CURRENT BUSINESS & VISION ASSESSMENT AGENT Client:

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1 CURRENT BUSINESS & VISION ASSESSMENT AGENT Client: Having a future VISION for your business is essential to successfully growing your business. It starts with using growth factors to assess where your business is CURRENTLY. You can then use these same factors to determine where you want your business to be in the foreseeable future your VISION. Any Strategic Business Plan (SBP) you develop MUST address how you will bridge the gaps between your CURRENT and VISION business. Below is an assessment containing growth factors to help you complete your CURRENT evaluation and set your VISION. Where appropriate either fill in the detail, answer yes or no, or if not applicable, NA. EVALUATOR CURRENTLY VISION 1 Have a clear Mission Statement for your business 2 Have defined Values for the way your business will be conducted 3 Have a 3-5 Year Vision for your business 4 Follow a Strategic Business Plan (SBP) which incorporates Your Goals, Objectives, Strategies and Supporting Tactics 5 Your total income your income after broker split (any monthly desk fee or transaction fee is not associated with income, rather they are expenses and $ Use last full year should be shown within your Expense Plan/Budget) = a % income from your listings = % b % income from your buyer sales = % 6 Your total annual expenses = $ Use last full year a Fixed expenses = $ b Variable expenses = $ 7 Your total profit (5 minus 6) = Use last full year 8 Your total closed sales (see Evaluator Explanations) = Use last full year a % of sales which are repeat clients = % b % of sales which are referral clients = % 9 Your Profit-Per-Closed Sale (7 divided by 8) (see Evaluator Explanations) = $ 10 Your Business Model preference is to work with sellers (Seller Model) or to work with buyers (Buyer Model) generally reflected in the % income from Seller or Buyer listings (5a) and % from sales (5b) 11 Make business decisions based on the decision supports you a) accomplishing your Vision and b) the ROI (all financial cost associated with the decision divided by your profit-per-sale). States how many closings are required for the expense to pay for itself and provide you the required profit 12 Monthly review production results of listings taken, sales made, and listings and sales closed to your projections plan supporting your Income Goal 13 Monthly review expense results to your Expense Plan/Budget 14 Use a daily planner system to effectively manage your time 15 Manage your sales activities through establishing priorities with a focus on completing all high-value priorities first 16 Understand your value propositions what makes you competitive? 17 Know which of your lead generation sources produce the highest ROI (income received compared to the expense paid for the lead source) 18 Know which sales activities produce your clients 19 Purposely strive to consistently deliver a WOW client experience 20 Use a Contact Management Program to stay in touch with your past, current, and prospective clients Add Other Areas You Want to Set Within Your Vision Continued ONLY if you have, or plan to have, SUPPORT STAFF and/or LEAD A TEAM

2 CURRENT BUSINESS & VISION ASSESSMENT AGENT Client: Complete ONLY if you have, or plan to have, SUPPORT STAFF and/or LEAD A SALES TEAM 21 Your total support staff / agents (list licensed agents under agents (exclude yourself), anyone not-licensed as staff) = Use current # a # staff = # b # agents = # 22 Your staff / agents understand your Mission? 23 Your staff / agents understand your Values? 24 Your staff / agents understand your Vision and how what they do fits into your Vision? 25 Your staff / agents understand your SBP? 26 Follow a recruiting plan to hire qualified staff and agents supporting your SBP staff / agent needs? 27 Have a thorough staff / agent development program? a Coaching? b Mentoring? 28 Have a written policy manual detailing specifies of how you want your business to be conducted by your staff / agents? 29 Your staff / agents have written job descriptions stating expected job duties? 30 Your sales processes are documented so your staff / agents can follow? a. List the areas from your Current Business and Vision Assessment you want to focus on. b. Under Currently, state where you are now, and under Vision, where you want to be. c. Define what you want to accomplish in the upcoming year Year 1 in order to advance towards your Vision. d. In subsequent Year-2 and Year-3, you ll need to update where you are currently, and what you want to accomplish during the respective year in order to advance towards your Vision. e. If your Vision changes, make the appropriate changes under Vision. VISION FOCUS FOR YEAR (1) (2) (3) (4) (5) AREA to FOCUS ON CURRENTLY VISION YEAR (1) (2) (3) (4) (5)

