10 Tips for Writing a Killer Real Estate Business Plan

Biz Plan

Education and experience lay the foundation for your success as a real estate salesperson, shaping you into someone who is well-versed in real estate law, talented at sales strategies and adept at generating leads. While these are important aspects of your success, how much time and resources have you put into developing your business? Real estate training and real estate schools in California should teach these best practices.

Any business—including your real estate business—needs a detailed strategy for success. Here are 10 tips for helping  your real estate agent business plan becomes a vital road map for success:

  1. Write it down

This is job one. Real estate agents understand the importance of written contracts, disclosures and agreements. But when it comes to writing down a detailed plan for their real estate business, far too many will have no written documentation. Like a ship at sea with no navigation, they can only bob along on the waves, hoping the weather will carry them to the right shore.

Your real estate business is far too important to operate in such a haphazard way. A written real estate agent business plan not only serves as a critical guide to success, but it forces you to carefully define the goals you have for your business, as well as the steps you are going to have to take to get there.

  1. Begin with an executive summary

The best way to begin your written business plan is by providing an overview through an executive summary. Take adequate time to consider your mission, as well as the goals and objectives necessary to fulfill that mission. In addition, your executive summary should include a detailed description of the services you provide, your available facility and equipment, and your staff, if any.

  1. Define your customer and marketplace

Conducting a market analysis should also be an important component of your business plan. Using relevant demographics—such as age, gender, household income level, past home buying/selling experience and other characteristics— define the people who are most likely to be your future clients. In addition to defining your future clients, identify their preferred sources of information, such as websites, local newspapers or magazines, or social media. Once you have identified their preferred media outlets, describe how you will reach them using these avenues.

  1. Research your competition

Your real estate agent business plan should include information on how your counterparts are meeting the needs of your targeted marketplace. Include successful agents at your office as well as those at other brokerages. Based on your analysis, describe how you will set your services apart from those of your competitors, yet extract any useful practices for attracting clients. financial-planning-pic

  1. Define your necessary activities

Goals and mission statements are important, but to reach them, you’ll need to define a series of activities to get you there. Based on your daily business operations, provide details of your proposed day-to-day activities that will serve your business objectives and ultimately, your goals and mission statement. If you are part of a team or have an assistant, build accountability into your activity list to indicate who is responsible for what step.

  1. Include financial details

The financial segment of your real estate agent business plan should include a financial statement showing cash and assets, along with liabilities and expenses. Then, calculate your projected income and expenses over the coming year, based on your plan’s goals. Keep your financial goals both realistic and challenging.

  1. Formulate a marketing strategy

In most cases, you will want to include a detailed marketing strategy as part of your overall business plan. Use a marketing mix model to provide information on product, price, place and promotion. Describe how you will use each of these marketing elements to set yourself apart in the marketplace and progress toward your business goals.

  1. Implement your plan

Implementation is one of the most overlooked components of a successful business plan. Define specifically how you will implement your plan, including deadlines and accountability. Then, implement your plan rather than letting it collect dust in a desk drawer. Follow the activities, staying mindful of any deadlines for completion.

  1. Measure the resultsroi

    The success of your business plan’s activities should be measurable so that you are able to track your progress in achieving your plan’s mission, goals and objectives. Review your business plan on a regular basis to measure progress. Decide what your points of measurement will be so that you can collect appropriate quantitative and qualitative data to measure your success or identify problem areas.

    1. Stay fluid and flexible

    While putting your business plan into detailed, written form is essential, that doesn’t mean you can write your initial plan, then tuck it away in a file folder and forget about it. Your business plan should be a working document and a vital part of your daily operations. Get into the habit of referring to your business plan on an ongoing basis. You should be ready to add or subtract activities to reflect a changing business landscape and update any financial projections as necessary, without losing sight of your goals for success.

Written by Byrd Bergeron, Strategic Partnerships Manager, dotloop

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