Now that you have looked at all aspects of your business you are now ready to build your “Business Plan”.  Where do you start?  How do I decide on numbers?  What steps do I need to take to put my thoughts on paper?  Make a plan, a roadmap, of where you would like to be financially at the end of this year, at the end of 3 years, and at the end of 5 years.  Experienced agents need to look at their past year and see how they can improve, new agents can decide what amount of income they need to earn to support a lifestyle for them and their families.
When you decide on an amount of income you must include cost of doing business, MLS fees, dues, advertising and other related business expenses.  Please remember the old adage it takes money to make money so allow certain expenses  to keep yourself up with technology.  How’s your cell?  Do you need a laptop to be more productive?  Do you need any software or maybe PDA’s so you can work smarter?  All these expenses should be placed on top of your financial needs and while your year progresses make the expenditures necessary to build your business.

When building your sales forecast for the year I suggest you allow for market trends based on national and local averages.  Below I have put the national averages, if you have been in business for a few years, look at your own business.  List local market trends.

National Averages
1st Quarter 20%
2nd Quarter 30%
3rd Quarter 36%
4th Quarter 14%

Your estimates
1st Quarter %
2nd Quarter %
3rd Quarter %
4th Quarter %

When you project your annual sales use percentages from above to give you benchmarks to track your progress through out the year.

Many times real estate professionals will say, “I need to make $30,000 a year so I need to sell a million and half to net $31,500.  What about cost of doing business?

Dues
Advertising
Cost of Training
Closing Gifts MLS Fees
Desk Fee
Conventions
Wardrobe Lockbox Fees
Vehicle Expenses
Signs and Cards