How strong are your foundations? -

5 Tips for reviewing your business plan.

When building a house we need to ensure that our foundations are solid, any crack or subsidence can have a detrimental effect. But as our businesses start to grow we often-loose track of our foundations, the basics sometimes get lost. The first few months of trading we keep an eye on all the details, we may not take our eye completely off them but it can wander from time to time.

No one wants cracks to appear within their company, it’s time to get back to basics. When is the last time you reviewed your systems, checked your paperwork, monitored and reviewed your customer service?

As we are approaching the end of the financial year, what a better time than now to get out your business plan. This is where your company started and this is the foundation that has built your success to date.

My top 5 tips for reviewing your business plan:

1. Know the key numbers in your business.

As estate agents we are naturally driven and focused on the number of sales. When asked on the details on their finances things can be a little fuzzy around the edges. Can you answer the following questions?

  • What is your target for the year?
  • What is your average fee?
  • How many completions do you need to achieve this?
  • What is your abortive rate?
  • How many instructions do you need?
  • How many valuations do you need?
  • What is your average time on the market?
  • Businesses who know their numbers have an edge on the ones that don’t.

    2. How can you demonstrate differential from your Competitors to justify your fee?

    Who are your competitors? Your business plan should contain a list of all of your competitors and their strengths and weaknesses. A competitive analysis allows you to learn what others are doing and more importantly why. Are they doing something different that you can learn from? Know you competitors and strengthen your business.

    3. How well do you know your market? Type, Profile and Geography?

    Markets evolve and need to be reviewed to ensure we are meeting it’s new needs and wants.

  • Do you know your typical vendor?
  • Is your marketing aimed at them?
  • Is there a type of property that dominates your instructions?
  • Is there a type of property you want to dominate your instructions and how do you attract them?
  • Can you create a new service streams to attract new vendors?
  • Without knowing your market completely you could waste time and money on marketing and advertising they may not generate business. The more focused your strategies the better return on your investment.

  • 4. Do a SWOT analysis? What are Strengths, Weaknesses, Opportunities and Threats?

    Its important to review your SWOT analysis as your environments change you need to respond proactively. Knowledge as they say is power, and that is indeed true when reviewing the SWOT analysis. Knowing the positives and negatives of your business allows you to put strategies into place to allow you and your team to move forward. Be open to new possibilities.

    5. What is my market share?

    Do you know what percentage of the business is coming through your doors? It is important to evaluate your market share to understand the impact your estate agency is having within your area. Increase your market share - increase your business substantially.

    Review your business plan now and start the next financial year with strong foundations.

    Get in touch to see how we can help you improve your business plan today for increased business tomorrow. Call Stephen on 07976 297634