Each of us is very clear on the importance of defining goals for our business activity. We all define goals, not only in reference to our real estate business but also in all other areas of life that affect us. It feels like a spontaneous, completely natural action. But no, even when defining the goals you want to achieve you should be very careful, especially when referring to your real estate business.
It will surely have happened in your life to define a new and exciting goal, which with the passage of time you have left aside, completely losing sight of the focus of the situation. This happens because as Jim Rohn, US entrepreneur, author and motivational speaker, has repeatedly explained, the more you postpone something, the less likely there will be to achieve your goal. In fact, every time an activity that in some way contributes to one’s goal is postponed, a little of that energy and will necessary to carry out the action itself is lost.
The solution to this problem lies precisely in the way in which the goals of one’s real estate business are defined.
The key is in setting goals, keeping a daily focus. Success in the real estate sector largely depends on different levels of activity and numbers. The goals you reach daily are what determine your monthly, quarterly and finally annual results. It is therefore not a question of defining an annual goal and crossing your fingers, it is instead a question of defining a goal and creating a daily plan to achieve it, without ever losing sight of focus or postponing activities.
Because it is important?
Many people set vague New Year goals, and especially rarely make plans for how they might achieve them. Without a real commitment to a plan or process, only a few actually manage to achieve their goals, perhaps even accidentally.
Tom Ferry, coach and motivational speaker, specializing in real estate, found in his research that only 40% of licensed real estate agents try to improve their business by setting goals. Nonetheless, only 8% try to actually reach them. These data are rather daunting, but with the right approach, you can define all the processes necessary to achieve the objectives.
How to create SMART goals to be successful in real estate
You’ve probably heard of SMART goals before, but if you’ve never used them before, here are some useful tips for turning your real estate business around.
The concept of SMART refers to objectives that are specific (Specific), measurable (Measurable), achievable (Attainable), realistic (Realistic), and with a well-defined deadline (Time-bound).
Using this methodology in reference to your real estate business and beyond, helps you to define a real, traceable goal with a precise deadline, to maintain focus and not get lost along the way.
A goal such as “increase the number of contacts in a given area” does not qualify to be a SMART goal, on the contrary “increase the number of contacts by 20% in a given area by the third quarter 2017” is exactly that of we’re talking about.
Specific real estate objectives
First of all, define exactly what you intend to achieve. This objective will then have to be broken down on a daily basis into activities necessary to achieve the result itself.
If your goal is to close a certain number of contracts in the year, define a series of daily activities to be carried out to achieve this goal, for example making a certain number of calls each day in order to generate a greater number of contacts, who will then become customers, and will convert into more opportunities to make sales.
Ultimately, being specific means that instead of saying “I would like to close more contracts this year” you should aim to “help 30 families sell / buy houses this year”.
Measurable real estate goals
Everything that is measured can be improved, so you need to understand how you can measure the performance of your daily activities. If you have a CRM that can keep track of the various activities that are registered in your agency, this will be really very simple, but you can also manually note in specific documents how many calls you make, how many appointments you have made or how many contracts you have closed.
Then find an exact number that allows you to define your goal accurately. You can use percentage values (increase of 20%) or point numbers (an increase of 1,000 units).
Only in this way will you be able to really track your progress.
Realistic and achievable real estate goals
There is a fine line between challenging and challenging goals, and impossible goals. The latter, in fact, can never be reached, despite numerous efforts. To avoid falling into this trap, we recommend that you take into account your past performance, your budget constraints and the resources at your disposal.
So make sure that the goals you are setting are reasonable and within your reach. Even if there is nothing wrong with wanting to reach the stars if you define a goal too high then you will not have the time, resources and experience to reach it and you will continuously miss the goal, ending up in a negative spiral of dissatisfaction. .
Once realistic objectives have been defined, it is also important to evaluate their actual reachability: what are the necessary steps to reach the goal? What do you need to do to be able to close 30 more contracts per year? How many contracts should you close each month? How many appointments should you make to close that number of contracts per month?
Real estate objectives with a well-defined maturity
This is probably one of the most critical components. If you’ve defined a truly measurable goal, it must also include time constraints. Don’t be too hard or too lenient with yourself, but above all make sure that these goals are consistent with your strategy.
Defining a time limit for your goals helps you to clearly identify all the steps necessary to achieve the goals by the deadline.
The 4 components of success
According to Tom Ferry, there are 4 fundamental components that underlie the definition of SMART real estate objectives: the approach, the plan, the process and the practice.
Starting with the right approach is the fundamental step in defining winning goals. Why are you setting these goals? What is your motivation for reaching them?
If your mind is not yet ready to start this process, all the subsequent steps count for very little. Your approach is the point of origin from which all subsequent actions will start and evolve. So your initial mindset will be the one that will set the background for your path to success.
Now that you’ve got into the right climate, you need to define a plan to work towards achieving your real estate agency’s goals. To do this, simply ask yourself what you need in order to get to the finish line: what activities are needed?
Once you’ve defined an action plan, it’s time to implement a process that allows you to execute it and put it into practice. It is therefore a question of defining routines, or activities to do daily, weekly or monthly: how many calls will you make every day to increase your number of contacts? How many appointments will you have to schedule each week?
All these activities will become part of a process that will describe the routine that will naturally lead you to success.
At this point, the best thing to do to be successful is to go, simply take the first step. Whatever the plans and processes you have set up and the associated routines to achieve them, simply start putting it all into practice.
Success is not something that you get overnight. Getting to the finish line requires the continued implementation of plans and processes.
Checks and verifications
All activities that allow you to take a step towards your goal must be checked and measured in order to evaluate your progress. These checks allow you to understand if you are on the right path and possibly what precautions you need to implement, so they should be done frequently in order to make the necessary changes in time and without precluding the possibility of achieving your goals.
Let’s move on to practice
Here are some SMART real estate goal ideas:
SMART lead generation goals:
– increase website visitors by 10% every month, until March 24, 2017;
– Increase LinkedIn followers by 250 by the end of 2017;
– increase the number of subscribers to the newsletter by 20% by 30 April 2017.
SMART marketing objectives:
– increase online presence with weekly blog updates by July 2017; update the social profiles and related content by March 2017;
– plan and attend industry conferences and workshops every week until February 2017 in order to expand the business network.
SMART objectives regarding the real estate team :
– involve the team in monthly meetings aimed at mutual and continuous learning by May 2017;
– weekly assess the resources necessary for better cohesion and interconnection of the group by June 2017.
The objectives that we have shown you above are just examples relating to some aspects of your real estate business, which you should think about in order to start a process of continuous and exponential growth.
These SMART real estate goals are the foundation on which to build your growth strategy. Write them down, create action plans around them, make any corrections or detours that allow you to stay on course towards your goal, and make sure you celebrate every milestone you reach.