Steps to Make a Real Estate Business Plan: Tips for Agents
Behind every successful real estate agent is a well-thought-out real estate business plan. When you have a successful real estate agent business plan, it helps keep you organized and develop a strong, sustainable business. When you get started in real estate, a real estate business plan is a commonly overlooked facet. A strong real estate business plan will help you set and accomplish goals, allowing you to be successful in the industry. View this guide as a way to set up your own real estate business plan template.
Create a Mission Statement
The first step in putting together your real estate business plan is to create a mission statement. How do you want to connect to potential customers? How can you pique their interest and get them to want to know more? The best mission statements are short, simple, and answer the question “what does my business do?”
When you think about your mission statement, answer that key question. You also want to make this statement personal to you and your company. If you’re able to not only tell customers what you do but also connect with them, then you have a winning mission statement. It’s also the first step in creating a successful real estate agent business plan. For example, The CE Shop’s mission statement is “to provide an educational experience that enhances the lives of our professionals and the communities they serve.” This mission statement tells readers that we’re a community-focused education company looking to enrich the lives of our students and those they’ll serve. Your mission statement should similarly convey who you are and what you bring to the proverbial table.
Now that you have this foundation in place, you can start building out your real estate business plan template.
The one word to keep in mind with your real estate business plan is “adapt.” Adaptability is crucial for any business to succeed but especially in the real estate industry, where things can change with little or no notice.
Perform a S.W.O.T. Analysis
Now that you have your winning mission statement, the next step in your real estate business plan is to perform a S.W.O.T. analysis. You may have just asked yourself, “What the heck is that?” S.W.O.T. is an acronym that stands for strengths, weaknesses, opportunities, & threats. Completing a S.W.O.T. analysis is crucial to establishing a real estate business plan as it forces you to examine your business, identify your competitors, and find opportunities for you to succeed. We recommend that your real estate agent business plan calls for a S.W.O.T. analysis to be performed on an annual basis. Enacting this analysis regularly will allow you to keep a clear understanding of how your business is doing, what you’re doing well, and where you can improve.
Establish S.M.A.R.T. Goals
Only after you complete a S.W.O.T. analysis can your real estate business plan have goals. But you shouldn’t set goals for the sake of having them. Just like your real estate agent business plan, these goals need to be achievable and realistic. In other words, you need to establish S.M.A.R.T. goals. What does S.M.A.R.T. mean? It’s another acronym, this time describing optimal goal-setting methodology. Your goals should be specific, measurable, attainable, relevant, and time-bound.
As you consider what S.M.A.R.T. goals to set, ask yourself the following: Where do you want you and your business to be in six months, both in terms of finances and revenue? What is the plan to make it happen? What thresholds does your business need to reach? How can you secure new clientele? Are you delivering on your business’s core values? Consider both short- and long-term goals. We recommend you reassess these goals on an annual basis. This strategy also allows you to celebrate your wins and adjust course for goals you are not meeting.
Develop a Strategic Plan
Once you have established your S.M.A.R.T. goals, the next step on your real estate business plan is to develop a strategic path to achieve those goals. This plan should be a written document that you can edit on an ongoing basis as needed. In other words, your strategic plan shouldn’t be written in stone. As you reevaluate your S.M.A.R.T. goals, you should also reevaluate your strategic plan. It doesn’t make much sense to keep the same plan you set for new goals. As you follow each step in this real estate business plan template, remember that you want to practice adaptability. Since you have that focus, you’ll be prepared for the unexpected, which will give you a leg up on your competition. In other words, you won’t be caught off guard if you’re always ready to pivot.
Evaluate a Time Frame
The best way to have a successful real estate business plan is to put deadlines in place. When you establish a time frame to accomplish the tasks and goals in your business plan, you will keep things moving forward. Deadlines also hold you and your employees accountable. For example, if you are an agent and you want to upgrade your license by the end of the year, then you’ll know that you have to enact certain steps before the clock strikes midnight on December 31st to be successful, thus creating a sense of accountability.
Identify a Target Audience
You have your analysis, goals, and you’ve drawn a path to make your dreams come to life. Next in your real estate business plan is to identify a target audience. You need to answer this key question as you put together your real estate agent business plan: What type of audience are you looking for? How specific or broad is your audience?Here are some examples of potential target audiences:
- First-time homebuyers
- Residents in specific cities/regions of your state
- Residents across the whole state
Defining your target audience is important because it impacts your marketing strategy. It can also impact your goals. For example, agents selling luxury homes may need to sell fewer homes to meet their financial goals, but they will also likely need to spend more money on marketing.
Identify Financial Needs
No real estate business plan is complete if you don’t identify your financial needs. What do you need to make to be successful as a real estate business? If you’re not making money, you need to reevaluate your business plan for real estate. Earning revenue is the ultimate goal of any business, and the best real estate business plans lay all of that out. That’s why it’s so crucial to have a real estate business plan template now. As for identifying your financial needs, it’s crucial to know your projected income, expenses, and other costs. Keep good documentation and revisit your financial goals on a regular basis to ensure you’re heading in the right direction.
Determine Systems and Processes
This part of the real estate business plan comes with experience. When you first create a real estate agent business plan, it will be more of a “learn as you go” experience. At this stage, it might help to talk with people you trust who have been in the industry for a while. You can lean on them and ask questions. Your real estate business plan should establish specific systems and processes that you will need to achieve your goals and follow through with your plan. For example, CRM systems can be incredibly useful to organize a large network, so consider what your business needs to function smoothly, then ask trusted members of the industry how they tackle these processes.
Developing Your Real Estate Business Plan
When you get to this point in your real estate career, it’s both exciting and overwhelming. You want to jump out of the gates and prove that your company is the best. That’s why a real estate agent business plan is so important; it helps to keep you grounded. Your real estate business plan should be measurable and require you to take action to meet your goals. If you’d like a printable resource as you create your real estate business plan, look no further - we’ve created one for you here.