October is Business Planning Month here at IMT Coaching and we continue that focus with looking deeply into where our business is coming from and comparing it to the reality of where purchase opportunities come from and how much time you spend prospecting and maintaining the relationships.
Like everything else, you should really know your numbers. I break it down for you in the “Business Planning Workbook 2019” which is on the home page of the website (www.IMTCoaching.com). Using the model of the “Referral Triangle”, you really need to understand the mechanics of all your purchase opportunities and how they get leveraged out to the other areas of your triangle. For the purposes of this post, we are going to leave everything in the major groups. Realtor®/Builder – Other Professional – Database, you will break it down further into the actual people and activities in your personal plan later.
So we look at the three sides and determine:
- Who are the people or tasks involved?
- What percentage of my time do I commit to this area?
- What percentage of my budget does this consume?
- What percentage of my closed business does it represent?
- Do the efforts equal the outcomes?
The next questions have to deal with direction of focus. Where are we prospecting for opportunities and are they a realistic representation of the opportunities available? Generically speaking, each side of the “Referral Triangle” controls about an equal share of opportunity in the market. While newer people tend to rely heavily on the “Realtor/Builder” leg of the triangle to start, it’s less than a third of all purchase opportunities available. Many originators never allow their business models to mature and so they keep having repeat performances of their first years in the business.
This is a time of the year to look hard at what we are doing and understand that first we need to understand the triangle and then grow it! Building your business into a mature mortgage practice takes some time and some planning, but is really worth it in the long run, especially in light of all the new tools designed to replace the originator with an algorithm! You have to keep putting the person in the profession by constantly personally connecting with your people! You also need to be aware that your job is to grow your database and nurture it with value so you can benefit from the referrals and repeat opportunities it will generate.
Keeping your efforts and outcomes in balance is an important factor that even the best sometimes forget. While it is true that if you master any one area of the market you can achieve great results; you also open the door to losing your entire practice to someone or something that can work cheaper, faster, or just replace you! Remember, diversification and personal connection can’t be bought, it has to be earned!
Questions or comments: Mike@IMTcoaching.com