SampleBusinessPlan
following is a business plan submitted by Donald J. Gerberg, a Certified Residential Specialist in Sparta, New Jersey.
The Business Plan
For
2004
The year to set new standards of
success and achievement.
A few thoughts about 2003.
It was a huge transition year. I changed companies.
The move to Weichert was and is incredibly positive.
Yet, changing offices is a major event and as a result,
my production suffered.
As I begin to plan for 2004,
I feel renewed, refreshed and committed to outstanding results,
ready to demonstrate Weichert’s faith and belief in my abilities.
Goals versus Results2003
Goal
1. Income: $120, 840
2. GRI: 1,800
3. 30 revenue units
4. Average Sale Price: $265, 000
5. Average commission: $3,392
6. Average bonus: $636
7. “I” time: 20 hours per month
8.Appointments per month: 25
9. 4 newsletters
10. 4 postcards
11. 30 FORD calls per month
12.25 rounds of golf
13.Make Circle of Excellence
14.Make Distinguished Sales Club /
Result
1. $64,0002. 1,500
3. 15
4. $300,367
5. $3,578
6. $988
7. 14
8. 17.4
9. 6
10. 3
11.37
12.20
13.Achieved
14.Achieved
Income Collected in 1998 (January thru June)
Income 2003 Real Estate
Code / Address/Description / Source / MDC / Price / Listing Sold / Sales / Bonus / Other CB / Non CB / Mth. Total / GCIJanuary / LS / 273 West Shore / PC / 1 / 325,000 / 3,250 / 599 / 3,849 / 6,500
February / GRI / 600 / 600
March / LS / 677 West Mountain / PR / 1 / 255,000 / 3,825 / 885 / 7,650
GRI / 300 / 5,010
April / GRI / 300 / 300
May / LS / 81 Fox Hollow / PC / 1 / 555,000 / 6,912 / 1,630 / 13,875
LS / 50 Hillside / PC / 1 / 174,000 / 2,173 / 505 / 4,350
GRI / 300 / 11,520
June / LS / 4 Bonning Road / Bwbiz / 1 / 270,000 / 3,375 / 780 / 4,155 / 6,750
July / LS / 98 Springbrook / DM / 1 / 225,000 / 2,812 / 704 / 5,625
LS / 10 Cherry Tree / PD / 1 / 265,000 / 3,313 / 766 / 6,625
S / 3 Indian Trail / DM / 1 / 408,000 / 4,988 / 1,153 / 9,975
S / 27 East Shore / PC / 1 / 174,000 / 2,121 / 547 / 16,404 / 4,375
August / S / 13 Irving Place / PD / 1 / 186,250 / 2,315 / 536 / 2,851 / 4,656
Sept. / S / 555 West Shore / PC / 1 / 262,750 / 3,268 / 756 / 6,536
LS / 403 West Mountain / PC / 1 / 310,000 / 3,875 / 896 / 8,795 / 7,750
Nov. / LS / 36 Myrtle / PC / 1 / 260,000 / 2,993 / 1,198 / 6,370
LS / 84 Westgate / PC / 1 / 578,000 / 5,433 / 2,173 / 11,791 / 11,560
Totals / 14 / 4,248,000 / 37,961 / 12,692 / 13,128 / 0 / 1,500 / 65,281 / 102,597
Average Commission / 3,618.07 / 65,281
Average Bonus / 937.71
last update / 12/03 / Average Sale / 303,429
Appendix 2:Sample Business Plan
Income Comparison by Month…Closed Basis…include bpo’s, referral fees, rentals, listings sold sales
2001 / 2002 / 2003 / 2004Month / Units / $$ vol / Income / YTD / Units / $$ vol / Income / YTD / Units / $$ vol / Income / YTD / Units / $$ vol / Income / YTD
Jan / 0 / 200 / 2 / 189,000 / 3,268 / 1 / 325,000 / 3,849 / 2 / 504,000 / 8,266
Feb / 0 / 975 / 1 / 165,000 / 2,440 / 1 / 257,500 / 4,235
Mar / 3 / 420,000 / 7,446 / 8,621 / 2 / 493,150 / 6,638 / 12,346 / 1 / 255,000 / 4,710 / 8,559 / 2 / 757,000 / 22,099 / 34,600
