Tips for Writing a Real Estate Agent Business Plan
The real estate market is hot right now and has been for some time. According to the Canadian Real Estate Association, home prices were 23% higher in April 2021 than at the same time last year. Increased immigration targets, the yearning for more space after being cooped up through the pandemic, and lower borrowing costs have all created a high demand for housing. While the market is predicted to cool off and become more typical in 2022, it will remain strong. Despite where the market goes, being a real estate agent always remains an excellent career option.
Although becoming a realtor usually doesn’t require as much funding as beginning other businesses, a business plan remains essential. Professional business plan writers can help to craft a document that will define where you are today, where you want to be at a specific point in time, ways in which you’ll measure your performance, and when you should make a course correction. If you’re unsure where to begin or how to find professional business plan writers, there are many valuable internet resources to help you online.
Essential Points to Include in Your Plan
There is specific information that needs to be included and organized in your business plan, but here are a few key sections.
Mission Statement – This is the foundation. Your mission statement is what the rest of your business plan is built on, and it clearly and succinctly outlines your goals and guiding principles.
About Yourself – here you can highlight your skills and experience and you will contribute to the company’s success. A more comprehensive resume can be attached in the Appendix of the business plan.
Target Market – This is a particularly important section and, if professionally written, will reflect all the research that you’ve undertaken. Saying that real estate agents help buy and sell homes is true enough, but it’s too broad. Who, specifically, are your clients? Are they first-time home buyers or sellers? Will you be dealing with luxury homes or more modest, middle-class structures? Are your clients first time home buyers, or are interested in investment or commercial properties? Identifying your demographic provides the needed focus for your business.
Marketing – Much of the business of buying and selling homes comes from the work of generating leads. In this section, you’ll describe strategies like using social media, print or radio ads, brochures, and bench advertising. You will also want to identify how many leads (anticipated or confirmed) that these strategies have produced. Show the effectiveness of the marketing. Hiring a professional marketing strategist is a sound decision and a legitimate business expense.
SWOT (Strengths, Weakness, Opportunities, Threats) Analysis – This is a beneficial exercise as you write your plan, compare your services and business against each of these terms. For example, your strength might be cold calling, but your weakness is business analysis. An opportunity may be a niche real estate market like working with new immigrants who want to purchase a home but are unsure how to navigate the Canadian market. And finally, an example of a threat could be lumber or construction prices. The SWOT analysis is the most fluid part of your business plan and will likely be a tool you’ll use and tweak often.
Numbers, numbers, numbers – Determine the average commission per sale that you want to make, and then figure out how many homes you will need to sell each month, quarter, year to reach your target financial goal. Remember to be conservative.
Lastly, reviewing your business plan annually lets you see where you are at on your business journey, and it ensures that you’re keeping your eyes fixed on the goals! Looking for professional business plan writers for your business plan? Get in touch with Adept Business Plans (a Canadian business plan company) for a customized quote for your business plan.