Working the Occasional Deal
Over the years I have heard some great lines from salespeople that have stuck with me: one of the best is from a salesperson that said the worst thing a real estate could do was work the occasional deal. The meaning behind this statement is simple yet profound; salespeople who have not created a strategic plan for themselves will work only business that comes to them instead of the business they seek. Without strategy it is all too easy to create an income potential that is consistently in flux because one never knows how much the occasional deal is worth.
The occasional deal could be time consuming with a limited payday. Or, it can fill your day and keep you busy but when the end of the year comes you may find you've not made as much money as planned or, more importantly, as much as needed. I have seen many salespeople fall into this trap over the years; not without prior warning of the dangers of working without a plan and neglecting to gauge what each deal will bring in in terms of revenue to meet specific goals.
Strategically planning your business will give you so much more control of your destiny and overall success. Target yourself to the business you are seeking while constantly gauging where you are in your plan to ensure that you are meeting your goals and objectives.
The first step in developing a plan is to figure out what your niche market is. Who do you believe is this best client base to go after? Next, figure out how much you want to make by the end of the year. At the beginning of each year, Starboard agents must sign a goal sheet listing their expectations for the year, which I in turn sign off on as well. A detailed plan of how to go after your proposed client base is essential. Finally, create a simple flow sheet listing each client along with fee expectations; use this sheet every week to gauge results.
If you are only doing the occasional deal and become the occasional salesperson, you might survive and have a few good years but in a downturn you most certainly will be looking for something else to do.
Hans Hansson is President of Starboard TCN Worldwide Real Estate Services as well as a member of the Board of Directors for TCN Worldwide Real Estate. Hans has been an active broker for over 27 years in the San Francisco Bay Area and specializes in office leasing and investments. If you have any questions or comments please email firstname.lastname@example.org or call him at (415) 765-6897. You may also check out his website, http://www.commercialspacefinder.com/.