Fail to Plan, Plan to Fail

To understand the steps to successful business planning for the success of your company:

• Determine how much money you need to operate each month
• Trust Account – Do you need one?
• Commissions – Who will disburse checks; you, title company?
• Understand the 1099 and W-2 Forms (employee vs. subcontractor)
• Determine what commission structure you will offer
• Establish your expense budget, office space, tech requirements, business software, marketing, recruiting, staffing, insurance (E&O and G&L, cyber security), agent expenses, advertising/promotions, education, professional fees (accounting/consulting/legal), dues and memberships, travel/entertainment, salaries/wages, communications, franchise fees
• Establish revenue projections depending on your area of specialty; new homes, resale, land, commercial, etc., also number of agents, average income, number of sales and listings)
• Establish profit margins
• Determine which bookkeeping systems you will use (software or accounting firm)
• Transaction Management – Research and determine what platform you will use

Resources
Drexanne Evers International: Financial Standards (expenses by category) (sample Traditional Co. form)

Determining Employee Status – REALTOR® Magazine

20 Common-Law Factors – REALTOR® Magazine

7 Items Every Independent Contractor Agreement Should Have – REALTOR® Magazine

From REALTOR to Broker: determining the model – The American Genius

Field Guide to Franchises vs. Independent Firms – National Assn. of REALTORS®

Field Guide to Real Estate Office Policy Manuals – National Assn. of REALTORS®

U.S. Small Business Administration: Starting & Managing

U.S. Small Business Administration: Write Your Business Plan

Building a Business Plan that Gets Results – Real Estate Business Institute

IRS Form 1099-MISC & Independent Contractors