Whether it is your first year in real estate or you have a few years under your belt, where are you going with your business? How do you maintain the level of business or better yet grow and increase the amount of business that you did last year? How do you do that? The drafting of a comprehensive written Business Plan should be your top priority. It is a vital first step to becoming a very successful agent.
Do I Really Need a Business Plan?
You would not consider building a new house or taking a long trip without preparing a detailed plan. Similar to the plans for your house, your Business Plan must be focused, understandable and in writing. One that you will follow and update regularly. An effective Business Plan will ensure that you will keep a laser-like focus on the goals you’ve set for yourself!
Consider your Business Plan like the GPS on your phone. If you do not put in the address of where you are going you will drive around in circles and not arrive at the destination you were hoping for. The top 3% of sales professionals have one thing in common – they all have a written Business Plan. The preparation of the plan is simply the first step. Your Business Plan will become your compass to ensure you are heading in the right direction. Every good Business Plan must include an Action Plan, which will detail the specific steps that you will take to achieve each of your goals. It must be maintained as a dynamic and living Plan. It is a good idea to sit down at the end of every month and review and update the Plan to make sure that you are on the right track.
Identify Your Goals using the SMART acronym
- Time-Based (specify a deadline)
How do I build a Business Plan?
Never be intimidated by the thought of creating a business plan. When creating a new Plan for the first time, start with the essentials and over time build up the details as you learn and gain more experience. Start by conducting some research into Real Estate Business Plans. We offer a training course on how to prepare your business plan, just check the Training Calendar to find out the dates. If those dates don’t work, Wayne Throop, our Training Manager and business coach would be happy to sit with you and help you work on your plan. Alternatively, you could take an experienced agent out to lunch and ask for their suggestions on how to start the process. There are many business plan templates available to help you get started. Richard Robbins is an outstanding resource for the entire real estate industry and is a great place to start. Buffini also has many great resources such as How to Create the Perfect Real Estate Business https://blog.buffiniandcompany.com/how-to-create-the-perfect-real-estate-business-plan-for-the-second-half-of-the-year. Check out several examples to see which one works for you.
Business Plan Main Areas
Each Business Plan is unique. However, there are several areas you should cover:
- Executive summary
- Mission, vision and strategic objectives
- Current real estate environment including market analysis and competitors
- Your strengths and weaknesses
- Target market
- Current challenges and solutions
- Business Structure
- Networking plan
- Financial Plan, how to control the expenses
- Marketing Plan
- Cash flow projection
- Creation a virtual team of an accountant, lawyer and social media experts
- Establish all the necessary financial documents
- Future Challenges and Opportunities
The preparation of a Business Plan is the beginning of a career-long process. Without a clear, concise and up to date Plan being a successful agent is virtually impossible. Talk to other agents and do your research. By following your Business Plan you will be on your way to being a very successful real estate professional.
We want you to succeed in your career so please reach out to us if you need help getting started or if you want some input on your current business plan. We are here to help just email us at firstname.lastname@example.org.