I recently wrote an article titled “The One Page Business Plan for Restaurants”, that generated a lot of positive feedback.
If you are working with a start-up business or new client, it is a simple way to help your client get focused and realistic about their budget and site selection options. You can click here to read it. The same principals apply to your brokerage business.
One Page Business Plan for Commercial Agents & Brokers
If you have ever written a formal business plan, you know they are often full of fluff and “pie-in-the-sky” five year projections. The following is a simple one page business plan you can use to quickly ask yourself the right questions and develop a plan based on your answers.
What is your Niche?
Your target market is just the starting point to determine your niche and ideal client. Your target market could be shopping center owners in Los Angeles. This target market is too broad. Narrow your market down further to create your niche. What type of shopping center? Do you specialize in a specific trade area or neighborhood?
Your niche may be single-tenant Walgreen’s in San Diego.
Define your niche:__________
Who is Your Ideal Client?
There are many property types and even more types of property owners.
How do you describe your ideal client? Do you want to work with institutional owners? Are you fluent in a second language and want to work with owners who speak that language? Do you want to work with owners that own “A” locations in high rent areas?
Using the Walgreen’s sample, your ideal clients may be doctors that own Walgreen’s in San Diego. The more you can focus on a narrow niche, the faster you will become an expert and own your market. When you are determining your niche make sure the market is large enough to support your sales goals.
Define your ideal client:__________
Size of Your Target Market/Ideal Customer
If you live and work in a small market you may need to broaden your niche to include a larger geography or expand your product type. Your niche may be owners of single-tenant Walgreen’s and Rite-Aid’s in Houston.
Define the size of your market:__________
What’s important to my ideal client?
Why do your ideal clients own commercial real estate? What are their biggest hopes, dreams and fears? The owner of a Walgreen’s is probably more concerned with limiting risk and minimizing management compared with a value-add investor who’s main goal is to maximize return and is usually more tolerant of risk. Understanding your client’s “wants” and “needs” is critical to effectively position your brand and services to prospective clients.
What are the pains, wants and needs of your client:__________
Who are your competitors?
Can you penetrate this market based on your competitors’ strengths and weaknesses?
Do the Math
Just as you cannot expect an investment property with bogus income and expenses to sell at the advertised sale price, you cannot expect to meet your goals if you do not understand the key numbers that affect your business.
Step 1: Determine number of transactions required per year
$_____annual income / $_____average commission = #_____transactions per year
Step 2: How many listings/assignments are required to reach # transactions goal?
#_____transactions / ratio of deals closed per listings = #_____listings required per year
Step 3: How many presentations do you need to make to secure a listing (close ratio)?
#_____ listing presentations to secure listing
Step 4: How many leads do you need to generate to secure a meeting (conversion rate)?
#_____ leads needed to secure meeting
1) Determine your Target Market
2) Narrow Down Your Niche
3) Define Your Ideal Client
4) Run the Numbers
Using the information above, you have defined your niche and created a profile of your ideal client. You have a good idea of how many prospects you need to reach and how many deals you need to close to reach your goal. You are now ready to develop a tactical plan of action to test your assumptions and modify your plan as needed based on the results. Future articles will discuss “How to Determine Customer Acquisition Costs”.
If you found this article useful, please leave a comment below and be sure to describe your niche.
Best of Luck!