Are you thinking of becoming a real estate agent? The real estate industry continues to thrive as there are always people looking for somewhere to live or do business. Therefore, starting a real estate business can be a lucrative way to make money. However, what many aspiring real estate agents don’t understand is that launching a career in real estate is similar to starting a new business. As a real estate agent, you are associated with a brokerage but you are an independent contractor and your own brand. In this business, you are ultimately responsible for your success.
As you know, planning is a crucial component of any successful business. Many new entrants in real estate fail in their first few years because they don’t start by creating a real estate agent business plan. And for you to achieve your goals, it’s imperative that you create a solid business plan for real estate agents. But what is a real estate agent business plan and why is it necessary?
Why Is a Real Estate Agent Business Plan Important?
A real estate agent business plan is a document that details what a real estate agent wants to achieve and the steps they will take to accomplish it. It is a personal guide to keep you on track in the real estate business.
Writing a real estate agent business plan is one of the most powerful things you can do to start your career on the right path and ensure growth to the next level. A good plan, if implemented, will keep you ahead of the competition and make your business grow. Think of it as a blueprint for success. As the old adage goes: Failing to plan is planning to fail. Without a plan, you won’t have a clear direction.
If you want to establish a viable career in the real estate industry, you should learn how to create a real estate agent business plan. In light of how important a business plan is, it makes sense to take time to compose it. This blog aims to help you craft your own business plan the right way.
9 Steps to Creating a Strong Real Estate Agent Business Plan
1. Write an Executive Summary
The first component of a real estate agent business plan is an executive summary. This section sums up (in a couple of sentences) who you are, the services your business offers, who you serve, and where you currently operate from. In other words, it’s an introduction to your business plan that briefly outlines the key details of the plan. It will include your mission statement. This is the foundation that supports your whole real estate agent business plan.
While this section comes at the beginning of your plan, it’s advisable that you complete it at the end. It’s easier to draft this section after you have dissected the business piece by piece and mapped out your real estate agent business plan.
2. Mention the Company’s Corporate Structure
Most real estate agents are part of a real estate team. If you will be working with a team, make a list of all members of your team. This includes their personal information, skills, education, experience, and their different roles. These are the people who will help you implement your real estate agent business plan and ensure success.
3. Define Your Target Market
Before you move further with your real estate agent business plan, you need to define your target audience so that you can begin your branding process from their perspective. Once you have an idea of what services you want to provide, identify who your ideal real estate clients are. These are the people whom your services are best suited for.
The market niche you choose will depend not only on your passion but also on its viability. You can niche down based on the clients you serve (buyers or sellers), property types, neighborhoods, price points, life events, etc. Once you determine your ideal niche, you want to learn as much as possible about that group. For instance, where are they located? How old are they? What are they looking for in a house? What’s their annual household income? How can you reach them?
Understanding your market niche (the services they are seeking and the characteristics that define them) will help you decide how best to attract them with your branding and how to serve them. In fact, the more you know about your target clients, the more effective your marketing strategies will be.
Don’t try to appeal to all property sellers and buyers in your area. If you do this, it will be hard for you to stand out. By honing in on a narrow target, you can make yourself a go-to agent for that client group. With a smaller pool of potential clients, you will have less competition and improve your chances of securing a deal.
4. Analyze Your Local Competition
In this section of the real estate agent business plan, you need to identify your primary competition in your target market and study what they are doing. For instance, what marketing channels are they using? Learning about your local competition will help you identify the gaps in the market so that you can set yourself apart and outperform them. You can also learn a lot from your competitors. For instance, you can test the real estate lead generation channels they are using and replicate their success.
5. Conduct a SWOT Analysis
Every real estate agent business plan should include a SWOT analysis. This analysis is used to identify and assess the key factors that impact your real estate business – your strengths, weaknesses, opportunities, and threats. Strengths and weaknesses are internal factors while opportunities and threats are external factors. You should evaluate each of these categories based on what you have learned about yourself and your real estate business so far.
6. Set SMART Business Goals
In this section of your real estate agent business plan, you want to outline what you intend to achieve in your real estate career. Your goals ought to be SMART (Specific, Measurable, Attainable, and Timely). Consider both your long-term and short-term goals. Your short-term goals should feed your long-term goals.
7. Establish Your Sales and Marketing Strategy
Now that you’ve identified your goals, how are you going to achieve them? As a new agent, generating real estate leads is your main goal. Therefore, you need to create a real estate marketing plan that will help you achieve this.
Make a list of the real estate marketing strategies you intend to use to boost your real estate generation. This may include the following:
- A real estate agent website
- Social media ads
- Real estate referrals
- Networking by attending local real estate events
- Content marketing
- Building a real estate sales funnel
Also, make a list of the real estate agent tools you will employ to achieve your goals. This may include tools for social media management, CRM, and lead qualification. One must-have tool is Mashboard. This tool makes qualifying real estate leads easier by using predictive analytics and mathematical algorithms. You don’t have to qualify leads manually, a process that can be time-consuming. The tool will also help you match real estate leads with investment properties.
8. Create a Financial Plan
A sound financial plan is a critical part of your real estate agent plan. Assess your start-up and recurring financial requirements and create a budget. You also need to estimate your potential income considering the average figures for the local market. Based on these numbers, you can know your cash flow expectations. Remember, you also need a financial reserve to cover unexpected future costs.
9. Follow Up
A real estate agent plan is not a static document that is written and placed in the files. It is a living document that needs to be reviewed regularly and altered as needed. You’ll need to update your plan as your business grows and the real estate market evolves. This way, you can get the most out of your plan.
The Bottom Line
Writing a real estate agent business plan may seem daunting but it’s key to developing a strong, sustainable business. You need to create a roadmap to success. If done correctly, it can help you get ahead of the competition and grow your real estate business. If you’re thinking of becoming a real estate agent in 2020, be sure to include these key components in your real estate agent business plan. It will significantly increase your chances of succeeding in the business.
Don’t forget to check out Mashboard and learn how this innovative tool will help you boost your career.