The world of real estate is highly competitive. In order to develop a secure and stable real estate business, it is absolutely necessary to develop a strong business plan. What business procedures are needed for creating a real estate business plan?
It can be quite overwhelming when starting out, especially if you live in a highly competitive area. However, the key to success lies in creating a solid business procedure that will boost your trajectory and help you maintain steady course as you advance through the world of real estate.
This is also one of the fundamental differences between businesses that reach long-term success and those that prematurely fail. Here are must-know things for creating a successful real estate business plan.
SWOT stands for strengths, weaknesses, opportunities and threats. This planning methodology allows you to identify and outline several crucial points of your real estate business. There is a two-way division, where strengths and weaknesses are internal and opportunities and threats are external. This is a great model for seeing where you stand as a business.
In a competitive market it is absolutely necessary to know what your weaknesses are and how to fix them, but also what your strengths are and how to leverage them most efficiently. Perhaps you have an amazing offer for your clients but lack marketing skills. Seeing the contrast using this method of analysis is a surefire way to balance out your business plan and create a solid foundation for long-term success.
Threat usually stands for things like identifying how the competitor is performing. While on the other hand, you should also be able to see the opportunities, like when trying to find a proper marketing niche for what you have to offer.
Not every real estate company can offer the same type of deals. This is an important opportunity for you to niche down and target the right clients in order to make the most of your real estate business plan. This is an important thing to consider when marketing your real estate offers, because it will not only save your money and time but also allow you to reach more potential clients who will be highly likely to buy from you.
One way to niche down is to create an ideal client persona. In other words, this will be an imaginary person who will have a specific set of characteristics which are most likely to be in line with what you have to offer. Perhaps your business will thrive the most in a less commercial and more family friendly environments.
So, your ideal client could be a recently married couple who are expecting a child. With a combined median income of around $80,000. Your ideal offer for them could be one of the beautiful suburban Odessa apartments. Good questions to ask yourself when creating a persona are; what is your client’s demographic, what are some of the deal breakers for them, what are their incomes and how to best contact this type of client.
When trying to niche down it is also important to thoroughly assess the market. This could include looking into things such as: am I selling to a first-time buyer, how often have I worked with these types of clients, how has that impacted the price over time?
The other part of this equation is determining how competitive the market is in this particular scenario and are you competing with the big names in the industry. Like most things nowadays, real estate marketing is largely done online, so a good way to get a head start is to check what the search engine optimization (SEO) is showing for your competition.
This is a great way to find some good leads. By simply learning from the competition, you can now know things like their branding, content, and their properties. Another valuable piece of information here to note is the channel through which they contact their clients.
A huge part of any good real estate business plan is to also include the finances. This means that your plan will be able to be executed according to plan only if you have a good understanding of your budget and expenses. Determining the latter is a good starting point and it usually includes business expenses like broker fees, website and marketing fees as well as any fees for managing MLS databases.
Personal expenses are also quite prominent because as a real estate agent you will have to invest in your clothes and the equipment that you use. Other elements of managing your finances also include keeping track of your income, transactions and leads.
A good plan is not worth much if it is not put into action. That is a crucial thing to keep in mind while creating a plan, as you will need to execute it later. For instance, this could be as tangible as deciding to have a set goal of leads which are expected to be generated in the first year.
The next step could be, choosing the medium for generating leads, like social media. In addition, you should be able to back these up with a strategy such as posting online consistently. Some smaller actionable steps to consider include: developing a blog on which the content will be shared or investing in a social media scheduling technology to help with your posting consistency.
The real estate market definitely comes packed with many challenges. Luckily a good business plan can help you successfully navigate through it. Some things to consider are: using the SWOT analysis, finding a niche, assessing the viability of the niche, managing the financial side of your plan as well and taking small actionable steps in order to ensure realistic progress.