Every commercial property office has its unique commission challenges and listing opportunities; and that is in any property market and economic circumstances. To help with this a wise property sales agent will set some best practice guidelines and rules to keep the agency office and its staff on track to clearly established targets. A business plan for the commercial property office is essential to the process.
Whilst the buyers and sellers of property will undergo change and pressure, they still need to do property sales and rentals. It is the agency momentum and activity to capture that activity that is critical in the performance of a commercial real estate office.
The agencies that must close their doors when the market is poor predictably have no significant marketing and prospecting models. They simply take listing opportunity when it walks in the door. When the market slows and changes, that walk in business does not occur. This property office has no mechanism to grow market share when times are tough.
Many agencies operate with a code of practice or best practice business model to enable them to serve both the clients and the customers professionally. Some real estate franchising groups and marketing groups also offer this level of practice professionalism in their business model to which the agency can operate within.
You can structure your own code of practice and set some rules that will help your business down the path to success. Your business plan should involve and include the following criteria:
- business planning for the next 5 years with a great focus on the next 12 months
- income, and expense targets based on a staged growth model
- listing targets for each month of the year
- marketing strategies for the office and for the listings you generate
- internet and website initiatives plus a website that is optimized for your market and location
- database tools and strategies to grow your market intelligence and future opportunities
- a clearly defined target market from which you will attract listings for the office
- staff growth plans to implement as changes in the market occur
- performance guidelines and job specifications to ensure quality work targets
- ethical standards for sales, and property management staff
- documentation systems and rules to implement and track contracts and associated forms or processes in sales, rentals, or property management
- staff goals, objectives, targets, and processes that can be measured by KPI
- privacy and confidential business processes that apply with members of the public and clients
- quality assurance procedures that keep the office functioning within guidelines
- strategic plans that give stability and growth a priority in your business plan
- occupational health and safety rules that protect your staff and clients in situations of property activity
- financial targets and commission structures that reward good people and performing sales staff
These elements can and should be implemented in your real estate business plan. Once the plan is set it becomes your roadmap to a better and more stable office in any real estate market. This means better commissions and listings in any property market. Survive and thrive is a fundamental rule in real estate best practice, and this is in any market and at any time.