Apr / 3 / 527,900 / 9,063 / 2 / 559,000 / 9,930 / 4 / 1,238,100 / 22,888
May / 1 / 160,000 / 2,917 / 1 / 278,000 / 4,115 / 2 / 729,000 / 11,220 / 2 / 527,500 / 8,755
Jun / 0 / 0 / 20,601 / 26,391 / 1 / 270,000 / 4,155 / 26,934 / 3.5 / 1,437,250 / 25,212 / 91,466
July / 4.5 / 889,400 / 13,408 / 3 / 744,780 / 16,255 / 4 / 1,072,000 / 16,404 / 2 / 654,000 / 8,626
Aug / 1 / 245,000 / 4,220 / 2 / 505,000 / 6,777 / 1 / 186,250 / 2,851
Sep / 3 / 692,700 / 10,509 / 48,738 / 2 / 507,000 / 7,213 / 56,636 / 2 / 572,750 / 8,795 / 51,984 / 100,092
Oct / 2 / 691,000 / 11,736 / 5 / 1,949,500 / 31,339 / 0 / 0 / 0
Nov / 0 / 0 / 2 / 838,000 / 11,797
Dec / 1 / 197,000 / 2,872 / 63,346 / 3 / 1,048,700 / 14,606 / 102,581 / 63,781 / 100,092
18.5 / 3,823,000 / 23 / 6,440,030 / 14 / 4,248,000 / 16.5 / 5,375,350
Upd / 7/04
Sources 2003 (regular commission – bonus not included)
Address / Buyer’s Guide / Floor Time / Boardwalk Business / Company Referrals / LS / S / Personal Direct / PersonalReferrals / Direct Mail / Past Customers / Personal Internet / Papoose Ad
373 WestShore Tr / 1.0 / 3,250
677 West Mountain / 1.0 / 3,825
81 Fox Hollow / 1.0 / 6,912
50 Hillside / 1.0 / 2,173
4 Bonning Road / 3,375 / 1.0
10 Cherry Tree Lane / 1.0 / 3,288
3 Indian Trail / 1.0 / 4,988
98 Springbrook / 1.0 / 2,812
27 East Shore / 1.0 / 2,170
13 Irving / 1.0 / 2,325
555 WestShore Tr / 1.0 / 3,268
403 West Mountain / 1.0 / 3,875
36 Myrtle / 2,993 / 1.0
84 Westgate / 1.0 / 5,433
Totals / 0 / 0 / 3,375 / 2,993 / 10.0 / 4.0 / 5,613 / 3,825 / 7,800 / 27,081 / 0 / 0 / 50,687
Percentages / 0.00% / 0.00% / 6.66% / 5.90% / 11.07% / 7.55% / 15.39% / 53.43% / 0.00% / 0.00%
Update / 7/28/03
Appendix 2:Sample Business Plan
Source Comparison
2003 / 2002 / 2001 / 2000 / 1999 / 1998 / 1997 / 1996 / 1995Listings Sold / 37,961 / 66,085 / 35,745 / 33,634 / 40,757 / 34,070 / 26,808 / 20,153 / 21,734
Sales / 12,692 / 16,758 / 15,284 / 42,447 / 22,826 / 27,688 / 30,341 / 19,004 / 34,054
Referrals / 4,752 / 3,015 / 731 / 1,087 / 3,662 / 604
Bonus / 13,128 / 15,436 / 9,428 / 10,605 / 16,227 / 7,700 / 4,000 / 5,350
Other / 1,500 / 919 / 470 / 3,585 / 8,128 / 2,382 / 501 / 450
65,281 / 103,031 / 61,376 / 87,156 / 86,410 / 78,317 / 64,618 / 48,670 / 56,842
Sources /
Company
50/50 Basis / Bwbiz / 3,375 / 6,061 / 7,988 / 16,352 / 14,235 / 9,946 / 10,791 / 15,054Sign / 4,597 / 1,858
Buyer’s Guide / 3,000 / 2,150 / 6,264
Referrals / 2,993 / 2,514 / 2,032 / 4,298 / 2,625 / 9,919 / 1,928
Internet / 2,557 / 3,999
FT / 3,912 / 3,300 / 1,438
Sources / Personal
50/50 Basis / Direct / 5,613 / 21,477 / 12,387 / 2,194 / 11,825 / 10,640 / 11,292 / 4,135 / 8,786
Referral / 3,825 / 14,343 / 1,406 / 21,190 / 11,348 / 14,215 / 14,059 / 4,072 / 10,767
Direct Mail / 7,800 / 3,600 / 4,288 / 20,440 / 13,483 / 12,971 / 5,018 / 2,875 / 6,405
Corporate / 569 / 3,296
CRS Referral / 537 / 2,902
Web site / 4,553 / 4,282 / 11,607
Past Clients / 27,081 / 25,113 / 16,198 / 6,087 / 14,689 / 3,290
Papoose Ad / 5,835 / 3,365
Listings Taken
