Many Real Estate Brokers and Agents Ask:
- What is Real Estate Business Planning?
- Why have a Real Estate Business Plan?
- What should be included in a Real Estate Business Plan?
- How does it Real Estate Business Planning Impact my Career?
- How do I Create a Real Estate Business Plan?
What is Real Estate Business Planning?
A real estate business plan is the roadmap to reaching your dreams and achieving a six figure income. A good real estate business plan consists of a written outline of your real estate business with a specific set of instructions where you want to take your real estate business and what you need to do to manage towards your desired outcome. A well-conceptualized real estate business plan is long-term compass, one that will keep your real estate career on track, regardless of the business climate.
Why Have a Real Estate Business Plan?
Jumping into real estate, whether as a broker, manager or agent, without a plan is foolish. Business planning helps coordinate your activities, decisions and options. Business planning also saves money, time, and effort and renders the best result.
To succeed in any business, including real estate requires thought and planning, the evaluation of options, identification of hurdles, organization of priorities, the creation of strategies and the decisiveness of execution.
Manchester property investment company RWinvest have plenty of free online guides to help you develop a real estate business plan which can provide you with more information before you get started.
One of the top reasons for failure is the lack of foreword thinking. Every business, including real estate firms, requires constant analysis and planning. If your business is succeeding you need to know why it is succeeding. If it is failing, you need to find out why.
What should be included in a Real Estate Business Plan?
Any real estate business plan should include aspects such as:
- A detailed description of and assessment of your current real estate business situation;
- A definition of your real estate business focus and longer term strategic intent;
- A vision of what results you want to achieve in your real estate business;
- A list of action activities that you will utilize to achieve your goals;
- A marketing plan to expand and grow your real estate business;
- A financial plan including an Income Projection Statement (revenue and expenses) for last three years, Monthly Cash Flow Projection and Balance Sheet.
What are the Steps in Creating a Real Estate Business Plan?
In short, examine your real estate businesses strengths and weaknesses. Review your company vision and focus, then set your objectives and determine the results you want to see. Regularly perform a reality check and adjust accordingly.
Understand and anticipate that things will go wrong. By analyzing dangers before they occur, you can minimize the risk of being caught off guard. Based on possible events, forecast your worst case scenario and prepare contingency plans – thus always making sure you have a “Plan B.”
Remember to Have the Right Attitude
- Firstly you need to have passion for your clients, your industry, and the type your of business. With passion you are halfway to your success.
- Secondly you must have a vision towards what you are working and what exactly you want to achieve.
- Following your vision thirdly is a desire to grow your Real Estate Business and improve revenue and profitability. Included in this is a drive to know your costs and contain it.
- Fourthly, you will need the right tool to set up this plan. Wasting money on the wrong product will increase your frustrations and decrease productivity resulting in less profitability.
- In the fifth place, you will need commitment to keep to your business plan and review it often to ensure that you are still going where you want to go.
The Best Solution for Real Estate Business Planning
Fortunately a simple, online step-by-step solution is now available for real state brokers and agents that need to create a real estate business plan. One of the advantages of using an online business planning software is that real estate agents don’t need to be financial geniuses to create a real estate business plan.