Guest Post – 7 Ways To Start a Real Estate Business Like A Boss
Real estate market is notorious for fluctuating wildly. But if you have been a real estate broker for quite some time and have excelled at your job, establishing a real estate business is a natural, as well as a profitable, next step.
To make the giant leap from a broker to a businessperson, you should possess some key qualities that are inherent to a successful entrepreneur such as smart leadership abilities, perseverance in the face of adversities and the drive to work hard to attain your goals.
Furthermore, your tenure as a real estate agent must have allowed you to acquire valuable experience, esteemed contacts and substantial financial resources that are integral to founding a real estate firm. All you need is a little guidance on how to embark on your entrepreneurial journey.
Following are 7 ways that can help you start your real estate business like a boss:
Make an idea file
Once you decide to step into the corporate world, you should immediately begin to plan your business goals and how you expect to achieve them. Communicate with other business owners to pick their brain for ideas about your startup, understand the challenges they faced and learn from their mistakes.
Most people are more than willing to share their wisdom; tap into this basic human nature and ask detailed questions about how you can avoid the pitfalls of starting a new business, what surprises they encountered as business owners and what advice can they give you.
What is significant to remember is that the process of accumulating ideas for your business should not be rushed as it an initial guideline of how you should shape your business for maximum profitability.
Evaluate the market
2012 Economic Census recorded that there are more than 86,000 real estate firms operating in the United States, and the number is bound to be even higher now.
Therefore, it is imperative to evaluate the market statistics to determine the need for services you wish to provide, whether there is a scope for growth for your business plan, and the number of existing competitors in your area and their market penetration. You should also analyze if your business will fare well in the presence of stiff competition and how you can improve your strategy to gain an edge over your competitors.
Moreover, you need to determine the niche you plan to cater to; whether you will specialize in residential or commercial real estate, local or city-wide properties, national or international listings, etc. It is recommended to offer your services to a specific real estate niche instead of dabbling in multiple facets of the industry. It is always better to be the best in your field.
Create a business plan
A business plan is the founding structure of your real estate brokerage. It allows you to pen down your business ideas along with the strategic measures that you need to implement to establish a sustainable business model.
Various helpful resources, including sample business plans and valuable advice, can be found on U.S. Small Business Administration’s website, which can help you get started.
Following is an overview of the essential elements of a prospecting business plan:
- Executive summary is an overview of your business model, shared with potential investors, which includes the projected sources of revenue generation and the services you will offer
- Mission statement highlights your goals and identifies what sets you apart from your competitors
- Budgeting outlines the financial projections of your business; estimates your expected earnings and expenses such as marketing and operational costs, insurance, taxes, etc.
- Business structure describes the legal structure of your business whether you are organized as an LLC, sole proprietor, a C or S corporation, a partnership, etc.
- Marketing strategy describes how you plan to share your company’s vision with potential clients and highlight your unique selling proposition (USP)
- Recruiting strategy includes how you intend to find and retain the most exceptional people
Analyze the finances
If you are considering to start a real estate business, you must be backed by substantial amounts of savings that provide you with the security net necessary to make the career leap.
However, establishing your brokerage may require more money than you expected and the primary income is often insufficient for daily operational costs.
Therefore, analyze all the financial aspects thoroughly, including the cost of leasing an office, equipping it with office supplies, and the everyday expenses of running it along with the cost of getting a license, advertising and marketing budget, and the cost of outsourcing jobs such as web designing, accounting and graphic designing.
Once you have an estimated lump-sum amount required to get you through the initial lean months, if your savings are not enough, you can consider obtaining a bank loan, partnering up or taking help from a silent investor.
Invest in marketing
Your marketing strategy can make or break your market penetration. Therefore, construct an elaborate and effective marketing strategy that reaches out to your target demographics and utilizes the various mediums including print and digital media.
Furthermore, invest in branding and create a cohesive image for your company with a polished website, dedicated social media accounts, and unique marketing materials like e-newsletters and ads, along with a distinctive logo that emulates your business ideology.
Network like you mean it
As a real estate agent, you understand the importance of profound interactions with your customers to forge a trusting relationship to drive sales.
As a novice in the business world, you should utilize your eloquence and mingle with fellow business owners to gain valuable insights and guidance about running a business. Despite your competence as a real estate broker, you need all the help you can when starting your own firm.
Therefore, attend networking events, join social media discussions and become a part of the online real estate community.
Recruit the best team
A robust, skilled group of employees is the backbone of a thriving company. Hence, you need to find the most talented salespersons through extensive research and thorough scrutiny to help you achieve your business vision.
The right team will support your entrepreneurial efforts and expedite your business growth. Make full use of technology such as an online real estate software to provide real-time solutions and supplement the performance of your team.
The real estate industry is a challenging field where you need to utilize all the help that you can get to establish a profitable business; whether it is in the form of financial assistance, expert advice, a capable unit of employees or technology. Tried something else? Let us know in the comments below!
Erica Silva is a blogger by choice. She loves to discover the world around her. She likes to share her discoveries, experiences and express herself through her blogs.
Find her on Twitter:@ericadsilva1