RESIDENTIAL BROKERAGE



Sample Business Plan

following is a business plan submitted by Donald J. Gerberg, a Certified Residential Specialist in Sparta, New Jersey.

The Business Plan

For

2004

The year to set new standards of

success and achievement.

A few thoughts about 2003.

It was a huge transition year. I changed companies.

The move to Weichert was and is incredibly positive.

Yet, changing offices is a major event and as a result,

my production suffered.

As I begin to plan for 2004,

I feel renewed, refreshed and committed to outstanding results,

ready to demonstrate Weichert’s faith and belief in my abilities.

| |

|Goals versus Results |

|2003 |

| | |

|Goal |Result |

| | |

|1. Income: $120, 840 |1. $64,000 |

| | |

|2. GRI: 1,800 |2. 1,500 |

| | |

|3. 30 revenue units |3. 15 |

| | |

|4. Average Sale Price: $265, 000 |4. $300,367 |

| | |

|5. Average commission: $3,392 |5. $3,578 |

| | |

|6. Average bonus: $636 |6. $988 |

| | |

|7. “I” time: 20 hours per month |7. 14 |

| | |

|8. Appointments per month: 25 |8. 17.4 |

| | |

|9. 4 newsletters |9. 6 |

| | |

|10. 4 postcards |10. 3 |

| | |

|11. 30 FORD calls per month |11. 37 |

| | |

|12. 25 rounds of golf |12. 20 |

| | |

|13. Make Circle of Excellence |13. Achieved |

| | |

|14. Make Distinguished Sales Club |14. Achieved |

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| | |

| | |

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| | |

| | |

| | |

Income 2003 Real Estate

| |Code |Address/Description |Source |MDC |

|Operations |Phone-home |50 x 12 |600.00 | |

| |Phone-cell |60 x 12 |720.00 | |

| |Dues |GSMLS |256.00 | |

| |Dues |CRS |140.00 | |

| |Dues |Sussex Board |300.00 | |

| |Legal Defense | |450.00 | |

| |Internet Access | |276.00 | |

| |Day Timer | |100.00 | |

| | | | | |

| |Misc. | |500.00 | |

| | | | |$3,336.00 |

| | | | | |

|Marketing |Photography | |1,400.00 | |

| |Paper | |200.00 | |

| |Papoose Ad |6 x 80 |480.00 | |

| |ADG | |2,000.00 | |

| |Inspections | |300.00 | |

| |Labels | |695.00 | |

| |Overnight Mail | |100.00 | |

| |Internet | |500.00 | |

| | “ | |600.00 | |

| | | | | |

| |Assistant | |4,000.00 | |

| |Postage | |1,500.00 | |

| |Entertainment | |1,000.00 | |

| |Surprises | |750.00 | |

| |Coach | |2,500.00 | |

| |Education |CRS course |500.00 | |

| | | | | |

| |Misc. | |1,000.00 |$17,525.00 |

|Reserves | |125 x 25 |3,125.00 | |

| | | | |$3,125.00 |

|Personal | | |15,000.00 | |

| | | | |$15,000.00 |

|Home | |2100 x 12 |25,200.00 | |

| | |Utilities |2,377.00 | |

| | |Surprises |750.00 |$28,327.00 |

|Car fund | | |5,000.00 | |

| | | | |$5,000.00 |

|Mortgage |Pay off contrib. | |5,000.00 | |

| | | | |$5,000.00 |

|Retirement |IRA | |4,000.00 | |

| |New England Life | |2,400.00 |$6,400.00 |

| | | | | |

|Sub Total | | | |$83,713.00 |

| | | | | |

| | | | | |

|Taxes | | | |$35,849.00 |

| | | | | |

| | | | | |

|Totals | | | |$119,590.00 |

| | | | | | |

| | | | | | |

| | | | | | |

| | | | | | |

| | | | | | |

| | | | | | |

| | | | | | |

| | |Break even $$ needed | | |$119,497.00 |

| | | | | | |

| |Expenses |Additional Required | | |$15,000.00 |

| | | | | | |

| | |Total | | |$134,497.00 |

| | | | | | |

| |Income | | | | |

| | |GRI | |$1,500 | |

| | |Other | |$4,800 | |

| | | | | | |

| | |R.U.’s |25 x 3900 |$97,500 | |

| | |Bonus |25 x 1400 |$35,000 | |

| | | | | | |

| | |Total | |$138,000 | |

| | | | | | |

| |Volume |300,000 x 25 | |$7,500.00 | |

Income Page for 2004

2004 Activity Commitments

1. Increase “I-TIME” to 20 hours per month.

*Schedule three 2.5 hour sessions per month for the sole purpose of making FORD calls.

2. Increase number of appointments to 20 per month.

3. Do 14 mailings to basic list.

*Four “statistics” newsletters.

*Four information newsletters.

*Four postcards (also including postcard only list).

*Two “jumbo listing” postcards.

4. Increase Weichert agent-to-agent marketing to 50 agents 4 times per year (postcards and 1 FORD call per year)

5. Make 60 FORD calls per month.

6. Hold 8 Sunday Open Houses.

7. Raise average commission from 1.1% to 1.3%.

*”Ask and you shall receive”

8. On a monthly basis … formally review progress being made toward goals and objectives.

2004 Activity Commitments

9. Make Lori more effective:

*She must get her real estate license

*Raise her hours to 10 per week

*Ger her to become an effective prospector

10. Qualify for Weichert trip.

11. Attend CRS course in AC – June 2004

12. Play golf once a week from May 1 through Oct 1 … lowering handicap to 15.

13. Take a significant vacation (8 or more days) in Sept. or Oct. to Alaska or Paris or London.

14. Take a five day break to the Broadmoor.

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