A real estate agency or real estate brokerage business is one of the best ways of getting paid for your expertise in the real estate industry.
If you have a thorough knowledge of the market, are a brilliant negotiator, and can think on your feet then being a real estate agent might be the right career for you.
Research says the global real estate agency and brokerage market are expected to grow from $960.12 billion in 2020 to $1008.95 billion in 2021 at a compound annual growth rate (CAGR) of 5.1%. Also, the market is expected to reach $1351.1 billion in 2025 at a CAGR of 8%.
The above figure suggests It is a great market to be in, but you need a well-designed business plan to succeed as a real estate agent. A business plan can help you in having a clear strategy and also in keeping a track of your progress.
But what else can a business plan do for your agency or brokerage firm, and how to write one? Read on to find out.
Things to Consider Before Writing a Real Estate Agency Business Plan
Find a way to get leads
The majority of your leads, at least at the beginning of your career would come from constant effort and a variety of sources. So before getting started you'll have to figure out all the possible ways of generating leads.
Make a networking plan
Having a network comprising of your customers, businessmen, even your competitors is necessary for a real estate agent. Because you never know from where you'll get your next big client.
Hence, figuring out a networking strategy is important.
Set up your website
Nowadays a lot of people look for real estate services online. Hence, it makes it important for you to set up a website for your business.
Making a website also contributes towards building your credibility and brand image. Hence, building an optimized and active website can do wonders for your business.
Be prepared for changes in the industry
The real estate agency is changing at a rapid pace. Everything from changes in the economy, people's buying behavior and income has a major impact on the real estate market. Hence, it is important for you to have a strategy to deal with such changes.
One of the simplest way to do so, is to have a dynamic and customizable real estate business plan. It helps you deal with changes in a smooth and effective way.
How a Business Plan can Help You?
As a real estate agent, clear business goals and a constantly evolving way of doing business can be extremely profitable for your business. Apart from that, networking is a key aspect of a real estate agent's business.
A professional business plan can help you manage all of the above efficiently without any hassles.
Having a plan makes managing your business easier and lets you focus on the more pressing concerns of a business.
Moreover, it gives you a competitive edge over those who jump right in, without any plan.
Real Estate Agency Business Plan Outline
This is the standard real estate agency business plan outline which will cover all important sections that you should include in your business plan.
- Executive Summary
- Products and Services
- Management Team
- Success Factors
- Financial Summary
- 3 Year profit forecast
- Company Summary
- Start-up Summary
- Startup cost
- Funding Required
- Products and Services
- Our business offering is listed below:
- Market Analysis
- Industry Analysis
- Market Trends
- Target Market
- Strategy & Implementations
- Sales Strategy
- Advertising Strategy
- Targeted Cold Calls
- Pricing Strategy
- Sales Forecast
- Management Summary
- Hiring Plan
- Financial Plan
- Important Assumptions
- Brake-even Analysis
- Projected Profit and Loss
- Profit Yearly
- Gross Margin Yearly
- Projected Cash Flow
- Projected Balance Sheet
- Business Ratios
How to Write a Real Estate Agency Business Plan?
A business plan should be clear-cut and ever-changing. It should have goals, but also be flexible at the same time.
Moreover, it should be customizable as per your target market and location. You can write such a plan in many ways.
Although there are several changing and fixed aspects of a real estate agent's business plan, there are certain essential areas that should be included to write a good business plan.
They are as follows:
1. Executive Summary
The executive summary section sums up what your entire business idea stands for. It is a brief overview of all of your business's functions, including finances, target audience, operations, marketing, sales, etc.
This section, if written properly, can help you get funded as it presents your idea to the investors in a precise way and helps you gain their confidence.
2. Company Summary
This section basically consists of all the information about your agency's history, its current situation, the idea behind its existence, and also the finances and funding it requires for becoming profitable.
3. Products and Services
In this product and services section, you'll define your niche. Having a niche in real estate helps you get a better knowledge of the market and better deals in return. It also helps you meet the right people and the right customers.
As a real estate agency, you can decide whether you'll deal with office spaces, residential spaces, rentals or buying, and selling, etc. Working with a specific set of customers most of the time helps you stay at the top of your game in a real estate market.
4. Market Analysis
A thorough and ongoing market analysis helps you know the market trends and your target audience better. It helps you stay updated with the demands of your customers and how you can fulfill them in the best way possible.
Not just that, it also helps you in knowing where you stand in the market, when you need to change your business model with a changing market and when you need to upskill to stay relevant as a real estate agent.
5. Strategy and implementation
After you are done analyzing the market, writing this section would be a cakewalk. As you are familiar with the market you can formulate the best strategy to thrive in it.
As a real estate agency having a good advertising strategy, sales strategy, and essentially a good pricing strategy is of utmost importance.
6. Operations Plan
The operations plan section in your business plan includes the day-to-day functioning of your company as well as your goals and strategies to achieve them.
It is an ever-changing section and has to be tweaked as per the demands of the industry. Breaking your goal down into smaller milestones in this section is an effective way of writing it.
7. Financial Plan
A financial plan decides whether your agency would succeed or not. It prevents you from having mismanaged finances, a dearth of funds and also helps you in managing the cash inflow of your business.
Business Plan Summary
A business plan can not only help you with the management of your business but also work as a road map to success.
A real estate agency's cash inflow is on the irregular side, but a business plan can help you thrive with that too. Having a plan gives you a clear idea of the functioning as well as the spending of your business.
After getting started with Upmetrics, you can copy this sample real estate agent business plan template into your business plan and modify the required information and download your real estate agent business plan pdf or doc file.
It's the fastest and easiest way to start writing your business plan.
So, what are you waiting for! Start planning
Ready to Start Your Planning?
Now that you know how to write a business plan, it's time to create one for you.
Remember that problem and market analysis are essential, but implementation is what counts. Go through the process explained in this guide to start planning for your business.
We have created Upmetrics — business plan software to simplify the process of business planning.
Our business plan builder allows you to write and customize your business plan. Our sample business plans and inbuilt help tips will help you to get started with your writing even if you are no expert. Our business plan sections and charts will make your document visually attractive.
Our financial forecasting module will create all the essential reports automatically. You need to enter numbers, and the application will do all the math to generate all your financial statements. Later you can embed those reports into your business plan.
After completing your business plan, you can download your business plan in PDF or DOC file with Upmetrics. You can also share it online with investors just by a quick link.
Customize your Business Plan
All businesses are different. So, don't hesitate to customize your business plan according to your requirements.
Even though our sample business plans are to help you create the perfect presentation for your clients and investors, it is finally up to you to decide how you're going to present your ideas in the best light.
Business Planning Resources
We have plenty of free business planning resources available to help you with your planning. You can download our resources to learn all about business planning.