Every week, we ask a real estate professional for their Short List, a collection of tips and recommendations on an essential topic in real estate. This week, we talked with Veronica Mullenix, the broker/owner of Veronica Mullenix Real Estate Group in Katy.
A successful business plan doesn’t have to be fancy. It does, however, need to have several layers. You need to develop an income plan, an online marketing plan and an offline marketing plan. These plans need to be tied to the budget you’ve established for operating your business.
- Your income plan begins with how much you want to earn this year. Consider in what neighborhoods, subdivisions and areas your want to focus your activity. Don’t worry about having a narrow focus because over the course of the year you will receive referral business in a variety of areas.
- However, you do need to have a specific place in mind where you want to do business. Using the MLS data, research what the average price range is in the neighborhood you are focusing on. Then calculate how many units you would have to sell at the average sales price of the neighborhood to reach your income goal. For instance, if the average price in your target neighborhood is $225,000, you would have to sell about 18 homes at that price to net a GCI of $120,000. Your net income calculations should be based on the commission agreement you have with your broker.
- Your marketing plans begin with ideas for ways to put yourself in the path of the business. Start by learning everything you can about the residents and their interests in your target neighborhood. Also, learn about the employers in the area.
- Then tailor your marketing messages to your audiences’ interests. For example, in my neighborhood, many of the kids are involved in Boy Scouts or Girl Scouts; so I periodically send correspondence to the residents in the area with a tagline “Your Realtor was a Girl Scout”, and the real estate message in the body of the advertisement is one that describes a relationship between the girl scout law and scouting ideals and how they are incorporated into my business practice.
- The objective behind all of your marketing messages is to create a relationship between yourself and like-minded people. A marketing advertisement that only states “I sold 100 homes last year and I can sell yours too” does not build the relationship bond that the message , “The ideals of integrity and respect for others learned as a Girl Scout are the fabric of my real estate practice. Honesty, fairness; being caring and courageous, and responsible for what I say and do every day are the ideals of The Girl Scout Law and the ideals of Veronica Mullenix Real Estate Group.” This message implies an invitation into a relationship with like-minded persons, not a glaring sales pitch.
- Design a monthly marketing plan that centers on relationship development with the consumer who is receiving your message.
- Also include in your marketing plans a plan for being involved in the community, supporting a local charity or local organization on a consistent basis. Choose something that you are dedicated to or that is somehow personal to you. For example, I created the Realtor Partner Program for Katy PTAs as a fundraising initiative for local school PTAs because I have a degree in elementary education and was an elementary school teacher for ten years. I know how challenging it is for PTAs to raise funds. My background in education opens doors for me to deliver my message and raise funds for PTAs. It enables me to meet people I would not otherwise have the opportunity to meet. When you, too, have a personal connection to the organizations or charities you’ve chosen to align yourself with that makes you more authentic, and your enthusiasm will resonate through your message, and your efforts will be rewarded. Meeting new people is the basis of your real estate practice surviving into the future, so why not meet people through charities and organizations that you love?
Although not all inclusive, incorporating the tips above into your business plan , along with other action items you wish to include, will provide you with a solid written foundation for a successful 2014.