Last week, eXp Commercial hosted a comprehensive Business Planning Clinic designed to help advisors plan for a measurable, profitable business in 2026. Hosted by eXp Commercial Director of Brokerage Operations John LeTourneau and featuring industry leaders like Paul Frank, Henry Eisenstein and Jared Thompson, the clinic was split into two high-impact sessions: Fundamentals of Business Planning and Next Level Business Planning.

Here are the essential takeaways shared during the clinic to help advisors prepare for a dominant 2026.

1. Treat Your Practice Like a Business, Not a Hobby

A recurring theme of the first session was that success often comes from consistent, repeatable, and measurable activities rather than excitement alone. John LeTourneau emphasized the importance of tracking metrics, noting that without a clear plan, an advisor loses control of their trajectory. As LeTourneau put it directly to the attendees, “Either you run the numbers, or the numbers run you.”

• Know Your Total Addressable Market (TAM): The speakers discussed the importance of determining if a market has enough “meat on the bone” to sustain a business. A healthy market was described as having a turnover rate of at least 3% to 4%.
• Master Your Metrics: Success involves building an efficient sales funnel. The session highlighted the need to track conversion ratios at every stage — from calls to contacts, meetings to proposals, and listings to closings.
• The Fortune is in the Follow-Up: LeTourneau noted that while 83% of clients say they would use a broker again, only 13% actually do. He pointed out that commercial real estate has built-in follow-up triggers, such as lease expirations, which force a decision to expand, contract, or extend, which create monetizable events for those who stay in relationship.

2. Financial Discipline: The “Profit First” Model

The clinic advised strictly separating finances into four distinct accounts to create forced discipline and ensure profitability is built into the model from day one:

• Operating Expenses: For daily business costs.
• Tax: Setting aside approximately 20-25% immediately.
• Reserve Fund: allocating 10% for emergencies and future investing.
• Profit: Prioritizing profit rather than waiting for leftovers.

3. Scaling: Hire Support Before Sales

In the “Next Level” session, the panel debated when and how to grow a team. A critical insight shared was the danger of hiring other advisors too early. Henry Eisenstein warned that bringing on sales agents before administrative support can be detrimental to a top producer’s business.

“Bringing on agents too fast can turn a good producer into a ‘poor manager’ way too quickly,” he noted.

• Leverage Admin First: The panel suggested that first hires should be administrative — specifically a Transaction Coordinator or a Virtual Assistant (VA). This allows the producer to offload lower-value tasks and focus on revenue-generating activities.
• Geographic vs. Asset Expansion: When looking to grow, Eisenstein recommended expanding geographically (e.g., statewide) before diversifying asset classes, suggesting it is often a faster path to increasing income.

4. The “Unfair Advantage”: Building Wealth Through Investing

The final major takeaway was leveraging one’s status as a real estate professional to build generational wealth. Paul Frank summed up the philosophy of prioritization during the panel:

“People ask what I specialize in. Relationships. Number one, we’re in the relationship business. Number two, we’re in the real estate business. And if you don’t focus on the number one, number two ain’t coming.”

• Insider Knowledge: As industry insiders, advisors have market knowledge, access to deals, and operational expertise that the general public does not.
• Unlimited Passive Losses: It was noted that there are situations where full-time real estate professionals in the U.S. may be able to use certain passive losses to offset other income, subject to IRS rules. Qualification is highly fact-specific, so advisors should confirm their status and eligibility with a tax professional.
• Equity Over Fees: The speakers explained that sometimes advisors consider rolling compensation into equity, though whether this approach is appropriate depends on the specifics of the deal and the advisor’s situation. This can align the advisor with the client and allow them to benefit from the asset’s appreciation and cash flow. However, it’s important to assess this strategy with professional legal and financial guidance.

Final Thought

As the clinic concluded, the message for 2026 was clear: plan, measure, leverage support, and invest in the product you sell. Whether an advisor is just establishing their baseline or looking to scale, the blueprint remains the same: consistency and relationships drive the business forward.

This article is for informational purposes only and should not be construed as financial advice or a solicitation to make investment decisions.