Real estate business plans can cover your business entirely or focus on a specific service. They can set an income goal or be used as a rolling monthly work plan. However you use them, the importance of a real estate business plan is simple: Strategies on paper make ideas come true. This document then acts as a guiding document guiding you on the path to success.
While it may seem easy, there are goals, strategies, and tactics that need to be identified. You need to know where you are right now versus where you want to be. Let’s take a look at the necessary steps to take when writing your first real estate business plan.
Step 1: Initial planning
Start with a summary to describe what you are trying to tackle and the timeline involved in implementing the plan. The summary will lead to opportunities or goals that you would like to capitalize on.
For example, your summary might look like this:
ABC Realty is an Ohio-based real estate company that specializes in startup homes and condos for the community of Columbus, Ohio. ABC Realty Home Listings provide what new homeowners are looking for when making their first home purchase. ABC Realty clients will benefit from the attention to detail and customer service that new homeowners look for throughout the home buying process. Sales are expected to be moderate in the first year and increase significantly in the third year.
Step 2: Understand the strategy and tactics
The key elements that underpin each objective will be the strategies and tactics. Your strategy will outline the overall goals, messages, and audience. And your tactics will include the initiatives you take to achieve each strategy.
Consider the opportunity to market your business to a new community. One strategy may be to establish your brand so that potential customers recognize your name. Support tactics may include joining a real estate association, attending Chamber of Commerce networking events, advertising in the local newspaper, using social media, analyzing marketing content delivery or the organization of an open house.
Step 3: Allocation of deadlines
A goal needs to be anchored within a time frame to create a sense of urgency, but tactics take time. And in some cases, the tactics may be ongoing. Be sure to allocate “X” hours per month or quarter to complete each tactic (eg, attending a networking event).
Step 4: Budget management
Remember to consider the costs. As a real estate agent, you are an independent seller. It is important to calculate the projected income and expenses for each year. However, as a one-person team, it is equally important to describe your day-to-day business operations, identifying where support is needed.
Step 5: Measure your results
Once your plan is complete, assess whether or not you achieved your goal. If not, find out why. This will be a good document to have for historical reference, keeping you away from tactics or strategies that you deem unsuccessful.
Remember that if you want to achieve a certain level of income or a certain number of transactions, you have to take into account the different goals that can help you achieve this. A comprehensive business plan is a great place to start, but focused plans can help you gain the edge.
Express Real Estate is the nation’s premier online real estate school, offering pre and post licensing courses, continuing education courses and professional development to hundreds of thousands of real estate agents across the country. Real Estate Express, with its sister schools McKissock apprenticeship, Higher School of Real Estate, Allied schools, The Institute for Luxury Home Marketing and Hondros Education Group, helps real estate professionals achieve lasting success at every stage of their real estate career.