When most people get into the real estate game, they tend to believe that it will be like any other job. But that's not the case, as real estate agents are independent contractors, not employees. Being an agent is like running your own business, so having a business plan is critical if you want to make it big in the real estate industry.
Why Is A Real Estate Business Plan Important?
The truth is that being a real estate agent isn't like other "normal" jobs. There aren't set hours. You are not given a stack of leads and told to call, nor are you given much guidance on how to get clients. In other words, you're basically in charge of running your own business when you sell homes. Writing a business plan that is an important part of the planning process. It will identify who your ideal clients are, how you'll reach them, and your business's overall financial goals.
Using A Real Estate Agent Business Plan Template Is A Smart Move
If you're ready to put together a business plan, then working from a template geared towards real estate pros will help you make sure you don't skip a beat. If you're not sure what to include in your business plan, use our guide!
What's in a Real Estate Agent Business Plan?
Almost every business plan will start with an executive statement. This is a small paragraph discussing who you are, what your goal is, and what area you are looking to serve. It serves as an introduction to you and your company.
A good statement will include the following:
- Information about who you are
- An overview of the services you offer
- The area you serve
- Your personal goals with your company
Team Management Summary
If you decide to work with a team of agents underneath you, your business plan will need to include a team management summary. This involves having a chart of your teammates' names and how they will contribute to your real estate business. Each teammate should have timeframes that pertain to the goals they are putting forth.
If you intend to hire more people, adding information about their roles and how they will play into the overall business will be a smart move. When adding information about future hires, make sure to include a timeframe for their onboarding and how you intend to train them.
With any business, there will be a target audience that you want to cater to. Knowing who your target audience is matters immensely and will change how you advertise your services and connect with your people. When putting together a target audience profile for a real estate business, keep the following in mind:
- Housing goals
- Ideal living situations
- Home buying experience
After you have your target audience, you will need to segment your market (e.g., first-time buyers vs. homeowners) and determine how you will market your real estate services to each person.
You should also make sure to add market trends as part of your target audience writeup.
This is going to be the "meat" of any real estate agent business plan template. Any business goal you include should have the following traits:
- Specific- For example, you should say, "We want to have $50,000 in business within the first three months."
- Measurable- You need to be able to quantify every goal to figure out how to make it happen. If it's not a number, you shouldn't have it as part of your goal.
- Attainable- If the goal isn't going to be doable, don't write it down. Stick to small steps.
- Reasonable- Doable does not mean that you should sacrifice your health and sanity to make it happen.
- Timely- Can you outline a reasonable time for this? If so, then it's a good thing to add.
Once you finalize your business goals, you will need to outline how you will get those goals accomplished.
Your real estate business plan should also include a SWOT analysis. A SWOT analysis is a brief explanation of your strengths, weaknesses, opportunities, and threats.
With each mention, you should explain how your company will come out on top of any issues that could arise.
This section also tends to include competitor analyses. So, take a look at other real estate agents and figure out how you can gain an advantage over them. Think about what your business will do to offer a better service to your customers?
Create Your Marketing Plan
One of the most important sections of your real estate business plan will be your marketing strategy. You'll want to write a marketing plan that will show how you intend to get leads, how you want to advertise your company, and how much you intend to spend year after year. The more detail that you have in this section, the better off you'll be.
Other things to add to this section include:
- Lead Generation Methods- How are you going to be getting your clients? You will need to go into detail when it comes to the how's, the price you pay for lead gen, as well as how effective you're expecting them to be.
- KPIs- How are you going to measure your progress? What statistics are you going to pay attention to in your marketing analysis? The metrics you use to define success will make a world of difference.
- CRM/Software Plans- What CRM software will you use? Are there other programs you want to use to improve your client relations? List them, and mention their costs.
- Client Experience Measurements- How will you know if your clients appreciated the work you did for them, or if they were less than satisfied?
- Projected Sales Forecasts- How much do you think you will be able to make in the next five years if things go well? If you can, back up those beliefs with statistics and research.
If you were looking for a quick and easy way to hit the ground running with your new real estate endeavor, the best way to start is with a detailed business plan.
And if you're still unsure about how to format things, you can always start off with a real estate agent business plan template. While it might not be the most common way to get your creative juices working, but it will yield surprisingly good results.