2000 / 2001 / 2002 / 2003Date Taken / Address / Source / Date Taken / Address / Source / Date Taken / Address / Source / Date Taken / Address / Source
1 / 4-Jan / 12 Frizzell / PR / 4-Jan / 34 Lakeview / PD / 11-Jan / 304 WST / PR / 12-Jan / 81 Fox Hollow / PC
2 / 10-Jan / 56 Westbury / PD / 7-Jan / 38 Sagamore / PC / 29-Jan / 419 WST / PD / 13-Jan / 4 Bonning Rd / Bwbiz
3 / 11-May / 8 Kimble Ln / PD / 8-Jan / 24 Oak Tree / P/net / 28-Feb / 65 Hilltop / PR
4 / 15-May / 32 Sunset Lake / C/rf / 21-Mar / 83 Graphic / PC / 11-Mar / 79 Under R / PD / 31-Mar / 10 Cherry Tr / P/DM
5 / 30-May / 15 Springbrook / DM / 23-Mar / 190 WST / Ad/pap / 18-Mar / 2 Ravine / PD / 10-Apr / 98 Springbrook / PD
6 / 2-Jun / 31 Rainbow / PR / 16-Apr / 11 Heighwood / PD / 29-Apr / 11Hunters / PC / 29-Jun / 403 West Mtn / PC
7 / 29-Aug / 10 James / P/net / 25-Apr / 32 Beardsley / C/rf / 30-Apr / 294 SpringB / PC / 10-Aug / 62 Valley Vw / PC
8 / 21-Dec / 21 Maple Tree / PD / 31-May / 282 SpringB / DM / 20-May / 24 Milton / PC / 18-Aug / 36 Myrtle / C/rf
9 / 28-Dec / 7 Upper Glen L / PD / 1-Jun / 294 Spring / P/pc / 12-Jun / 69 Birch / C/rf / 27-Aug / 7 Plaza Dr* / PR
10 / 13-Jun / 18 Sagamore / pc / 17-Jun / 10 Ginger / PD / 27-Aug / 26 Carriage H / PC
11 / 21-Jun / 152 And-Spa / P/int / 9-Jul / 16 Columbus / DM / 27-Aug / 84 Westgate / PC
12 / 25-Jun / 74 Falcon / C/ft / 30-Jul / 273 WST / P/ad / 11-Sep / 555 WST (rt) / PC
13 / 19-Jul / 2 Dahn / PR / 7-Aug / 97 Skyline / PD / 15-Sep / 800 Glen / PR
14 / 28-Aug / 218 Tomahw / C/bw / 15-Oct / 2 Arrowhead / PC / 6-Oct / 27 East Shore* / PC
15 / 24-Oct / 273 WST / PC / 14-Oct / 42 West Shore / PR
16 / 24-Oct / 677 W. Mtn / PR
17 / 4-Nov / 50 Hillside / PC
18
19
20
18-Apr / 65 Hilltop / PR
8-May / 95 Sparta Ave / PR
5-Jun / 32 Hemlock / C/rf / 30-Aug / 248 Stanhope / DM
14-Mar / 3 Dahn Dr / DM / 4-Sep / 1 Morris S / C/rf
14-May / 150 Goodale Rd / PC / 4-Sep / 7 Morris S / C/rf
4-Oct / 5 Plumb Tree / PD / 15-Nov / 586 WST / PC / 21-May / 9 Rocky / PC / 4-Mar / 11 Mud Pond / P/rf
Activity Grid 2003
02 averages / 25.42 / 119.71 / 4.39 / 9.29 / 21.92 / 88.5 / 7.44 / 6 / 13.33Month / Total Days / Total Hrs / Ave hrs/day / Total “I” / Total “P” / Total “N” / Apts/sell / Apts/buy / FORD Calls
1 / Jan / 24.00 / 118.00 / 4.90 / 19.00 / 23.00 / 76.00 / 9.00 / 10.00 / 32.00
1 / Feb / 24.00 / 125.00 / 5.20 / 24.00 / 22.00 / 79.00 / 12.00 / 7.00 / 40.00
1 / Mar / 24.00 / 122.00 / 5.08 / 16.00 / 29.00 / 77.00 / 9.00 / 9.00 / 34.00
1 / Apr / 26.00 / 136.00 / 5.23 / 19.00 / 24.00 / 93.00 / 7.00 / 11.00 / 40.00
1 / May / 17.00 / 71.00 / 4.20 / 9.00 / 21.00 / 41.00 / 5.00 / 10.00 / 6.00
1 / Jun / 28.00 / 140.00 / 5.00 / 9.00 / 35.00 / 96.00 / 4.00 / 15.00 / 50.00
1 / Jul / 24.00 / 125.00 / 5.21 / 3.00 / 18.00 / 104.00 / 4.00 / 9.00 / 24.00
1 / Aug / 25.00 / 134.00 / 5.36 / 18.00 / 21.00 / 95.00 / 11.00 / 9.00 / 47.00
1 / Sept / 25.00 / 115.00 / 4.60 / 7.00 / 22.00 / 86.00 / 11.00 / 9.00 / 45.00
1 / Oct / 29.00 / 139.00 / 4.80 / 16.00 / 17.00 / 106.00 / 4.00 / 9.00 / 57.00
1 / Nov / 26.00 / 153.00 / 5.90 / 10.00 / 26.00 / 117.00 / 5.00 / 9.00 / 28.00
