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WHY DO WE NEED A 4TH QUARTER PLAN?
You might be thinking, "Well, wait a minute, Jeff, why are we talking about the fourth quarter business plan in September? I mean the fourth quarter isn't until October. What are we doing?" Now, you might've seen in our emails or in our Facebook posts, I kind of joke around, "Hey, think the fourth quarter starts in October? Think again, it really starts now."
For those of you that have been doing this for a while or leading real estate offices or managing real estate budgets, and paying attention to listings, sales and so forth, you know that the fourth quarter in the real estate industry is actually September, October, and November. The activities, the actions, the things that take place in December are going to show up in 2021. Which is exactly why we ask and expect agents to have their business plan for the next year done by the end of November. Quite honestly, I know a lot of teams that like to have that done by the middle or the beginning of November. Come December 1, you are actually operating in 2021. You follow me? So really you don't have four months to hit your goal, you have three months left.
WHO IS JEFF?
For those that have never met me before, or maybe this is your first time with us, I've been in this business, 18 years, I'm still on the ground selling between 75 and 100 homes per year personally. I've got over 60 units closed year to date, I'll probably end up around 80 and our team sells close to a thousand units a year here in the great state of Michigan.
So I'm on the ground. I'm with you. I've got a listing appointment later this afternoon. I'll go out and present. I'll use the Glover U listing presentation. The reason why I'm sharing this with you is because I know we have a lot of first timers. So, if you haven't checked any of our stuff out by now, for those of you that have been following us for a while, I know you know this like the back of your hand, but if you haven't been following any of our stuff, one of the best places you can go is the Glover U Inner Circle. It's a free Facebook group. Anytime we've got a new idea, a new strategy, you're looking for role play partners, or you're looking for accountability. We drop it into the Glover U Inner Circle Facebook group. So after this just search Glover U Inner Circle, you'll be able to find it, and it's free to join.
BUSINESS PLAN PART ONE:
So let's start with part one. So far this year, I'm actually only interested in five categories. In the main plan, we have things like, what is your listing to sales ratio? What is your offers made to sales accepted ratio? We get into all those ratios to figure out how many deals you need to do in order to hit your income goals. For now, I only care about these five areas. I want to know so far this year, how many listings you've taken, how many listings you've sold, how many buyer sales you've had. Pretty simple stuff. Total all that up, and then I want to know what is your sales volume? When you total those up, what is the amount of sales volume that you've closed so far this year?
And then of course, I want to know the total income paid year to date. I want to know if you total up all your checks, if you total up all of your income, if you're doing a P&L, your profit and loss statement, I want to know your net income year to date. If you're not doing a profit loss yet, and you just calculate it based on your checks, total up your checks. I want to know where that number stands. In that activity alone, going through part one now, that's going to force you, by the way, I don't know if you keep this in a spreadsheet, if you keep this in your CRM, or if you have a program or your company keeps track of it for you. This is going to force you to go back and look up these numbers.
For some of us, we're going to have a huge awakening. We're going to have a huge kind of, "Oh, shoot" moment. I didn't realize how far behind I was. I've only taken seven listings this year, my goal was 17. How am I going to make up the other 10? Well, hopefully by the time we get through this session, you'll have some ideas on how to do that. This really should be for some of us, unfortunately, a rude awakening. For some of us, because you've had a great year. I know many of our clients who are on this right now, by the way, we've got over 500 clients from around the United States, coaching clients, whether they're in one of our programs or not. A lot of them are having breakout years, banner years, their best year ever. So for some of you, I'm actually going to encourage you to increase your goal.
BUSINESS PLAN PART TWO:
Part two: The goal for the rest of the year. We'll start with listings taken. I want to know what you want to take in terms of listing contracts signed September, October, November. Because that really is the rest of the year. "Well, Jeff, why is that the rest of the year?" Well, because if you take a listing on December the 5th, is it going to close in 2020? No.
Number one, it might not even sell in 2020, but it's definitely not going to close in 2020. So everything we're focused on is September, October, November. I don't even care what happens in December, and we'll get to that in a moment. I want to know listings sold, written, meaning a written sale. What is that? Your listing goes pending, hasn't closed yet. You accept an offer on it. That's a written sale. You write it up on the sold board or wherever you write it up, that's a sale written. There's sales written and there's sales closed. I want to know buyer sales written, how many more buyer sales do you want to have between now and the end of November? September, October, November. Of course, I want to know when you figure out those three, you can estimate actually at that point, how your year is going to end up. If I know that if I sell five listings and I have 10, or if I have five buyer sales, September to November, five listings sold, five buyer sales, that's a total of 10 sales. Let's just say one or two fall apart, which is normal. You have about a 15, 10% fallout, one or two fall apart, times my average sales price. I can figure out approximately what my sales volume is going to be. And then I can take what I already have done, which is up there in part one, add it to what I think I'm going to do, and boom. Now I have a new goal for where I'm going to end up. So do you see the difference there? The first three are just September to November. The last three there, except for database, which we'll talk about in a second, is where you'll end up at the end of the year.
So you have to figure out what you've done so far, based on what you're going to write in September, October, November. Because if you write it in November, chances are it's going to sell and close in December. So therefore I can calculate that and figure out what my end of the year goal will be. And then of course at the bottom of number two, the exchange database, for those of you that were at our event in January, back in Orlando. Hard to believe that January was this year and we had an event with over 500 people. For those of you that were at our event, we spent a lot of time talking about the exchange database. These are people that you've had good exchanges with. One of the focuses of the agents and clients and leaders that worked with us in 2020 was all about building a massive database.