3 LISTING & SALES PROJECTIONS WORKSHEET LISTING & SALES PROJECTIONS DETAIL Subject CURRENT 3-YEAR VISION YEAR (1) (2) (3) PLAN A INCOME 1 YOUR REAL ESTATE INCOME GOAL - after broker split Annual Income Goal $45,000 $150,000 $70,000 2 % OF INCOME FROM CLOSED LISTINGS ONLY Closed Listing Income Goal as a % 33% 70% 50% 3 % OF INCOME GOAL FROM CLOSED SALES ONLY Closed Sales Income Goal as a % 67% 30% 50% 4 CLOSED LISTING INCOME GOAL in $$$ (A1 x A2) Closed Listing Income Goal $ 14,850 $105,000 $35,000 5 CLOSED PROEPRTY SALES INCOME GOAL in $$$ (A1 x A3) Closed Property Sales Income Goal $ 30,150 $45,000 $35,000 B COMMISSION 1 GROSS BROKERAGE COMMISSION % CHARGED TO LIST OR SELL A PROPERTY Gross Commission % 6% 6% 6% 2 LISTING % RETAINED OF YOUR GROSS COMMISSION (B1) Listing Commission % 50% 50% 50% 3 SALES % RETAINED OF YOUR GROSS COMMISSION (B1) Sales Commission % 50% 50% 50% 4 LISTING COMMISSION % (B2) RETAINED AFTER LISTING BROKER SPLIT (sliding scale needs to be averaged) Brokerage Retained Listing Commission % 75% 75% 75% 5 CLOSED PROPERTY SALES COMMISSION % (B3) RETAINED AFTER SELLING BROKER SPLIT (sliding scale needs to be averaged) Brokerage Retained Sales Commission % 75% 75% 75% 6 (COMPLETE C1 FIRST) AVERAGE LISTING COMMISSION in $$$ (C1 x B1 x B2 x B4) Brokerage Avg. Listing Commission $3,938 $5,063 $4,500 7 (COMPLETE D1 FIRST) AVERAGE PROPERTY SALES COMMISSION in $$$ (D1 x B1 x B3 x B5) Brokerage Avg. Sales Commission $3,780 $3,938 $3,825 C LISTINGS TAKEN, SOLD, CLOSED 1 AVERAGE CLOSED LISTING PRICE (listing side ONLY) Avg. Closed Listing Price $ 175,000 $ 225,000 $ 200,000 2 AVERAGE % DIFFERENCE BETWEEN LAST LIST PRICE & CLOSED LIST PRICE - LISTING DISCOUNT % Listing Discount % 95% 95% 95% 3 AVERAGE LISTING PRICE (C1 / C2) Avg. Brokerage Listing Price $184,300 $236,900 $210,600 4 NUMBER CLOSED LISTINGS UNITS REQUIRED TO ACHIEVE CLOSED LISTING INCOME GOAL (A4 / B6) Required Closed Listings Units % LISTINGS UNITS SOLD THAT CLOSE - LISTING CLOSE RATE (not sell) Listing Close Rate % 90% 90% 90% 6 NUMBER OF LISTING UNITS REQUIRED TO SELL (sold, not closed) (C4 / C5) Required Sold Listings % LISTING UNITS THAT SELL/SOLD - LISTING SOLD RATE (not close) Listing Sales Rate % 90% 90% 90% 8 NUMBER OF LISTING UNITS REQUIRED (C6 / C7) Required Listing Units AVERAGE NUMBER OF LISTING PRESENTATIONS TO GET 1 LISTING Listing Presentation to Listing Ratio TOTAL LISTING PRESENTATIONS REQUIRED (C8 x C9) Total Required Listing Presentations D PROPERTY SOLD, CLOSED 1 AVERAGE CLOSED PRICE of ALL SOLD PROPERTIES (sale side ONLY) Avg. Closed Sale Price $ 168,000 $ 175,000 $ 170,000 2 NUMBER OF CLOSED PROPERTIES REQUIRED TO ACHIEVE YOUR PROPERTY SALES INCOME GOAL (A5 / B7) Required Closed Property Sales % OF PROPERTY SALES THAT CLOSE Sales Close Rate % 90% 90% 90% 4 NUMBER OF PROPERTIES REQUIRED TO SELL (D2 / D3) Required Property Sales AVERAGE NUMBER OF PROPERTY SHOWN TO SELL 1 PROPERTY Properties Shown to Sale PROPERTY SHOWINGS GOAL (D4 x D5) Properties Shown Goal CURRENT RESULTS: $45,000 Income LISTING Income: $14,850 income from listing 6 average $184,300 to sell 5 and close average $175,000 SELLING Income: $30,150 income from selling 9 properties and close average $168,000 3-YEAR VISION: $150,000 Income LISTING Income: $105,000 income from listing 27 average $236,900 to sell 24 and close average $225,000 SELLING Income: $45,000 income from selling 13 properties and close average $175,000 1-YEAR PLAN: $70,000 Income LISTING Income: $35,000 income from listing 10 aversge $210,600 to sell 9 and close average $200,000 SELLING Income: $35,000 income from selling 11 properties and close average $170,000