1 / Dec / 21.00 / 110.00 / 5.20 / 10.00 / 8.00 / 92.00 / 83.00 / 111.00 / 423.00
12 / Totals / 293.00 / 1,488.00 / 60.68 / 160.00 / 266.00 / 1,062.00 / 83.00 / 111.00 / 423.00
Averages / 24.42 / 124.00 / 5.06 / 13.33 / 22.17 / 88.50 / 6.92 / 9.25 / 35.25
Appendix 2 - Page 1
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Appendix 2:Sample Business Plan
Detailed Budget Plan for 2004
Budget / Item / Note / Budget / TotalsOperations / Phone-home / 50 x 12 / 600.00
Phone-cell / 60 x 12 / 720.00
Dues / GSMLS / 256.00
Dues / CRS / 140.00
Dues / Sussex Board / 300.00
Legal Defense / 450.00
Internet Access / 276.00
Day Timer / 100.00
Misc. / 500.00
$3,336.00
Marketing / Photography / 1,400.00
Paper / 200.00
Papoose Ad / 6 x 80 / 480.00
ADG / 2,000.00
Inspections / 300.00
Labels / 695.00
Overnight Mail / 100.00
Internet / DG.com / 500.00
“ / Realtor.com / 600.00
Assistant / 4,000.00
Postage / 1,500.00
Entertainment / 1,000.00
Surprises / 750.00
Coach / 2,500.00
Education / CRS course / 500.00
Misc. / 1,000.00 / $17,525.00
Reserves / 125 x 25 / 3,125.00
$3,125.00
Personal / 15,000.00
$15,000.00
Home / 2100 x 12 / 25,200.00
Utilities / 2,377.00
Surprises / 750.00 / $28,327.00
Car fund
/ 5,000.00$5,000.00
Mortgage
/ Pay off contrib. / 5,000.00$5,000.00
Retirement / IRA / 4,000.00
New England Life / 2,400.00 / $6,400.00
Sub Total
/ $83,713.00Taxes / $35,849.00
Totals
/ $119,590.00Appendix 2 – Page 1
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Appendix 2:Sample Business Plan
Break even $$ needed / $119,497.00Expenses / Additional Required / $15,000.00
Total / $134,497.00
Income
GRI / $1,500
Other / $4,800
R.U.’s / 25 x 3900 / $97,500
Bonus / 25 x 1400 / $35,000
Total / $138,000
Volume / 300,000 x 25 / $7,500.00
Income Page for 2004
2004 Activity Commitments
1.Increase “I-TIME” to 20 hours per month.
*Schedule three 2.5 hour sessions per month for the sole purpose of making FORD calls.
2.Increase number of appointments to 20 per month.
3.Do 14 mailings to basic list.
*Four “statistics” newsletters.
*Four information newsletters.
*Four postcards (also including postcard only list).
*Two “jumbo listing” postcards.
4.Increase Weichert agent-to-agent marketing to 50 agents 4 times per year (postcards and 1 FORD call per year)
5.Make 60 FORD calls per month.
6.Hold 8 Sunday Open Houses.
7.Raise average commission from 1.1% to 1.3%.
*”Ask and you shall receive”
8.On a monthly basis … formally review progress being made toward goals and objectives.
2004 Activity Commitments
9.Make Lori more effective:
*She must get her real estate license
*Raise her hours to 10 per week
*Ger her to become an effective prospector
10.Qualify for Weichert trip.
11.Attend CRS course in AC – June 2004
12.Play golf once a week from May 1 through Oct 1 … lowering handicap to 15.
13.Take a significant vacation (8 or more days) in Sept. or Oct. to Alaska or Paris or London.
14.Take a five day break to the Broadmoor.
Appendix 2 – Page 1
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