | | | | eyes begging to take on this easy client, and I |
| Here is where most people slip up | | | | would point to our business strategy on the wall. |
| Suppose you are driving along and your wife sees | | | | Eventually he got the idea and stopped |
| a giant sign that says 99% off Jimmy Choo | | | | whimpering. |
| shoes, or I see a sign that says “Today only, | | | | Moral of the Story: Without the business plan in |
| 80-inch plasma TV’s for $1” Do we stop? | | | | place, we would have NEVER been able to switch |
| No. Seriously? Yes. Now if along the way we | | | | gears and focus on where our real profit centers |
| found a back road that will get us to | | | | lay. |
| Massachusetts 1 hour sooner, do we take it? | | | | Did it work? |
| THAT is where it is a maybe or a yes. Do you | | | | - Pre-plan $200k commissions |
| get the distinction? Stopping for a deal, even a | | | | - Year 1: $400k commissions |
| ridiculously good one, has nothing to do with our | | | | - Year 2: $1.2Million commissions |
| final goal (to get to MA) but changing course for a | | | | Not a bad split for 2 guys. |
| potential of reaching the goal sooner or better | | | | So, in closing… |
| (even if marginal) is something we will evaluate. | | | | I hope you can now understand my belief that a |
| You say, “So let me get this straight. I pass | | | | solid, written business plan is where it’s at. |
| up a 80” plasma for $1, but I take a back | | | | That does not mean that it is set in stone, nor |
| road that will make my trip 1/20 shorter?” | | | | does it mean that you should have the ole’ |
| – Yup. | | | | football spirit of “Never Quit. Never |
| So how to you combat this? | | | | Surrender.” There are times when you should |
| THIS is the reason you need a business plan. If | | | | quit, and there are times when you should |
| you did not have a clear, written goal you can | | | | surrender. You just need to have the discipline to |
| refer to ALL THE TIME, there is no way you or I | | | | treat these as serious strategic decisions, not |
| would have the perspective or willpower to | | | | off-the-cuff alternatives. If, on my trip to MA, my |
| achieve it. | | | | wife went into labor, or close relative died, that |
| Perhaps the best way to get this to sink in is an | | | | would be a game changer. My goal itself now |
| example back from my days as a principal in an | | | | changes. In business that is the equivalent of the |
| investment real estate firm. A few years back, I | | | | advent of the Pony Express, the Steam Engine, |
| started working with one of the best sales | | | | the Automobile, the Television, or the Internet. |
| professionals I had ever met. Business was great, | | | | Once those shifts happen, everything changes, |
| he was working 70 hours a week, and pulling in | | | | and your business plan will need to as well. |
| great paychecks. After consulting with him a few | | | | Well hope this was helpful to someone. In case |
| weeks and creating a killer marketing plan, we | | | | you haven’t figured it out yet, my next post |
| realized we had a bottleneck. Him. He was already | | | | will be …..hold it….hold it… Yes! The One Page |
| working crazy hours and there were just not | | | | Business Plan. Stay tuned! |
| enough hours in a day to take on new business | | | | |