What’s your goal for 2020?
[Buzzer sound.] WRONG!
Not to be harsh, but if you immediately started talking, you likely answered too quickly.
Let me explain: On today’s #TomFerryShow, I want to help you build your 2020 business plan and set your goals… and I want to do it smartly.
Too many people I encounter pull a number out of thin air when setting their goals… either an income amount or the number of houses they want to sell, but here’s the problem: It’s not based on the reality of their situation.
I have a better way. Keep reading…
Don’t Be Lazy. Be Analytical!
Before you start putting your goals in place, I strongly urge you to estimate these seven costly budgetary expenditures:
- Business expenses
- Operating expenses
- Personal expenses
- Debt reduction
- Pre-tax savings goals
- Post-tax savings goals
That’s a big list, right?
The reason why it’s important to factor all of these in is because it really shows how much you need to earn to simply break even, cash-wise.
Now let’s take the next step…
Comparing 2019 Actual Numbers vs. 2020 Goal Numbers
A good place to start setting your annual goals is always to see what you were able to accomplish this year and then exceed that number next year.
However, that doesn’t factor in any special objectives you might have for yourself, so adjust accordingly if you plan to pay off your mortgage, dramatically increase your savings, or send a kid off to college, etc.
Here are categories you should examine for your 2019 results:
- Sales volume
- Post-split income
- Lead sources & transactions
- Buyers vs. sellers & average sales price for both
- Average retained commission percentage (List side & buy side)
Once you’ve determined everything you achieved in 2019, then tackle all of those same categories for your 2020 goals.
Make sure you get specific to obtain your 2020 income goals!