Welcome back to your Business Plan! How did you do writing your Situation Analysis? Did you write down everything that affects your real estate career? It's important to do this because we're going to take some of those things that were written in Situation Analysis and drop them down to our Objectives (Goals) section.

Remember, the components of the Business Plan are:

S		ituation Analysis
M		ission Statement
O		bjectives
S		trategies
T		actics

Today we will focus on Mission Statement and Objectives.

Your Mission Statement describes "who you are". It presents a verbal image of who you are and what you do. A Mission Statement should contain few words (it should not be several paragraphs long).

An example: Honesty, integrity, professionalism, and dedication set (Agent's name) apart from other agents in the listing and selling of real estate in Sussex County.

Another example: (Agent's Name) is the leading edge in the listing and selling of real estate in Sussex County.

Take some of the magazines you receive and find words that describe you. Put them together in a format that lets the world know who you are, what you do, and where you do it. That's a Mission Statement.

Now the fun part-Objectives!

Objectives are your goals. Remember I said it was important to write down everything that affected your real estate life. Well, here's where we bring it down from Situation Analysis to Objectives. Perhaps you said you were disorganized. An objective now would become:

I will take a Time Management course by December 31, 2006.

(Your goals should not be ambiguous [I'll try to get organized.] They need to be specific and with a time or date attached. With this example, it will be very clear by January 1, 2007, if you've met this goal.)

Objectives will always have the amount of money you want to make, the number of listings you want to take, and the number of sales you want to make. Objectives will also contain any number of goals from the Situation Analysis section, and can also contain personal goals (I will take a two week vacation before the end of the first quarter of 2007.)

Here's an example of what the Objectives section of your Business Plan might look like:

OBJECTIVES:

1. I will make $75,000 from listings and sales during 2007.
2. I will take 15 listings during 2007.
3. I will make 15 sales that will settle during 2007.
4. I will take a computer course focusing on Contact Management during the first half of 2007.
5. I will take my family on a 2 week vacation before October 1, 2007.

Once we put down how much money we want to make, then we need to determine how we arrive at the number of listings and sales we need to make to accomplish the "money" goal. To do this, it will be necessary for you to determine what your (or your office's) average commission per transaction is. If, for example, your average commission is $3000, then to make $75,000 you will need 25 transactions. ($75,000 divided by $3000 = 25 transactions.)

Now you must decide how many of the 25 transactions will be listings and how many will be sales. If you say that you're going to take 12 listings, you must ask yourself: "will all 12 listings sell?" Perhaps, then you need to take 15 listings, knowing that only 12 of the listings will sell. If 12 listings sell, and your average commission is $3000, then you now have $36,000 towards your goal. That leaves you $39,000 to earn through sales. $39,000 divided by $3000 average commission means you need to make 13 sales.

I hope you have the idea now of how to work the Objectives section.

Next week we will focus on how we're going to get those listings and sales.

That's it for now. See you next week!

Business Plan - Part 3 >>

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