Wednesday, October 28, 2009

Why Plan Your Business


It is amazing to me how many people try to operate a business without a business plan. It is amazing how many sales people try to sell real estate, or anything, without a business plan. Planning your business is like planning your wedding or planning your vacation - it is the time you spend to make sure that things happen the way you want them to happen.

Planning is work. It is important work. Steven Covey would say that it is quadrant two work; it is important, but not urgent.

Because it is not urgent, so many people never take the time to plan. Most people simply react to the next stimulus. They wait for a buyer to call or a past client to offer a referral. They provide great service to their current customers and they hope that there will be a stream of future customers when they have closed their current transactions. Maybe they do a little marketing here and there - mostly when they have run out of current customers and clients. They have no systems, no prospecting habits, no mailing program, no networking practice.

Most salespeople are dependent upon the market to provide for them a source of leads. They rely on floor or opportunity time to generate leads for them. They count on open houses to bring in current buyers or sellers. Sometimes they even pay for leads through online sources. As the market grows their business grows, but as the market slows
their business slows.

Many agents become addicted to the servicing of buyers and sellers and begin to believe that that is their work. They fail to realize that their primary work is the generation and conversion of sales leads. In essence they take their eyes off the prize - the cultivation of future business. Their success is limited by the number of hours in a day and/or the number of leads they get lucky enough to come across.

We have all heard the expression that luck is when preparation meets opportunity. Planning IS the preparation part. It is the part where you CREATE the opportunities.

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