Ultimate Guide: 11 Points to Writing a Real Estate Business Plan
Failing to plan is planning to fail. Your business plan is the GPS for success. Instead of wandering, push towards your goals and objectives with clear direction. Developing a real estate business plan is critical to forming a healthy and sustainable business.
A real estate business plan is an important step for any real estate agent looking to build a successful career in the industry. While there is no one-size-fits-all approach, there are certain key elements that should be included in any plan. First and foremost, it is essential to set clear goals and objectives.
A study of 2,877 business owners found that companies are twice as likely to secure loans and funding if they have a business plan and 75% more likely to grow. Another study showed that 64% of companies who created a plan increased their businesses, compared to 43% of companies that hadn't yet finished a plan.
Your own business plan is an essential tool for any business, small or large. Real estate agents use business plans to map their marketing strategies, target their advertising, and track their progress. A business plan helps agents set goals and stay on track throughout the year. It is also a valuable reference point when meeting with clients and potential investors.
While there are many different ways to create a real estate business plan, certain elements should be included in every scenario. These elements include an overview of the business, the company's goals and objectives, a marketing strategy, and a financial analysis. By having these key components, companies can ensure that their real estate business plan is comprehensive and will help them achieve their desired results.
Harvard Business Review (HBR) stated that the chances of success rose by 12% for those that spent no longer than three months on their plan . With any longer proving futile. So, how do you write a business plan for your real estate business without getting bogged down in the details? In this post, we'll look at actionable steps agents and brokers can take to outline, execute and measure the performance of a business plan.
As a real estate agent, you know that the housing market can be unpredictable. You need to be prepared for the ups and downs of the market, and one way to do that is to have a business plan. Your business plan will help you set goals and track your progress. It will also force you to think about the costs of running your business and how you will generate leads. There are many online resources that can help you write a business plan, but the most important thing is to get started. By taking the time to write a plan, you will ensure that your business is ready for whatever the housing market throws your way.
What is a real estate business plan?
A business plan is a written document that captures the future of your business. It details what you plan and how you plan to do it.
Real estate business plans are essential for two reasons. First, they provide a road map for agents to follow as they work to build their businesses. Second, they force agents to think through all the crucial aspects of their business, such as their marketing efforts, target market, and financial goals.
By taking the time to write a Real Estate Business Plan, agents can ensure that they are taking all the necessary steps to build a successful business.
A Real Estate Business Plan is an essential tool for any business, whether you are just starting or have been in business for years. There are many benefits to creating a Real Estate Business Plan, including:
- Having a Real Estate Business Plan forces you to take a step back and assess your business as a whole. It allows you to see where your business stands, and identify any areas that need improvement.
- A Real Estate Business Plan provides a roadmap for your business. It can help you to set goals and track your progress over time.
- A Real Estate Business Plan can help secure your business funding. If you seek investment from Venture Capitalists or Banks, they will often require a copy of your business plan before considering your request.
- A Real Estate Business Plan can help you to attract and retain top talent. If you are looking to hire employees or contractors, having a well-crafted business plan can be a significant selling point.
- A Real Estate Business Plan can be a valuable tool for managing day-to-day operations. A clear and concise plan can help you better decide where to allocate resources and how to utilize your team's time and talents best.
- A Real Estate Business Plan can help you to measure and track your marketing efforts. By setting specific goals and objectives, you can more effectively gauge the success of your marketing campaigns and make necessary adjustments along the way.
- A Real Estate Business Plan can serve as a valuable sales tool. A professional business plan can give you a significant competitive advantage if you are looking to sell properties or convert leads into clients.
- A Real Estate Business Plan helps to keep you organized and on track. Trying to run a successful real estate business without a plan is like trying to drive from New York to Los Angeles without a map - chances are, you'll get lost along the way!
Having a Real Estate Business Plan gives you credibility in the eyes of others. If you are working with other professionals such as lenders, appraisers, or title companies, having a well-developed business plan shows that you are serious about your business and increases the likelihood that they will want to work with you in the future.
Last but not least, creating a Real Estate Business Plan is empowering! Taking the time to develop a comprehensive plan shows that you believe in yourself and your business and sets the foundation for long-term success.
Precisely, it conveys your business goals, the strategies and tactics you'll use to achieve them, potential problems you may run into along the way and how to overcome them, roles and responsibilities, SWOT analysis, and measurement strategies.
What should a real estate business plan include?
Real estate business plans are different from traditional business plans.
Real estate agents need to focus on their target market, their uniqueness, and how they will succeed against the competition. Real estate business plans should also include an analysis of the current market conditions and the potential for growth in the future. In addition, real estate agents should outline their marketing strategy and have a budget for advertising and promotions. By taking the time to create a comprehensive business plan, real estate agents can increase their chances of success in this competitive industry.
