How to Let a GPS Guide Your Way in Real Estate – by Dana Sparks
The technology behind the GPS has effected us all. You turn on the GPS, program in your destination and hit “start.” This little machine then guides your way from where you are now to where you want to go! If you get off the path, it will “recalculate” your journey to get you back on track.
The GPS technology exists all around and is available to assist us all at any time. You can have a GPS unit in your car, your computer, on your phone or on your tablet. You can program in a specific destinations, general points of interest, specific stops along the way such as a particular restaurant or general filling station.
Your Business Plan for 2014 is the global positioning satellite for your career! You begin where you are currently, decide where you want to be at the end of December 2014, plan your route, then “recalculate” if you get off course!
Unlike a Garmin or Tom-Tom, you must do a little more of the calculations to plan out your journey for 2014. The easiest way to begin your business plan is with a few basic calculations:
- Income for 2013
- Number of Transactions
- Average Commission per transaction
- Number of Listings Closed
- Number of Buyers Closed
- Sources of Sellers
- Sources of Buyers
- Target income for 2014
You simply plug in your numbers and your journey is set! Just like travelling from point A to point B and keeping your GPS operating to guide your way, refer to your 2014 business plan often so that when you get off course, you may “recalculate” your way back towards your destination!
- Income for 2013: $72,000
- Number of Transactions: 20
- Average Commission per Transaction: $3,600 (= ave. Sale Price of $120000)
- Number of Listings Closed: 6
- Number of Buyers Closed: 14
- Target Income for 2014: $82,000
2014 Business Plan: (Several Options)
- Increase your average sale price to $137,000 and do the same number of deals
- Increase your number of transactions to 23 at the same average sale price
- Target more Listings and fewer Buyers
Once you break down your business to the basic numbers, then you have several options available to you to easily achieve your goals and you will know specifically what you can do to make whatever type of income that YOU choose to make in your career for 2014!
We will have several Business Planning Courses throughout the fourth quarter throughout our offices so please attend for more specifics on how we can help you achieve your real estate goals for 2014!