It’s never too late to start, tweak or revisit your business plan. In fact, the beginning of a new year is a good time to think about your goals for 2021. When writing them down, consider these tips.
Whether you’re fine-tuning your current business plan or getting a late start on a new one, now’s the time to sit down and craft your goals for 2021. Developing a plan is critical to forming a healthy and sustainable real estate business.
By planning for the year ahead, you will have a clear understanding of your overarching goals and can apply the right strategies to achieve them. Below, we’ve outlined our advice for agents preparing their 2021 business plan.
Reflect on 2020
When formulating your business plan, take time to analyze how your local market performed in 2020. Look at the latest market data, and analyze any changes or adjustments. While performing a year-end review of the markets you served, be sure to also audit your own real estate business.
How did your 2020 activity compare to the general market? How do your transactions in 2020 compare to 2019? By taking a look at your strengths and areas that could be improved, you will be able to develop a well-informed plan for the year ahead. Taking the time to really track, measure and reflect on your business will allow you to better target where and what to focus on in this new year.
Your budget is everything
Formulating a budget is the foundation of a business plan. With profits being the goal in any business, expense management is a must-do. Outlining your business expenses, earnings and measuring return on investment will provide a clear picture of how to budget finances for the year ahead.
We also recommend analyzing which areas of the business can potentially be reduced to reallocate extra money where it counts. By creating a budget at the start of every year, you will be able to properly analyze your finances and make smart decisions going forward.
Once your business budget is determined, combine it with your personal budget. Set a financial target that’s high enough to cover both budgets, and also leave room for your hard-earned profits.
Create a 2021 mission statement
Your business plan is your route to success. Instead of aimlessly wandering, a written-out plan will help you lead with clear direction. Take a moment to think about your vision for the new year and draft a mission statement.
When outlining your mission for 2021, ask yourself critical strategic and operational questions. Who is your ideal client? How much time and support should you put aside for training, marketing, industry events and so on? What are your biggest opportunities in your market? Once you’ve identified the answers to these questions, the plan will fall into place.
Incorporating a way to track your progress will let you know what is working and what you may need to adjust in the following quarter. Staying focused on your high-level goals will lead to increased success as the year progresses. By mapping out your 2021 strategy, you will lay the groundwork to ensure your year starts off with a strong foundation.