4 201X EXPENSE PLAN Name: John Jones Covers: 01/01/XX -12/31/XX EXPENSES PERSONAL REAL ESTATE Expense Monthly $ Annual $ Expense Monthly $ Annual $ Rent or Mortgage $ - $ - License $ - $ - Automobile Payment(s) $ - $ - MLS Dues and Fees $ - $ - Home Insurance $ - $ - Business Cards $ - $ - Food $ - $ - Phone or Cell Phone $ - $ - Electric $ - $ - Office Rent/Desk Fee $ - $ - Telephone $ - $ - Auto Expense $ - $ - Gas $ - $ - Computer/Internet $ - $ - Water/Sewer/Trash $ - $ - Marketing - Mailers $ - $ - Other Utilities $ - $ - Marketing - Web Site $ - $ - Auto Insurance $ - $ - Marketing - Print $ - $ - TV $ - $ - Marketing - Brochures $ - $ - Internet/DSL $ - $ - Marketing - Photography $ - $ - Health Insurance $ - $ - Marketing - Other $ - $ - Medical Expense $ - $ - Marketing - Other $ - $ - Children school expense $ - $ - Organization Dues $ - $ - Clothing $ - $ - Office Supplies $ - $ - Entertainment $ - $ - Copy Expenses $ - $ - Education Expenses $ - $ - Client Entertainment/Gifts $ - $ - TOTALS $ - $ - TOTALS $ - $ - PROFIT $ - $ - TOTAL PERSONAL + BUSINESS $ - $ - With PROFIT $ - $ - EXPECTED TAX BRACKET 25% $ - TOTAL EXPENSE PLAN $ - $ -

5 20 SALES PLAN Name: GOAL: OBJECTIVE: OBJECTIVE: STRATEGY State Strategy Here TACTICS OWNER COMPLETE BY MARKETING MATERIALS NEEDED STRATEGY State Strategy Here TACTICS OWNER COMPLETE BY MARKETING MATERIALS NEEDED STRATEGY State Strategy Here TACTICS OWNER COMPLETE BY MARKETING MATERIALS NEEDED STRATEGY State Strategy Here TACTICS OWNER COMPLETE BY MARKETING MATERIALS NEEDED