Real estate business plans vary in length and complexity, but all should include the following elements:
- An overview of the real estate market
- A description of the agent's target market
- A marketing plan
- A financial plan
- A discussion of the agent's competitive advantages
Real estate business plans provide a roadmap for agents to achieve their goals. They should include specific strategies for generating leads, marketing properties, and closing deals. The business plan should also outline the agent's budget and target income. Additionally, the real estate business plan should set forth a schedule for prospecting, listing appointments, and open houses. By following a real estate business plan, agents can increase their chances of success in real estate.
How do you assemble a real estate business plan?
A business plan is essential for any real estate business, whether you're just starting out or have been in the industry for years. It provides a roadmap for your business, laying out your goals and strategies for achieving them. But how do you go about assembling a business plan?
First, you'll need to identify your target market. Who are you trying to reach with your real estate business? Once you know your target market, you can start developing your marketing strategy. What methods will you use to get potential clients? How will you differentiate yourself from other real estate businesses in your area?
Next, you'll need to put together a financial plan. What are your revenue sources? How much money do you expect to bring in each month? What are your expenses? How much do you need to save for a rainy day? A clear financial picture will help you make sound decisions for your business.
Lastly, don't forget to include a personal development plan. What skills do you need to improve to succeed in the real estate business? What classes or training programs can you take to close more deals and earn more commissions? A well-rounded business plan will help ensure your real estate business is booming.
Writing a Real Estate Business Plan in 11 Easy Steps
1. write a detailed business description.
There's a story and context behind your business, and the business description is where that should shine. Write a brief overview of your Real Estate business. Include your business goals and how you plan on achieving them. Then create a description of your company, including its history, structure, and other relevant information.
The mission statement is part of the business description — which helps keep the rest on the track. Many mission statements follow a familiar format, like:
"To be the best, full-service Real Estate company in the Triangle and to enhance our quality of life through active community involvement.".
In a microstudy of 200 mission statements, it was found that mission statements most often talk about the company's dedication to customers (85%), shareholders (37%), employees (21%), and society (3%).
As well as a defined mission statement, make sure to include:
- When you were founded
- Where you are located
- Who the leaders are
- Special advantages/partnerships
- Market opportunities
- Legal structure
A very brief real estate business description example is:
"Norris & Company Real Estate is Vero Beach's premier upscale real estate firm. They specialize in luxury waterfront homes and condominiums, particularly in Vero Beach and Indian River County, FL."
2. Market Analysis
Research the Real Estate market in your area and identify any trends or opportunities. Include this information in your business plan.
Real estate agents must constantly be aware of the market conditions in their area to serve their clients best. Agents can provide expert guidance and advice by understanding the trends and opportunities.
When writing your Real Estate business plan, including a comprehensive analysis of the market conditions in your area. It will help you better understand your client's needs and identify potential opportunities.
Your market analysis should include:
- An overview of the Real Estate market in your area
- Identification of any trends or opportunities
- An explanation of how you will address these trends or options in your business plan
By including this information in your Real Estate business plan, you will be able to show potential clients that you are knowledgeable and prepared to help them navigate the Real Estate market.
3. Perform a SWOT Analysis
A SWOT analysis is a technique used to identify and define several key characteristics that will impact your business: Strengths, Weaknesses, Opportunities, and Threats.
Think of it this way:
Strengths and Weaknesses are internal. Threats and Opportunities are external.
An analysis can be as simple as making lists of items under each category.
For example, a strength could be a solid and experienced sales team, while a weakness might be that your business is expensive to run because you haven't nurtured supplier relations.
It could be as simple as filling four sheets of paper with descriptions of the strengths, weaknesses, opportunities, and threats — collaboratively or alone. To make the answers clearer and the exercise more manageable, you can use questions like:
- What do our competitors do better than us? Threat .
- What's our unique selling point? Strength .
- Why have customers churned in the past? Weakness .
- Which markets are underserved in your territory? Opportunities .
4. List Your #1 SMART Goal
It's great to be ambitious, but focusing on one goal makes it easier to stay motivated, track progress, and see the measurable effect of achieving it. Even better if that goal is a SMART Specific, Measurable, Attainable, Realistic, and Timed – goal.
Examples of SMART goals you might set for your growing real estate business are:
- Build a new real estate website in the next three months
- Hire and onboard three new SDRs in the next six months
- Increase monthly leads by 50% by next year
- Sell ten houses in the Dallas metro area in the next 30 days.
Pick one at a time and focus on it! Sticking to an achievable goal with a time limit makes it more likely to come to fruition. And, even just writing it down makes you 42% more likely to attain it.
5. Identify Your Market Niche
Before setting out your facts and figures, it's essential to spotlight your target market and how you'll serve this niche. It helps you decide what's realistic and feasible to achieve in your business plan.
