Creating a real estate business plan may seem like a daunting task, but it does not need to be complicated, or overly time-consuming. You can create your own real estate business plan in just a few simple steps.
Why do you need a real estate business plan?
Creating a strong real estate business plan will help you identify areas of business that you can improve upon, and opportunities that you can take advantage of, in order to grow your real estate business. By developing your plan, you can keep yourself motivated and focused on achieving your goals and developing a successful career in real estate.
Create a Mission Statement for your Real Estate Business
The first step to creating a real estate business plan is to define exactly what your business does. What services and benefits do you provide your customers?
For example, you may be looking to provide first time home buyers with the most cost competitive real estate services, while providing expert advice and guidance, so that your customers can achieve their dream of purchasing their very own home. Your real estate business aims to deliver excellent customer service that exceeds expectations.
Keep your mission statement short and focused on clearly defining the purpose of your real estate business.
Identify and Research your Target Real Estate Market
The next step to your plan is identifying your target market. Maybe you are targeting a particular age-group of buyers in a specific location, or buyers looking for investment opportunities. Perhaps your business is focused on sellers of retirement age, looking to sell their property in order to downsize and free up some extra cash.
Once you have defined your target market, dedicate some time to carrying out research. How profitable is your target market? Is the specific real estate market growing or declining? And what is the most effective method of reaching out to your target consumer?
Carry out a SWOT Analysis of your Current Real Estate Business Activities.
Once you have identified your target market and reviewed your current business activities, it is then time to carry out a SWOT Analysis of your business – Strengths, Weaknesses, Opportunities, and Threats.
Identify four strengths that you possess, that can help your business excel. Are you an expert negotiator? Or maybe you have in-depth knowledge of your local real estate market?
Then, a task a little trickier to perform is to identify your weaknesses. What are four weaknesses holding you back in your real estate career? Maybe you lack the technical knowledge to market your business online, or you struggle to make contacts at networking events?
Identifying where your weaknesses are, will help you to work on improving upon them.
Opportunities, that your business may benefit from, could include factors such as your target market is expanding, there may be an influx of first-time homebuyers to your area or an increase in investment opportunities. These are all factors that you can focus your business activities and goals on, in order to push your real estate business forward.
Threats can include a high level of competition in your local area or a decline in your target market. Once you have identified the threats to your real estate business, you can then establish a plan to overcome or minimize the threats.
For example, if you are facing a high level of competition in your area, you may consider offering additional services that your competitors do not, that will entice customers to choose your real estate business over that of your competitors. Maybe you need to improve your follow up services, to ensure you are delivering better customer service, than that of your competitors. Identifying threats to your real estate business will highlight areas you need to work on.
Create a list of your Personal and Financial Goals
When creating your personal and financial goals, ensure to have your accounts in order. How financially stable is your real estate business currently? Do you have a clear view of your income and expenses?
There may be areas of your business where the ROI is low, where you may consider investing your time and money in an alternative business activity. e.g. altering marketing campaigns. Taking these factors into consideration will help you to identify your financial goals.
Creating a list of your personal and financial goals will help you stay focused and motivated in growing your real estate business. Create a list of 4 personal and financial goals. This task will be made easier by looking back at your SWOT Analysis, as well as your current finances, to identify which areas to concentrate on.
Create small goals to start, to give yourself the best chance of achieving them. Keep your goals realistic. You could create a personal goal, to improve your networking skills by attending a certain number of events in a year or furthering your education in a certain real estate specialism. Financial goals could include achieving a certain percentage of profit in a quarter or generating a larger return on investment from your marketing activities.
Create an Action Plan
Once you have completed the above 4 steps in creating your real estate business plan, it is now time to develop your action plan.
What actions can you take to grow your business, based on your strengths? How are you going to improve on your weaknesses? What actions can you take to grow your business based on your opportunities, and minimize your threats?
And finally, what actions can you take to achieve the personal and financial goals you have set for yourself and your real estate business?
Your action plan will keep you focused and on track, in achieving your goals and growing your business.
Review your Real Estate Business Plan on a Regular Basis.
It is extremely important that you review your business plan on a regular basis. Ensure you are sticking to your plan, and you are progressing with your goals. Make sure that your goals are still in line with your SWOT Analysis.
It is also important to check your real estate business plan as there are many external factors affecting opportunities and threats, in the fast-paced industry of real estate. These factors may change your business plan over time. You may need to alter your plan slightly to stay aligned with industry changes.
Creating a real estate business plan, need not be complicated or time-consuming, but an effective method of growing your real estate business. So, don’t delay, and start planning for the future of your business!