6 CURRENT BUSINESS & VISION ASSESSMENT EXPLANATION 01. Have a clear Mission Statement for your business A Mission Statement answers the most important question for any business: Why does the business exists. Not from the owner s stand point of generating a profit, rather from the client s stand point what our clients can expect from working with your company. It also is a guide when answering any business decision, does a yes to this decision, support my company mission? A MS is a concise statement and does not include how the company will deliver their mission. A good example is Southwest Airlines: To provide the highest quality of Customer Service delivered with a sense of warmth, friendliness, individual pride, and Company Spirit. Another, Google: To organize the world s information and make it universally accessible and useful. Note that these specify what their customers can expect from them, without the statement specifying how the business will deliver their Mission to their customers. 02. Have defined Values for your business Your company values represent who you are as a person, they represent your heart and character and make a culture statement to your clients, staff and agents, of the ethics and morals of how you expect your business to be conducted. Examples include: Honesty, Integrity, Loyalty, Professionalism, Respect, etc. Statements beyond reproach of what is important to you. 03. Have a defined Vision for your business Your Vision is a realistic dream of where you want your future business to be, within a reasonable period of time, generally three (3) to five (5) years. It gives you the direction to grow your business and serves you to help you make decisions which support moving in that direction. 04. Follow a Strategic Business Plan (SBP) To follow a SBP requires you first have a SBP. Your SBP puts the actions in place of how you will achieve your Vision. It defines the how you will bridge the gaps between where your business is currently and where your Vision for your future business. Because Vision involves 3 5 years, the focus of any SBP is one year at a time. Year-1 advances you towards your Vision, Year-2 further advances you towards your Vision, etc. A SBP includes goals, objectives, strategies, and tactics. Developing a SBP is only the first step, the second being following your plan, and the third step, reviewing the results from implementing your plan and if necessary, making changes to make it more effective in producing results. 05. Your total income Your total income is after broker split and before profit and will serve as your Vision Income Goal. a. % Income from listings / b. % Income from sales Understanding what % of your income is from your closed listings and the % from your closed sales will help you understand your current Business Model, see 10., and will aid you in determining the Production Projections necessary to achieve your income goal. 06. Your annual expenses Not understanding the expense associated with owning a business, or even if known, managing those expenses is a primary reason for business failure. Income Expense also allows you to understand how much profit you make. By planning your annual expenses and committing them to writing in an Expense Plan/Budget you can make informed financial decisions which support you achieving your desired profit.

7 CURRENT BUSINESS & VISION ASSESSMENT EXPLANATION a. fixed / b. variable Understanding which of your expenses are fixed (uncontrollable by you) and which are variable (controllable by you), are essential to help you manage your Expense Plan/Budget. Be cautious in committing to contracts as these are generally fixed expenses. 07. Your annual profit Once you understand your expenses you can determine how much profit you want to make. No profit, no business. Profit is what sustains your business. With understanding your total clients (9), and the profit you made (7) or goal to make (Vision), you can calculate your Profit-Per-Closed Unit, see 10. This is valuable to you when considering any financial decision by being able to determine how many closed units are required to pay for the expense AND to produce the return-oninvestment supporting your desired profit margin. 08. Your total closed sales When counting total closed sales and you sell your own listing, count 2 closed sales, 1 for the listing side and 1 for the sale side. This also applies to the sales volume. This will allow you to be accurate when average listing and sale prices, and profit-per-sale. a. Your % repeat sales In general, understanding where what sources your clients came from is important in order to make informed decisions of where to invest both your finances and your time to get your highest return on your financial and time investments. Every agent wants to increase their repeat business. To do so requires a plan and any plan begins with understanding where you are currently. b. Your % referral sales Referrals can come from a variety of sources, clients, friends, family, Realtor.com, etc. Like repeat sales, understanding where your referrals are coming from, and the quality of referrals (do they turn into a closing) is essential in growing your business. 09. Your Profit-Per-Closed Sale For your information. Also serves as an evaluator for making financial decisions in respect to the number of closed sales required to pay for an expense and produce the desired return-oninvestment. Example: if PPCS is $175 and you are considering a $1750 marketing expense for internet marketing, you d need to produce an extra 10 closing from that expense in order to pay for itself and generate your desired profit. 10. Your Business Model While occasionally an agent will have 50% seller clients and 50% buyer clients, the tendency is to prefer to work more with sellers or prefer to work more with buyers. While your current Business Model may be one way, i.e., Buyer Model, you may prefer it otherwise in respect to your Vision. 11. You make business decisions in support of your SBP and ROI Yes, or No. Yes, puts you in control of your business. 12. You review production results to projections monthly. Reviewing actual production results in comparison to your planned production supporting your Income Goal is essential to your business success. 13. You review expenses to expense budget monthly. Reviewing actual expenses to your Expense Budget supports you achieving your Profit Goal.

