5 Steps to Developing Your Real Estate Business Plan — RISMedia

Real estate business plans can cover your entire business or focus on a specific service. They can set an income goal or be used as an evolving monthly work plan. Whichever way you use them, the importance of a real estate business plan is simple: Strategies on paper make ideas come true. This document then acts as a guidance document guiding you on the path to success.

Although it may seem easy, there are goals, strategies, and tactics that need to be identified. You need to know where you are now versus where you want to be. Let’s take a look at the necessary steps you need to follow when writing your first real estate business plan.

Step 1: Initial planning
Start with an executive summary to describe what you are trying to address and the timeline involved in completing the plan. The summary will lead to opportunities or goals that you want to capitalize on.

For example, your summary might look like this:

ABC Realty is an Ohio-based real estate company that specializes in starter homes and condos for the Columbus, Ohio community. ABC Realty home listings offer what new homeowners are looking for when making their first purchase. ABC Realty customers will benefit from the attention to detail and customer service that new homeowners seek throughout the home buying process. Sales should be moderate in the first year and increase significantly in the third year.

Step 2: Understand strategy and tactics
The key elements that underpin each objective will be strategies and tactics. Your strategy will outline the overall goals, messages, and audience. And your tactics will include the initiatives you take to achieve each strategy.

Consider the possibility of marketing your business to a new community. One strategy may be to establish your brand so that potential customers recognize your name. Supportive tactics may include joining a real estate association, attending Chamber of Commerce networking events, advertising in the local newspaper, using social media, analyzing marketing content delivery or the organization of an open day.

Step 3: Assign deadlines
A goal needs to be anchored in a timeframe to create a sense of urgency, but tactics take time. And in some cases, the tactics may be ongoing. Be sure to allocate “X” hours per month, or per quarter, to complete each tactic (eg attending a networking event).

Step 4: Budget management
Don’t forget to consider the costs. As a real estate agent, you are an independent seller. It is important to calculate the expected income and expenses for each year. However, as a one-person team, it’s equally important to outline your day-to-day business operations, identifying where support is needed.

Step 5: Measure your results
Once your plan is complete, assess whether or not you achieved your goal. If not, determine why. It will be a good document to have as a historical reference, leading you away from tactics or strategies that you have deemed unsuccessful.

Remember that if you want to reach a certain level of income or a certain number of transactions, you should consider the different goals that can help you achieve this. An overall business plan is a great way to get started, but targeted plans can help you gain the edge.

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