The 10 biggest business-planning mistakes

Knowing what not to do will help you define your goals and achieve them.

by Joeann Fossland   As 2003 nears, the 3% of agents who operate with a written business plan have an edge. If you are part of that elite group, you are probably reaping the rewards that come from knowing what you want, where you want to go, and how you are going to get there. Vincent Van Gogh observed, "Great things are not done by impulse, but by a series of small things brought together."

If you’ve been planless but are ready to face the new year with a resolve to raise your standard of greatness, spending time creating the plan for 2003 will be the best time you spend all month. I am not, however, talking about developing a linear plan that just looks at your numbers. You are more than your numbers, and the plans that tend to empower and guide all year are ones that include your life plan as well as your business numbers.

Author David Kekich says, "An hour of effective, precise, hard, disciplined, and integrated thinking can be worth a month of hard work. Thinking is the very essence of, and the most difficult thing to do in, business and in life. Empire builders spend hour after hour on mental work–while others party. If you’re not consciously aware of putting forth the effort to exert self-guided integrated thinking ... if you don’t act beyond your feelings and you take the path of least resistance, then you’re giving in to laziness and no longer control your life."

So let’s take a look at some of the pitfalls that could trip you up on the way. Here are the 10 biggest mistakes when creating a yearly plan that I see with clients in my coaching practice.

Not planning time to think and create a plan

To fully design and create your plan, I recommend at least a full day. Plan a retreat with your team, or go away for a weekend without distractions. Working on it piecemeal when the time shows up is a sure way to fail. Block out an appointment with yourself now to work on this. The time will not just show up–you must carve it out.

Failing to gather all the data from last year

Even when you have a car full of gas, know your destination, and have plenty of money and supplies, if you don’t know where you are starting from, you will struggle to arrive where and when you want. You have to know where you are to know what road to take.

In pulling together the information you need, include more than just the total production and number of units. What was the source of each transaction? What was the cost of each listing? What was your net profit? What was your close ratio on listing appointments? Each piece of information will inform you about where your strengths are and what untapped business is waiting for you.

Incrementally increasing your goal based on last year’s results

Usually an agent will set yearly goals by choosing a number somewhat above last year’s and then using some formula to determine monthly and weekly actions. This is rarely exciting and energizing and usually results in having to work more, work harder, or work faster. Playing it safe so as not to "miss" the goal rarely leads to creative and inventive actions. It will result in more of the same with more work.

Not factoring in reserve

Do not fail to take into consideration that crises will occur and stuff will happen. By figuring what needs to be produced to hit the goal and not allowing for reserve, you will fall short and feel your plan is not going to work or be frantically running on adrenaline at the last possible moment to pull it off. Always assume you need 20%-30% more.

Not knowing the why

This really should be number one. Why do you want to produce what you want to produce next year? If you attained your financial goal or the number of units you want to close, what would that give you? If you attained that financial goal, why would that be important? Are you working to accumulate more stuff or to have a certain quality of life that is joyful?

The why is the key to your motivation and your willingness to be in action. Keep asking yourself, "Why do I want this?" or "What will getting this give me?" until you get to the bottom of what is really important to you. These reasons are your values. Miracles happen when you know your values and your work reflects and expresses them.

Not planning the who

Speaking of the why–there is also the who. You are a human being, not a human doing. A tall building requires a deep and strong foundation. Your personal foundation must be deep and strong to enable you to soar with ease. Does your plan for the year include time for yourself, your growth, your family, and your interests?

The first piece of your planning should be how much time off you will take next year. The second piece is to design a perfect workweek. If you did nothing else this year but worked on your own personal development, I know you would probably have the best year ever.

Not leveraging the new opportunities

What gave you success last year is not the key to your future success. In fact, if you aren’t radically shifting the way you deliver your services and reach people, you may not be in business much longer. What new ways of marketing do you need to employ? How can you partner with others who may be interested in the same target markets and may help create a win-win? What new market segments or niches are, as yet, unserved? Whom do you have an affinity with that is a perfect new niche?

Not designing strategies to optimize what you already have

Are you leveraging your best clients and customers into your referral engine? Have you thought about how you can increase their loyalty and also increase the value you provide them? The cost of finding new prospects is much higher than creating more business from folks who already know and love you. Get creative here! What other strengths and attributes do you have that aren’t being optimized?

Not making it a big enough stretch to cause real excitement

Thinking small rarely inspires. It’s those impossible dreams, realized, that are able to stimulate our thinking and actions. When goals become a game to play, rather than a measure of whether we are good or bad, we can let go of the attachment to a result and just find innovative and fun ways of expressing our commitment to excellently serving our clients.

The money flows and we experience greater satisfaction when we love what we do and have a big enough game to play. Boredom or striving for the ordinary results in playing too small a game.

Not creating a structure for support

Even with a good plan, not having a way to stay focused will trip you up. Do you have a partner to keep you on track? A coach who can see the big picture? Most folks find, when left to their own accountability systems, they are prone to sell out on themselves. A coach actually knows you can do more than you think and reminds you of who you really are, instead of buying into the excuses that seem reasonable. Accountability and focus are both critical for the implementation of your plan.

Now is the time to create or fine-tune your 2003 plan. Take a look through these 10 mistakes and then consider a plan that will enable you to envision the accomplishments you’ll be proud of when Dec. 31, 2003, rolls around. And be sure you make regular course corrections as the year unfolds to stay on track. May 2003 be your most profitable year ever.

Joeann Fossland, GRI, LTG is a Master Certified Coach, national speaker, and trainer who works with highly motivated people who want to excel in business while having a life they love. Joeann created The Real Estate Game™, a daily motivational accountability call that is played in a game format for four weeks. She also writes a monthly newsletter and hosts free teleconference calls. For information about Joeann’s presentations, coaching, and consulting services, please contact the Frog Pond Group at 800/704-3764 or e-mail Susie@frogpondgroup.com.

Illustration © Artville, photo © Digital Vision.

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