8 CURRENT BUSINESS & VISION ASSESSMENT EXPLANATION 14. You use a daily planner system to manage time Time is the ONLY common denominator for all agents. Whether you use an electronic or a paper planning system, having a system to better manage your time helps you control time rather than it controlling you. 15. You manage your day via priorities Sales activities are defined as A activities (high value supports producing income), B activities (support completing A), and C activities (all others, including time wasters). To maximize your success requires you to spend as much of your time completing A activities and as little time completing C activities. Placing the A activities as the top of your daily priority list helps you focus on completing A s, and less time completing C s. 16. You understand your Value Propositions A value proposition is a service or feature you offer your prospects that make you attractive to prospective clients. Your value propositions serve as sales differentiators when in a competitive situation. An example can be your years of sales experience. But, the number of years does not offer value to your prospects, it s the results from those years, i.e., you advanced negotiation skills. These differentiators can assist you in achieving your business goals. 17. You know which lead sources produce results It s not the quantity of leads you receive, it s the quality of the leads. See 10 and You know which sales activities produce clients Your SBP includes sales strategies (targets) and activities (tactics) you will complete to achieve your goals. As you implement your plan, and evaluate results, you may find some tactics produce more results than others and decide to make changes that further enhance sales results. 19. You strive to deliver a WOW customer experience To increase repeat and referral business deliver client service that exceeds their expectations. 20. You use a contact management system to stay in touch with clients and prospects Supporting both Repeat and Referral growth is staying in contact with clients and referral resources. Having a CMS is essential to be sure you manage the when, where, and how of staying in touch with clients and referral sources. Complete If You Have, or Plan to Have, Staff or a Team 21. Your total support staff / agents / # staff / # agents For Vision planning. 22. Your staff / agents understand your mission Those supporting you being successful need to understand your Mission to both support it and feel part of your team. This will also help reduce turnover. 23. Your staff / agents understand your values Those supporting you being successful, and representing you to others, must understand and support your Values. Incorporating your values into your recruiting and hiring efforts will also help you reduce turnover. 24. Your staff / agents understand your Vision

9 CURRENT BUSINESS & VISION ASSESSMENT EXPLANATION Those supporting you being successful need to understand your Vision to feel part of your team. This will also help enhance your recruiting efforts as your able to show the bigger picture of your business over than just where it is today. 25. Your staff / agents understand your SBP Those supporting you being successful need to understand you have a plan to achieve your Vision. This will also help enhance your recruiting efforts as you are able to show how you will achieve your Vision. 26. You follow a Recruiting Plan Recruiting staff and agents to be part of your team requires a well thought out plan; a plan that qualifies their skills to compete their job, their attitude and personality fit with you and others on your team, and that their Values align with yours. 27. You have a staff / agent Development Plan / coaching / mentoring Retaining good people requires they have an opportunity to grow. Giving your staff and agents a development plan will help you retain good people while supporting you achieving your Vision. 28. You have a written Policy Manual A written policy manual provides everyone a resource to follow and understand your expectations. 29. Your staff / agents have written job descriptions A written job description for each position allows your staff and agents to understand their role and your expectations of them in performing their daily job duties. A job description also serves as a recruiting tool, a job performance evaluation tool, and a skill development tool. Job descriptions are part of your Written Policy Manual. 30. You have documented listing and sales processes Documented listing and sales processes allow for consistency in all aspects of your staff processing, and your agents roles associated with listing and selling property.