008: Business Planning, Part 1: The Principles with Mark Given
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Running your business like a business is crucial for getting value for your business. Today\\u2019s episode is the first of two episodes that touch on the business planning aspects of real estate. As\\xa0REALTORS\\xae, it is crucial to plan and be wise in the real estate business and think of yourself as a business person. Mark Given joins Monica today to talk about a number of things that should become part of your business plan: finding a mentor, how to foster a good broker relationship, the cost of training (or not having training) in several areas, as well as niche positions in the market and keeping up with your past clients. They also discuss aspects of building a team and being proactive in your business.
When an agent is starting a real estate business, there is a lot to consider in getting started. One big aspect to consider is the cost of getting into the business; not only getting the license, but also membership fees, marketing expenses, and the out-of-pocket expenses until your business can sustain itself and support you.
One of the first things a new agent has to do is find a brokerage firm. You need to find a good fit with your broker, so they can help nurture you and gain momentum. Looking for a brokerage firm that has potential mentors, a good educational program, and a culture that connects with who you are. Looking for mentors both within and outside the company is important in getting honest answers to some important questions. Learning to ask good questions is a huge part of the real estate industry.
Understanding the money aspect of real estate is important in showing a profit and actually making money in your business. You likely won\\u2019t be closing on any deals right away, and you have to budget for the periods of time that you don\\u2019t have any revenue. Some expenses include gas, marketing, MLS and association fees, and other additional business fees. Taking a class that talks about the cost of running your business is a great idea for new agents \\u2014 you don\\u2019t want surprises that might cause stress that would prevent you from performing at your highest level. You also don\\u2019t want to get ahead of yourself; don\\u2019t spend it before you make it!
Training should be part of your business plan as well. Not only for new agents \\u2014 there is always new information to be learned. It is very beneficial to do more training besides what is required for your continuing education. This can help grow your own confidence, and make your business more successful.
Most agents run their real estate business as a generalist. There are plenty of agents who succeed running their business this way, but Mark has found that agents that take the time to specialize in a given niche often become the \\u201cgo-to\\u201d person for that niche. If you\\u2019re going to run your business like a business, it\\u2019s in becoming really good at some part of a business that you become recognized as the best person for that part.
Keeping up with your clients after a sale is a great source of ongoing business. Many of the most content\\xa0REALTORS\\xae\\xa0are providing service for clients they have worked with before. When thinking about where business is going to come from in your marketing, think about clients you have worked with before and had a good experience with. Consumers should have an ideal agent, and agents should also have an ideal consumer. Making an effort to keep in touch with previous clients is not rocket science, it\\u2019s people science. Part of building your business properly is to show both competence and care.
The team model has been making a rise in the real estate industry. When you have a team, you have to think about the financial side and compensation, as well as the skill side. You want to have a well-rounded group of people with different abilities and skills. It is important to communicate and hire in a way that matches up the right people together in a team. These things are important to consider before you start or join a team \\u2014 make a business plan before jumping into it. Another thing to consider as you are building your team is preparing someone who is going to take over for you when you\\u2019re ready to move on. Build your business so it\\u2019s a sellable business and also one that current clients will continue to use even when you\\u2019re gone.
It is crucial for people running a real estate business to have better systems. Some of these systems include contact management systems or systems that track your business\\u2019s profit. Your management systems are only as good as the information you put in them. You need to have some systems in place to make sure you\\u2019re doing things in a timely manner, and following up with your clients. There are many companies that already have these systems in place \\u2014 take advantage of them! Start your day by making a plan for what you need to get done that day.
One final aspect is being proactive in your business. When you\\u2019re proactive in your communication, both you and your clients will have more peace. Running a business is about having a plan for how you\\u2019re going to spend your money, how you\\u2019re going to get trained, and how you\\u2019re going to give great customer service to your clients.
There was a lot of information covered in today\\u2019s episode, and Mark\\u2019s advice is to take one area and start focusing on what you can do to improve in that area. Even though they seem simple, the more focused and organized you get in these aspects, the better our businesses are going to run. Building your business like a business will give it real value.
Guest Links:
The 7 Habits of Highly Effective People\\xae, by Steven R. Covey
The On-Purpose Person: Making Your Life Make Sense, by Kevin W. McCarthy
The On-Purpose Business Person: Doing More of What You Do Best More Profitably,
by Kevin W. McCarthy
Books coming out in 2018:
Trust Based Leadership
Trust Based Success
Trust Based Selling
Additional links:
Visit the Center for\\xa0REALTOR\\xae\\xa0Development Online Learning Platform:
Onlinelearning.REALTOR\\xae\\xa0Coupon Code: Podcast
Find a Live Classroom Designation or Certification Class at Training4RE.com
Center for REALTOR\\xae\\xa0Development
Guest Bio:
After attending The Ohio State University and graduating from Elon College, Mark spent 20 years as CEO of a multi-state retail sales and rental company that grew to 47 locations. He spent the next 18 years as a REALTOR\\xae, volunteer, and community leader. All along the way, Mark has invested tens of thousands of hours speaking and teaching the Trust Based Philosophy systems, leadership skills, sales skills and personal master systems with companies and organizations just like yours.
Mark has been teaching real estate courses nationally since 2004. He has trained or spoken in 46 states for mega, large, and small private companies for nearly a hundred associations, and at the NATIONAL ASSOCIATION OF REALTORS\\xae annual Convention and Mid-Year Meetings.
He was twice the President of Roanoke Valley Lake Gaston Board of REALTORS\\xae, President of the North Carolina CRS Chapter, served on the NRA Professional Development Committee and has served on many additional committees for the NAR, the North Carolina Association of REALTORS\\xae\\xa0and his local board.
Mark has been honored as REALTOR\\xae\\xa0of the Year for his local board and NC CRS of the Year as well as many other REALTOR\\xae and non-REALTOR\\xae honors.
In addition to his speaking and teaching career, Mark is a prolific author; evidenced by his Trust Based Philosophy book series and his Amazon #1 Best Selling book, Finding My Why: Ernie\\u2019s Journey. Mark has also co-written four other books and writes his weekly blog, Mark\\u2019s Minute, which is read by thousands of people every week.
Host Information:
Monica Neubauer
Speaker/Podcaster/Realtor
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