How to Create a Real Estate Business Plan?
What this simple plan does is act as a guide in helping any real estate business achieve whatever goals they have set for themselves. It covers all the basics such as marketing tactics to sales strategies. Also, know that this type of plan can cover all of a real estate business's activities all the way into the foreseeable future. So whether it's 12 months or even 5 years, it will serve as a detailed guide for everyone to follow.
1. Know Your Target Market
What you should do is conduct a market assessment that summarizes the financial, cultural, and demographic factors that affect buying and selling real estate of the area wherein you want to do business. It is important that you look into things like the current and past property values, economic influences in the market, changing in house purchases within a span of time, and much more. Once that's done, you may then outline your customer's demographics. You should look into their age, income, marital status, education, and if they have children so that you'll have a good idea as to who you should be catering to.
2. Point Out Your Competition
You'll need to know who your likely competitors are so that you can develop strategic real estate plans around them. What you can do here is to list them down and then point out details such as who their target audience is, what properties they're focused on, the amount of experience they have, and any potential weaknesses they show which you can take advantage of. Make sure to describe all of the qualities, both good and bad, of your competition into your business plan.
3. Make the Executive Summary
Now that you have shown who your competition is and who your target audience is supposed to be, you may now start making your executive summary. This is where you show exactly what your business is all about that is going to help you promote your business faster through flyers and brochures. In three to five sentences, write out what your real estate business will specifically do, what services you will offer, your area of operation, and who you're going to cater your services to.
4. Define Your Mission and Vision Statement
Your mission statement builds on the executive summary by clearly explaining the purpose of your real estate business and what goals and action plan it aims to achieve. As for the vision statement, you simply want to describe what it is that you see for your construction real estate business in the foreseeable future.
5. Do a SWOT Analysis
You must create a section that points out all of the internal and external factors which determine whether your real estate business can gain or lose sales. Consider what strengths, opportunities, weaknesses, and threats your company have and will encounter as you go along with the business plan.
6. Create the Management Structure and Outline Your Daily Operations
You'll need to show who your team is and the management organization flowchart that determines all of the areas of responsibility for each team member. After you've done that, you can outline your daily operations and determine who will oversee those operations. Make sure to provide a detailed description of each action that must be completed by each member.
7. Layout Your Financial and Marketing Plan
Start with your financial statement and plan. Layout all of your expenses via a spreadsheet. You should show your startup and ongoing cost amounts. Then you will need to determine what other brokerages pay to stay afloat. You should consider reaching out to brokers in your network who can provide you with the information. Also, remember that your expenses will change if you choose to hire more agents. Once that's done, point out whether your business will be funded by other businesses, through a broker or yourself, or if it'll be via a loan. Lastly, you will have to point out the marketing strategies that will get your target audience to do business with you. Provide descriptions of the methods that you'll be using and who will be responsible for making sure that they're properly conducted.