A Year-End Review Guide for Realtors: Setting Your Business Up for Success

Dec. 11

As the year comes to a close, it's prime time for you to reflect on the past year and gear up for the opportunities the new one holds. Just as every property has its unique features, your business journey requires a tailored approach. Here's a guide to conducting an end-of-year review that will empower you to learn from your achievements, determine what can be improved, and craft a strategic plan for the year ahead.

Step 1: Financial Analysis

Dive deeper into your income:

What was your gross & net income, and how many ends did you close this year?
Of the types of clients you represent, what is the count of each type? Example: How many deals did you close this year where you represented a seller?… What was the total commission for each type?
How many referrals did you receive this year? How many of those referrals did you close? What was the total commission earned on those referrals? What does this tell you about your relationship-building efforts?
How many repeat clients did you work with this year? What was the total commission earned from repeat clients? What does this tell you about your relationship-building efforts?
Examine where your clients came from (open houses, website leads, family/friends…)? How much commission was earned from each client origin?
What was your lead-to-close ratio, your listing-to-sale ratio, and your listing presentation-to-listing ratio?
What was your average sale price, your average commission, and average days on market?
Now compare these stats to your previous years in business. How do the years compare? Where are you seeing growth? Are there any interesting trends you notice?

Similarly, assess your expenses:

What was your total expenses for the year?
What are the totals for each expense category (marketing, advertising, client gifts, meals & entertainment…)? Are there areas for improvement/savings?

Put it all together:

What was your profit for the year?
Did you meet your income and expense goals for the year?
Reflect on why or why not and where improvements could be made.

Step 2: Time Assessment

Reflecting on how you've invested your time over the past year is pivotal for growth. Consider your daily routine as a starting point. How do you kick off your mornings? Is it a consistent ritual or a varied approach? Understanding your morning routine can set the tone for the rest of your day.

Delve into the specifics of your time management strategies. Have you employed time-blocking techniques for crucial tasks like social media preparation or email marketing? Assess the effectiveness of these strategies and their impact on your productivity and focus.

Equally important is recognizing areas that require improvement. Pinpoint any time drains or inefficiencies in your schedule. Is there a part of your day that consistently derails your focus? Identifying these areas sets the stage for improvement and optimization.

Step 3: Business Systems & Processes | Reflect on efficiency & areas for improvement.

Take a close look at the systems you have in place for your business. Have you implemented a system/process for each of these areas?

What's Been Working Well?

Reflect on each area of your business from how you handle leads to transaction management. Take a moment to celebrate your accomplishments.

Where Can Things Improve?

There is always going to be room for improvement, growth & learning. Consider areas that would benefit from improvement. Are there areas where new technology could save you time or improve a process? Is there room for better organization or analysis? Are there steps in your day-to-day that feel repetitive that you could streamline? Are there systems that could not only save you time but also improve the overall experience for your clients?

Your Next Steps for a More Efficient Year Ahead

Setting Improvement Goals: Pick a few areas to focus on and set goals for improvement. It could be something as specific as updating your CRM system or revamping your lead generation process.
Exploring Fresh Solutions: Don't be afraid to dive into new tools or methods. Sometimes, a new tech gadget or a different approach can work wonders.
Training and Implementation: Plan out how you'll learn and implement new changes. Whether it's a training session or seeking expert advice, investing in growth pays off.
Monitoring Progress: Keep an eye on how your changes are panning out. Regular checks ensure you're on track and can adjust if needed.

Step 4 | Business Tools Assessment

Taking time to review the tools integral to your daily business operations is a valuable practice. Reflect on the tools you rely on regularly; consider their impact, usability, and effectiveness within your workflow. Assess your:

Digital Calendar: Is your calendar keeping you organized & informed? Are you using all the features such as color coding, synchronization across devices, and notifications for efficient scheduling?
Email Platform: Are you creating folders, using filters and flags to manage your inbox?
Document Storage: Are you utilizing a cloud-based document storage platform? Are you creating color-coded organized folders?
Contact Management: Are you managing a concise and organized client list? Do you have somewhere to manage your follow-up?
Transaction Manager: Are you utilizing a transaction manager that helps you stay on top of transaction details, tasks, and deadlines?
Note-Taking: Are you utilizing a note-taking app that syncs across devices for quick jotting of property details, client interactions, and to-do lists?

Are all of these tools working for you? What is working? What needs improvement?

Step 5 | Goal Setting

Now that you have reviewed your business financials, time management, systems & processes, and business tools, you are ready to set some goals for next year! By setting clear and meaningful goals, you can chart your paths, stay motivated, and measure your progress along the way.

Start your journey by defining your vision. What do you aspire to achieve? Be specific and articulate your long-term goals. A well-defined vision fuels your motivation and provides a clear direction.

Once you have your overarching vision, break it down into smaller, manageable goals. These smaller goals act as stepping stones toward your larger vision, making the path less daunting and more achievable. This approach allows you to stay focused, track your progress more effectively, and experience a sense of accomplishment as you reach each milestone. Celebrating these small wins builds momentum and keeps your motivation high.

Apply the SMART framework to structure your sub-goals effectively.

S | Specific - Goals should be clear and specific, leaving no room for ambiguity. Define exactly what you want to accomplish and why it is important.
M | Measurable - Goals should have quantifiable criteria for tracking progress and determining when the goal has been achieved. Measuring your progress helps you stay focused and motivated.
A | Achievable - Goals should be attainable and realistic within your current resources and capabilities. They should challenge you, but still be feasible with effort and commitment.
R | Relevant - Goals should align with your overall objectives and be relevant to your personal or professional aspirations. Ensure that pursuing the goal is meaningful and contributes to your larger purpose.
T | Time-Bound - Goals should have a specific timeframe or deadline for completion. This adds a sense of urgency and helps you stay accountable for making consistent progress.

Not all goals are created equal, and trying to tackle too many at once can lead to feeling overwhelmed. Prioritize your goals based on their importance and alignment with your vision. Focus your energy and resources on a few key objectives to ensure you're making meaningful progress.

Develop a detailed action plan for each goal. Break down the steps required to achieve the goal, assign deadlines, and allocate necessary resources. This plan serves as your roadmap, guiding you through the necessary tasks and ensuring you stay on track.

Goal setting is not a one-time activity; it requires regular review and adaptation. Schedule periodic assessments of your goals to evaluate your progress and make necessary adjustments. This ongoing evaluation allows you to identify any roadblocks, adjust your strategies, and celebrate your successes along the way.

Embrace this reflective journey as a catalyst for growth in the coming year. Remember, every review is a chance for refinement, every lesson learned is a step toward mastery, and every strategic plan sets the stage for success. Here's to a new year filled with boundless opportunities and continued achievements in your real estate endeavors. Cheers to your success!