Real estate business plan: have you ever heard of it?
Choosing to open a real estate agency is an entrepreneurial path that requires specific professional skills, it will certainly not be enough to have only an initial investment capital to start the business. As with many other free professions, the real estate sector also requires study, analysis and skills that cannot be put aside if you want to achieve success.
Undoubtedly useful advice, in order not to risk getting lost in the maze of the endless activities that there would be to follow in the start-up phases, is to build a real real estate business plan.
Are you a real estate agent but have you never heard of a business plan? Do not worry! After reading our tips, you will rush to draft your business plan and wonder how you ever managed to work without it all this time.
In this guide, we will try to give a correct definition of a real estate business plan and explain why having one could increase your company’s chances of success.
Invest in the opening of a real estate agency in Italy
Let’s start by saying that the ways to start a real estate agency in Italy are different, but they can basically be divided into two macro areas: there are those who choose to create a brand from scratch and those who prefer to join an existing brand, thus opening a franchise agency.
It is clear that the two paths are completely different. Opening a real estate agency in franchising rather than in total autonomy completely changes the vision and work activities specifically.
A common denominator and essential point, however, remains that of the business plan, which must be drawn up in a completely specific way and can never be generic and the same for two different real estate agencies.
Before talking about the real estate business plan proper and how much it can help improve a specific professional activity, it is good to specify that if you choose to start a real estate agency in franchising, most of the initial guidelines will already be administered. by the franchisor.
The space for action is therefore considerably limited, but this could also prove to be a pleasant downside for the affiliate entrepreneur who has chosen this way of working. In fact, one of the reasons why you choose to open a franchise is precisely that of the so-called entrepreneurial buffer.
A strong real estate brand, which already exists, prepares itself at 360 ° towards the new affiliate precisely in order not to leave it in disarray, but to follow it with directives that have already previously been tested and developed by others before him, and which have contributed to determining the success of the brand.
This does not mean, however, that each affiliated office does not travel independently: it is understood that the monthly trend is then determined by the work of the individual and the team present in that particular agency.
Do you think you need a business plan in this case too?
Real estate business plan: what it is
Until now, we have only partially anticipated the definition of a real estate business plan, so the time has come to rattle off the question and make it clear what a business plan is and why it could help you achieve professional success.
Someone said that those who fail to set clear goals, with good chances, will fail.
It is therefore easy to understand that it is advisable not only to have a clear idea of where you want to take your business but also and perhaps above all, what actions to take and which ones to avoid in order to achieve the established result in the shortest possible time.
We feel obliged to assert and fully embrace this thesis. Whatever professional activity you are undertaking, it is always advisable to set goals in the short, medium and long term to be able to better monitor the company’s performance.
In the specific case of a real estate agency, the business plan could be written independently, or you could think of turning to professionals in the sector, or rather attentive and more analytical consultants, before developing a plan specifically designed for the dynamics of your company.
A real estate business plan, literally a business model, is a document that contains all the objectives that you have chosen to achieve and all the actions to be taken to achieve a certain result. This, in order not to risk spending energy incorrectly behind objectives that do not lead to real growth of the company and of the individual collaborator.
In fact, it has been tested on different types of business that, by putting in writing a real scheme divided between the actions to be carried out and the timing in which some actions must be carried out, it is more encouraged to carry out that specific action without losing it. sight or risk forgetting about it.
In fact, a recent statistic has shown how much difference in terms of numerical results there is between a company that works through business plans and one that instead operates without a precise and studied organization.
Having a graphic vision of things, in real estate web marketing, is said to help keep the mind trained towards carrying out actions aimed at increasing the business.
In your real estate agency, be it an already started business or a project that is about to take off, it is good that you are able to work following a studied and elaborated business plan.
Naturally, these will be two completely different business models: in the first case, we will study a historical starting from real bases; in the second case, the business plan will be more theoretical and will aim at faster growth objectives, as for any self-respecting start-up.
How to develop a real estate business plan that guides you towards entrepreneurial success
How to create an effective real estate business plan?
We start first by defining the timing within which you want to monitor the progress and growth of your business. The best business models tend to start from one year of activity up to five. It has been estimated that on average, for the activity of a real estate agent, the business plan can be drawn up over a period of three years.
In fact, it is said that in Italy, three years is enough time to be able to achieve success or to understand if you have to change the course and change something within a given business.
