3. How to Set Your Business Targets
Today is the beginning of your new life as an HIA® and it starts with you setting out to define your ideal business success. We want you to think big and tell us what you want to consistently take home as your gross annual income. Once you have that number in mind, navigate to the HIA® Goal Calculator, and begin filling in the blanks. You pick the numbers; we tell you your target!
Course outline: 2 steps below (includes 1 video & 1 download)
Estimated time to complete: 15 minutes
3-1 How to Set Your Target Community
The first step in this process is to ask yourself, how much gross income do you want to make each year? $50,000? $75,000? $150,000? Once you have that number in your head go through the following steps:
- Navigate to the Goals and Progress Section
Click on HIA® Income Calculator Tile and fill out the following 9 questions:
Step #1 - Enter Your Target Annual Income: The gross amount of money that you want to make each and every year.
Step #2 - Enter Your Average CMA Value of your clients: This value represents the average home value of your existing clients. If you are just starting out or don’t have this information right now, feel free to pick an average number that you best believe represents your real estate business.
Step #3 - Enter the average Tenure (Number of Years in Home) of Your Clients: This number is the average number of years, which your clients will live in their home. For example, from 2003 to 2014, the average tenure of sellers according to NAR was 7.3 years. Source: 2014 Profile of Home Buyers and Sellers Presentation, Oct 30, 2014, Jessica Lautz.
Step #4 - Enter Your Take of the Commission Split on the first $100,000: We understand that commission can be broken into two components, a percentage on the initial $100,000 and a percentage on the balance. In this cell, enter your average percent commission on the initial $100,000.
Step #5 - Enter Your Take of the Commission Split on the Balance: How much you expect to earn on average.
Step #6 - Enter the Percent of Sellers Also Buy: Enter the Percent of Sellers (Listings) that upon sale, will also use your services to buy. Note that some people may move out of your operating region upon selling their home.
Step #7 - Enter Your Community Retention Rate: This percentage reflected the number of clients that you believe will remain with you each year. If you are offering excellent service, this number should remain high.
Step #8 - Enter the Number of Unique Referrals, outside of your Clients: How many unique referrals will you get that come from outside of your current client base? Enter this number here. The more unique outside referrals you receive; the fewer number of ongoing clients you require. Caution: Focusing solely on referral clients is lucrative, however this type of business can lead to both very busy and very slow times in your business.
Step #9 - Enter the Percent of Referrals, which Result in a Closed Side: Of the above outside referrals, what percent of them will close? Are your referrals typically hot or are they typically cold?
Upon filling out the nine questions, the calculator will determine your target community and your target number of deals.
- Push "Save Results" and you will have set your business targets just like that!
- You will notice these target numbers now populated throughout your Dashboard!
3-2 How to Set Your Goal Reward
Once you have your target income and community picked, it’s time to give yourself some fuel! See how below:
- Staying in the Goals and Progress Section, Click on "My Goals"
- Put a picture of what you will get for yourself if you successfully complete your goal!
- Set a timeline on how long you give yourself to hit that goal.
- Let the tile do the rest!
3-3 How to set SMART Goals
Outside of income, you can and should begin to set goals. As we saw in our first section of this chapter, goals can be extremely powerful if you a) write them down and b) make them within a specific framework.
You can write goals for any facet of your life: family, health, wealth, spiritual, individual. Each category is extremely important to cover and best of all, you can use the same framework for each. When writing your goals use the following template:
A few questions to ask yourself while you are writing down your goals:
- Is this really something I want, or is it something someone else wants for me?
- Is my goal clear and specific enough that I will know when it has been achieved?
- Is my goal measureable?
- Is my goal realistic and achievable?
- Is this goal in line with my core values?
- What is your motivation for this goal? WHY is it important to you?