Importance Of Making A Business Plan In Realty Business

"Today's real estate professional needs to come up with a realtor marketing plan so that they know there marketing dollars are being spent wisely

. It no longer makes financial sense to advertise in every local paper and phone book or school program just because you have done it in the past. Today's professional realtor needs to evaluate each marketing expenditure and decide if it is providing the proper return on investment. You can set your own return on investment goals for each type of marketing expense but you will need to come up with ways to track each and every one.

Marketers for year shave come up with various ways to source code their ads to track which ones are providing the most leads. In the car business it is known that it costs an average of $400 to bring a buyer into the dealership and close a sale. You need to determine what the cost per lead is on an average basis and measure all of your marketing expenditures by that figure. If you build the hard numbers into your realtor marketing plan then you can have the proper tools to make the decisions on when to cut a particular ad cost or change where you are putting your marketing dollars.

Regardless of the kind of business, it is imperative that you have a plan. Without a plan, you will not be able to handle risks and unexpected events and this can put everything in disarray, if not in bankruptcy. When it comes to real estate, making plans is also important to make sure that you can effectively manage all your transactions and all the things that are important in achieving your objectives.

As a realtor, you need a realtor business plan which can include a cash flow forecast, sales forecast and a projected profit and loss account for at least three years. Businesses that are larger should also draw up a projected balance sheet. The figures that will be used should be reasonable - avoid being overoptimistic. Aside from this, you need a very good marketing formula to effectively reach out to your future clients.

The people who will make the most impact on your business are, of course, the sellers. You can sell more of your own listings faster if it will be easy for them to help you sell their house. An easy and inexpensive way to make this easy for your seller is to create realtor flyers with a photo of the house, a toll-free number, address and other important information.

You can also use the Internet to let everyone know that you are selling your house or your property. In short, the buyer could be your neighbor's best friend, your neighbor's workmate, your high school son's cousins, or your uncle's friend. The goal is to be able to reach out to those potential buyers. This kind of strategy generates more interest in your property, increased the odds of a faster sale and increases the number of showings.

You will need the following to be able to carry out this strategy:

A digital camera (digicam) to get a picture of the house and the ability to download the pictures to your PC.

Access to MS Publisher or programs like it to create your business cards.

A land line number with several extensions. You will record two to three-minute messages describing the house for each extension.

Always remember that a sold listing is a good listing. Use inexpensive strategies and get your seller involved so you sell you more of your own listings, and make twice your projected income. Remember, it's all about your plan. This is simply an indispensable component in every successful business there is.

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by: Henry Watts

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