We spent three days on it in Orlando, and I talked about the different definitions of databases. One of those databases being called the exchange database. People whom you've had great exchanges with. Maybe you went on the appointment, you didn't get a contract signed because they're not ready right now. Maybe they referred you to somebody and you couldn't help the person out because they're not ready to do something right now. Maybe you met them at a grocery store and you exchanged a great conversation about the market and they ended up giving you their information. Those are people that should be added to the exchange database. I want to know, between now and the end of the year, how many people are you going to add to that group? Because we're going to do something with that in a second.
BUSINESS PLAN PART THREE:
Part three of the 4th Quarter Business Plan: All right, fourth quarter plan of action. You have 10 spots. Now I'm not necessarily saying you have to use all 10, but you have 10 spots where you can either rewrite some things that you're doing and that are working and that you're taking action on. So again, you reference your old plans, you're going to look at your old plan and then I'll just take the 2020 plan for a second here. In this plan I have an activity called "Action items to implement, to generate new business." Action items to implement to generate new business. Chances are you've taken action on many of these things, but not all of them. There's a list of 10. Maybe you've gotten nine written down and maybe you've taken action on four. What I want you to do is I want you to write down the items that you have taken action on in 2020 that are working, that you've had success with.
Anything that you plan on continuing doing between now and the rest of the year, I want you to write that down in this particular section part three. I also want you to rack your brain and maybe use some advice from this particular session. Get a copy of the Glover Gazette, which you can do by going to gloveru.com/gazette. Get your hands on something, that we're talking about things you can do to generate business. Again, that's gloveru.com/gazette, it's a magazine we produce quarterly.
BUSINESS PLAN PART FOUR:
Part four, the new morning schedule. You want to talk about a part of the day that has shifted more than probably anything else this year. It is the morning routine. I realize with COVID and everything going on, it seems like almost every other month our morning routine has changed. We've got a lot of agents, a lot of clients that are moms, single moms, moms with blended families, a lot of teachers now and homeschoolers and figuring out what to do with school. So when you think about September to November, obviously with the exception of Labor day, once school starts, and I realize in some cities and some States already has. You probably have a new routine, you probably have a new morning schedule.
We were talking with some of our top agents about what their new routines are going to look like now with the current homeschooling, teacher, virtual learning, Tuesday, Wednesday, Thursday in person, all those scenarios that I'm sure you're familiar with. Well, I want to know what your new morning routine is going to be, given the current situation you're in. Now, if you don't have kids, your morning routine probably didn't change at all. But if you do my guess is it did. In the post COVID business plan, I asked you, this was the May plan that we did in the month of May. I wanted to know what your June, July, August schedule would be. Because of course, summer is different than this time of year. Well, now you're going to throw that plan out the window. Now you're going to throw that schedule out the window. And we're going to focus on your new morning routine for September, October, November only. You're getting a break in December. We'll share that in a second.
So essentially I want to know what you do from the time you get up until lunchtime. Because without question, that is the most important time of the day. Master the morning and the day falls into place. If you only focus on one part of the schedule, the rest of your day, the rest of your business will fall into place. I tell people all the time and they hate hearing it. Because it sounds boring, it sounds mundane, but it leads to mastery. When you do the same thing at the same time, I mean brush your teeth at the same time, you're in the shower at the same time, you're arriving at the office at the same time, or you're sitting in your home office at the same time, you're looking up expired opportunities at the same time, you're getting a Facebook post ready at the same time. When you do the same thing at the same time, Monday, Tuesday, Wednesday, Thursday, Friday, that leads to consistent activities, which then lead to consistent income.
Now I realize, given the school situation, maybe your Monday, Wednesday, Friday would look the same and your Tuesday, Thursday would look the same. So what I would recommend you do there, if you're one of those, just draw a line down the center. You got plenty of room there. You just draw a line right down the center. And maybe you have Monday, Wednesday, Friday on the left. Tuesday, Thursday on the right. Or maybe it's Monday, Tuesday, Wednesday on the left, Thursday, Friday on the right. I want to know what you do from the time you get up until lunchtime. That will tell me... By the way, with any agent that coaches with us, they can tell me what their goal is and what they did last year. And when I ask them, send me a copy of your morning schedule. I can tell you whether they're going to hit their goal or what needs to change in their goal. It's that simple, just looking at the morning routine, big difference maker.
BUSINESS PLAN PART FIVE:
All right, turn the page to part five. So let's talk about a September listing strategy. Why am I talking about a September listing strategy? Because most agents, most consumers put listing their home on the back burner in the month of September. It's natural. In fact, it usually starts the second to last week of August. For those of you that do a lot of lead generation, talking to a lot of potential sellers, you know they say "Ah, we're going to wait until we get back into school. We're going to wait till we figure out what the schools are doing." Now even more, it's been exacerbated because everyone's school situation is different and nobody knows what was going on until now.
So we heard more and more. "We got to figure out our school situation before we even consider doing X." And so guess what happens? That's an objection that a real estate agent hears. "Ah, I totally understand. Maybe you're in the same boat. Hey, I'm in your same boat. I understand it. I'm with you on that. I'll give you a call back mid September." So what I'm encouraging you to do as part of your plan is to look at where you could find listings in September while your competition is sleeping. Where you could find listings in September while your competition is focusing on buyers. Or where you could find listings in September, while your competition is still focused on getting into their new back to school routine, because you better believe, there's two things I love about the first part of September. Number one, I know for a fact, less agents are looking for listings because they themselves are trying to get back into the new routine.
Even prior to COVID, just a normal school year. The first couple of weeks of September, it's about figur