Determining your market niche is a fancier way of saying: Who are your services best suited to? While honing in on a narrow target seems a little exclusionary, niche marketing can save you time, effort, and money on marketing.
One tool to help you define your market is a buyer persona. A persona is a fictional typification of your ideal customer, with information that enables you to steer your sales and marketing in the right direction.
It's essential to assess your niche and ensure it is consistent with the market in your area.
For example, if you've decided to focus on first-time buyers, do some research to look at relevant stats and figures:
- What percentage of sales in your market were to first-time buyers in the last 12–14 months?
- What was the average sales price to first-time buyers?
Also, assess how competitive this market is:
- Are you the only agent catering to the young first-timer?
- Are you competing with well-known heavy hitters?
A competitive SEO audit can be a helpful starting point in finding your competitors in the online space, where almost all leads will turn at some point in the buying process.
6. Implementation Plan
Before you can begin implementing your real estate business plan, you must clearly understand your goals and objectives. What are you trying to achieve with your business? Are you looking to buy and hold properties for long-term appreciation, or are you more interested in flipping houses for a quick profit?
Once you have a good idea of your goals, you can start to put together a plan for how to achieve them. For example, if you're interested in buying and holding properties, you'll need to generate enough income from rentals to cover the mortgage and other expenses. If you're more interested in flipping properties, you'll need to find motivated sellers and then negotiate deals that provide you with a healthy profit margin.
Regardless of your goals, careful planning is essential for success in the real estate business.
Breaking your goals into action steps makes them more tangible and ensures you're making strides to fulfill them. Here are some keys to converting your real estate business plan into actual business practices.
7. Monitoring & Evaluation
Successful real estate businesses have a plan to monitor and evaluate their progress. This plan includes setting clear goals, measuring progress against those goals, and making adjustments as needed. Without this proactive approach, it can be challenging to identify areas of improvement or stagnation.
Additionally, a well-executed monitoring and evaluation plan can help to keep employees focused and on track. By regularly assessing performance and goal progress, businesses can ensure that they are making the most of their resources and achieving their desired results. Ultimately, a sound monitoring and evaluation plan are crucial for any real estate business that wants to stay ahead of the competition.
8. Risk Management
Real estate investing comes with a certain amount of risk. But with a well-thought-out risk management strategy, you can minimize the potential for loss and maximize your chances for success.
One of the most critical aspects of risk management is diversification. Investing in various property types in different markets spreads your risk and increases your chances of finding a profitable investment.
Another critical element of risk management has a solid business plan. Thoughtfully consider each step of the real estate investing process, from finding deals to financing them to managing the properties. Have a clear exit strategy for each investment to know when to sell or refinance. And always remember to stay within your comfort level; don't let greed or fear make decisions for you.
With careful planning and discipline, you can create a real estate investment portfolio that withstands market fluctuations and generates long-term wealth.
9. Financial Plan
Having a sound financial plan for your business is essential. To assist you, we've created spreadsheets you can use to estimate goals, income, and expenses. You will find specific instructions in the spreadsheets, but here are some guidelines for creating a financial plan:
To create your plan, determine what your expenses will be.
Here are three main areas your expenses may fall into:
- Licensing: These expenses will include training, state exam fees, etc.
- Personal: This can consist of your wardrobe, technology fees (like computer and phone), and car fees.
- Business: Business expenses include broker fees, website and MLS fees, marketing, advertising, etc.
Our template divides these expenses into the startup and yearly costs to help you discern which payments will recur and which are one-time-only. Here's an example of what your startup expenses might look like.
Yearly expenses might include recurring costs like office rent, electricity bills, and annual license fees.
Estimating income is the biggest concern for most new agents. To do this, you must decide how much money you need to make in your first year and how much you would like that figure to grow. You will also need to research some basic statistics for your market, like the average sale price for homes.
Use our business plan template to help calculate these numbers.
Transactions and Leads
To meet your income goals and cover expenses, you'll need to conduct a certain number of transactions. And, to complete a certain number of transactions, you'll need to work a set number of leads. There's no need to work this figure out by hand.
Our template will automatically calculate the number of transactions and leads you will probably need to meet your goals. Still, you will have to assess these figures to decide whether they are reasonable. For example, if you plan to work part-time as an agent in your first year but need to close 20 transactions to meet your goals, you are unlikely to have enough time.
10. Create a Personal Development Plan
A personal development plan is an essential tool for any real estate business. By taking the time to assess your strengths and weaknesses, set goals, and create a roadmap for success, you can ensure that your business is on track to reach its full potential. While it may seem daunting, creating a personal development plan is simple.
