As in most worthwhile pursuits, careful preparation greatly enhances the probability of a successful end result. It is no different with your annual planning. Taking time to do the data research, being thorough and thinking strategically before actually planning the goals and results for next year will increase the likelihood of a triumphant year. As a matter of fact, the less focused you are on the specific results and goals during this part of the process, the more opportunities you will see. You'll create a framework for "outside the box" thinking and be able to design strategies for the next year that are congruent, cohesive and focused to leverage your marketing and efforts.

Your Data

Start with the gathering the data on your production for this year and your projections of where the final 1999 numbers will be, prorating as necessary. You'll want to know total gross production, total expenses, net income, number of units, % listings to buyers. These are the obvious and, hopefully, you are using a real estate software that tracks all of this for you. If not, consider something like PREP 4.0 as one of your most valuable investments for next year!

Next, expand your thinking and your research beyond the obvious. For each of your transactions, what was the source? What marketing generated the business? What was the average marketing cost per unit? Data like cost per listing taken for marketing and servicing, amount spent on your client base, average by the number of people in this sphere of influence, amount spent on your website and online marketing. List as many items as you can to fully understand the dynamics of your business.

The specifics will be different for each agent, depending on your niche markets (what, you say you don't have a niche market...ah, what an opportunity to start thinking about for 2000!). The more data you gather on what worked and what didn't and how much it cost you this year, the easier it will be to identify the areas where you money will be best spent in the coming year. Judi Wolfson, with RE/MAX in Philadelphia, PA shared with me in 1998, she saw she had spent $4000 on her internet advertising and it had generated over $100,000 in closed commissions, as compared to over $20,000 in more traditional marketing that didn't create that much income. A smart woman, seeing the opportunity, she significantly increased her budget in 1999 to $7000 and saw her income increase to over $216,000! Judi recently spoke at the NAR Convention sharing with agents the secrets to increasing your commissions on the Internet.

Market Data

As you digest the data, the new emerging trends and the areas that are already your strengths are the ones that you should be looking for. The agent who becomes the guru and expert in a niche first builds a base that is difficult for others to compete against. What are the geographical or psycho-graphic niches that you know better than anyone else? This data is key to identifying future trends and needs of you're your customers and clients. We all have heard Rita Mae Brown's definition of "Insanity: Doing the same thing, over and over, expecting different results." I know a lot of insane agents who have been successful in the past and are trying to work more harder and faster and they don't understand why they are getting less and less marketshare each year. And they are wearing themselves out! Thinking smarter in 2000 will take letting go of the tried and true and embracing new thinking and new ways of reaching clients.

So, identify the future markets that will be important (the baby-boomers needs for vacation and retirement homes, the internet savvy, first-time homebuyers, the home officed families, etc.). Identify novel, value-added services just for these markets. Brainstorm and identify habits and hot buttons, so you can market to them cost-effectively, perhaps partnering with another who is interested in the same market (insurance, CPA, Spa owner, etc). Unless you have all the business you need in one area, I recommend identifying 3 of these niches that you can focus consistent, repetitive messages to. It is a good use of your time, energy and money to do the market research to discover your best future markets. This is the research and development side of your business.

The Process

Once you have gathered all the data, spend time looking at the implications and opportunities. If you have spent 5% of your marketing budget on your client base and it is generating 50% of your business, what would happen to your business if you increased that spending to 20%? If you spent 60% of your budget on ads that just generated 20% of your business, is the exposure building name recognition or is it money that could be better spent in other ways? Did you spend money on one-time shots in a neighborhood or media that you are not doing regular follow up to (uh oh.. do I hear the sound of water flushing down the toilet?). There are LOTS of good ideas and ways others are marketing that works for them, but if it isn't a fit for you and your core market, it is a waste of your money.

The Who

Your personal development is an important part of what you are capable of building for the future. Just as a tall building needs a deep and strong foundation, for you to excel and be extraordinary, it requires health, energy, resources and support. What has worked or not worked in this area this year? Do you need to take care of some health issues, set some boundaries, upgrade your rolodex, or let go of some old stuff that sucks energy? Make a long list of the energy vampires in your life: those things you are tolerating that drain a bit of energy each time you think about them or are confronted by them.

Also, do an assessment of what you really enjoy doing in your business, what you are really good at. Life is too short to perfect your weaknesses! Leverage your strengths and you'll find things flow easier and there is less stress. Wouldn't that be nice?

The Plan

So, now, you are clear on what has worked and what hasn't, on what strengths you have, what niches will be hot for the future, and where you are positioned. In the next part of this series of articles, we'll chart the plan.

For your own personal detailed, step by step guide to your business planning, An Awesome Year 2000 Planning Guide is available at www.joeann.com/ayp.htm.

Published: December 8, 1999

Use of this article without permission is a violation of federal copyright laws.

Joeann Fossland GRI, LTG, MCC is a dynamic speaker and business coach. Creator of THE REAL ESTATE GAMETM, she provides coaching solutions enhance your effectiveness and life balance. You can subscribe to her free monthly newsletter, attend free monthly telephone seminars, and find out about classes delivered by email and personal coaching by visiting JoeAnn.com or e-mail her at .