Always remember to start with Smart lenses though. What are “SMART” objectives? Anyone would love to achieve success with a snap of their fingers or have that brilliant intuition that will take the company up to the pinnacle of a brilliant career.
A fundamental piece of advice, following the most successful corporate business models, is to set yourself the goal of achieving achievable results, here is the definition of smart objectives.
You need to know what the company’s starting point is when planning a new goal: it is useless to aim to achieve results that are extremely far from what is the business reality from which you are starting.
A practical example could be that relating to the goal on sales assignments that your real estate agency manages to take on average over a period of one month. It would be counterproductive to set as the next objective that of reaching too distant numbers of assignments compared to those that characterize the real average: it would be better to set the goal of raising the bar a little at a time in order to be able to better monitor the trend.
The technique of setting achievable goals has two fundamental advantages:
- Do not get discouraged, setting goals that are too distant from the current trend that is therefore difficult to achieve (this is especially true for your collaborators)
- Improve and modify on the spot what is possibly preventing the achievement of a result, having everything under control more clearly
Slow and steady growth is in fact the best growth a company can hope to experience. The straw fires are destined to go out: the companies that achieve a successful result in a very short time are often the ones that then run out of batteries more or less quickly and get into trouble.
What are the questions that an entrepreneur who chooses to draw up a real estate business plan must ask himself?
- Customer target: who is your agency for? Is there any coherence between supply and demand?
- Turnover: How many sales does your agency need to close monthly to cover out-of-pocket expenses and how much profit remains?
- Staff: do you need more collaborators? Are the employees present sufficiently autonomous or do you need to study professional growth for each of them?
- Advertising: How much do you invest in corporate advertising and what results does it bring you?
- Training and updating: are you adequately continuing to train to always stay up to date and updated about your profession?
- Competition and local market: are you properly studying local competition? Do you know perfectly all the properties for sale at other agencies in your area of expertise?
These listed above are clearly generic questions that might be good for most real estate agencies.
A business model to be drawn up could in fact start from the answers to these questions in order to define from which level you are starting, and go to establish point by point within which timing and implementing which strategies, every single aspect will have to be improved to grow your company.
Basically, if it is an already consolidated business reality, to begin to become familiar with a business plan, it could be summarized in these clear guidelines:
- Sales network
- Financial aspect
- Area market and competition
- Marketing and advertising
- Unexpected and extras
After an accurate and careful preliminary analysis, objectively putting in writing what the starting data are, it will be outlined in an almost automatic way which will be the perfect business model tailored to your company.
Don’t forget the real estate business plan in a drawer
Until now we have focused on the importance of drawing up a real estate business plan and above all on what are the points and ideas from which to start to make the most of this tool.
A useful piece of advice, even if it might sound redundant, is to not forget to consult your business plan after having carried out it with so much effort.
Whether you have turned to a professional or if you have chosen to do it on your own, there is a good chance that due to the hectic life of every day, taken by so many work activities, you may lose sight of what you have worked hard for.
Our advice? Set a monthly reminder in your deadline calendar that will remind you to stop and consult your business plan. If your company is made up of a team of collaborators, it would be a good habit to schedule an extra periodic meeting, perhaps weekly or at most every two weeks, just to pause together on the company’s progress with the business plan in hand.
In this way, the entire agency will take on responsibility and each of your collaborators will have a clear idea of which path they are following.
Clarity, organization, and action: this is what must no longer be missing
Whether you are a successful real estate agent or a novice entrepreneur, the advice to hit the mark with your business must always and in any case be carried out as a mantra to achieve success.
Driven by the passion, by the love for the profession you have chosen and for which you have specialized hard, it is good that you do not forget that every self-respecting entrepreneurial activity will necessarily be characterized by an almost maniacal organization often put in writing, before taking action.
The idea of managing a real estate agency, perhaps correlated by a team of collaborators and a real estate portfolio full of assignments, without having a clear and defined organization, would not lead to anything productive.
Whatever the professional sector in question, it is unthinkable to believe that you can keep up with the many facets of the company without having some sort of guide that reminds you exactly what you need to do and when.
This guide is technical, in jargon, the company business plan, which in the specific case of a real estate agency, is defined by those who already use it, an essential tool.
You cannot imagine driving a ship having only the destination in mind: you will also have to be master of the route to follow to reach the destination.
Do you still think you can make your professional dreams come true without following a real estate business plan?