Start by taking stock of your current situation. What are your strengths and weaknesses? What are your goals for the future? Once you clearly understand where you are starting, you can begin to map out a plan of action. Set realistic goals and create a timeline for achieving them. Put together a resources list and ensure you have everything you need to reach your goals. Finally, implement your plan and monitor your progress along the way.
Remember, your development plan should be flexible and adapt as your needs change over time. With some planning and effort, you can create a roadmap for success that will help you achieve your long-term goals in the real estate business.
11. Write an Executive Summary that Captures the Vision
Your executive summary is an anchor point you can use to understand the overall goals, cement the parameters of your target market, and make decisions aligned with your plan. It's also a way to get inspired by your original vision.
For real estate, it would include points on:
- Target neighborhoods and price ranges
- Target clients and a brief description of the persona
- Brief marketing plan overview
- Market threats and opportunities
Think of the executive summary as the section of your business plan you would explain to a friend a football game when asked how you plan to make money as an agent or broker in your local town/ city or state.
Note: due to the specific details in the executive summary, this part of the business is typically one of the last completed items.
Real Estate Business Plan Template
If you're considering starting a real estate business, you'll need to create a business plan template. Here's a basic template that you can use to get started. Remember that your business plan should be tailored to your specific business and industry.
- Executive Summary
The executive summary is a brief overview of your business plan. It should include your company's mission statement and an overview of your products or services, target market, and growth strategy.
- Company Description
This section will provide an overview of your company, including its history, structure, and team. Be sure to include information on your company culture and values.
- Mission statement
In this section, you will summarize the reason for being and the guiding principles of your organization. For example: "We are a nonprofit that provides free legal aid to those in need." You can also provide a brief overview of what we want them (the users) to come into contact with.
Why should they care about our mission or message by telling them why it is vital to their lives now and later down the line?
- Company goals
This section will provide a high-level overview of your company's top business goals for its first years in operation.
- Market Analysis
In this section, you will need to analyze your target market thoroughly. It should include information on your customers, your competition, and the overall industry.
- Product or Service
In this section, you will need to describe your product or service. Be sure to include information on your pricing strategy and any unique features or benefits your product or service offers.
- Marketing and Sales Strategy
In this section, you will need to outline your marketing and sales strategy. It should include information on how you plan to generate leads and convert them into customers.
- Operational Plan
This section will need to provide an overview of your business operations. It should include your production process and distribution and fulfillment strategy.
This section will briefly describe what your company offers to customers.
- Target customer
To effectively reach the people we want as customers, you must provide a clear overview of who they are and how your product or service can benefit them. In this section, I'll go over some questions worth asking yourself when determining who your potential clients may be.
- Best Practices
Write out your ideal practices for how you'll deal with qualified leads versus unqualified leads, how quickly you'll follow up with interested parties, your methods for helping a leader throughout the final steps of the sales process, and how you'll stay in touch with customers after papers have been signed.
- Financial Plan
In this section, you will need to provide detailed financial information for your business. It should include your income, balance, and cash flow statements. The following will include startup expenses, assets, liabilities, capital, break-even analysis, and loan repayment.
- Exit Strategy
This section will need to provide an overview of your exit strategy. It should include information on how you plan to sell or exit your business in the future.
Individual Agent Real Estate Business Plan
Real estate agents need a business plan like any other entrepreneur. A real estate business plan outlines your goals, strategies, and how you plan on achieving them. It is essential to have a business plan because it will help you stay focused and on track. Real estate is a competitive industry, so you need to be able to stand out from the rest.
A business plan will also be helpful if you ever need to seek funding for your business. Investors and lenders will want to see that you have a well-thought-out plan before they give you money.
Creating a Real Estate Business Plan is essential if you want to build a successful career in real estate. With our easy-to-use template, you can get started today and be on your way to achieving your long-term goals.
There are many benefits to creating a Real Estate Business Plan, including:
- Clarifying your goals and strategies
- Mapping out a clear road map for your business
- Identifying potential obstacles and solutions
- Helping you stay organized and on track
- Increasing your chances of success
So, if you are considering starting a real estate business, sit down and write a business plan. It will be worth it in the long run!
Real Estate Team Business Plan
Before you start your real estate team, it's essential to have a business plan in place. It will help you define your goals, map your strategies, and track your progress over time. While there is no one-size-fits-all approach to creating a business plan, certain key elements should be included. Here are a few of the most important things to keep in mind:
- Your team's mission statement: What sets your team apart from the competition? Why do you exist?
- Your target market: Who are you trying to reach with your services? What needs do they have that you can address?
- Your marketing strategy: How will you get your target market and communicate the benefits of working with your team?
- Your financial goals: How much revenue do you hope to generate? What are your expenses? How will you fund your business?
By thoughtfully developing your real estate team business plan, you'll increase your chances of success in an increasingly competitive industry.
Real Estate Brokerage Business Plan
A real estate brokerage business plan is a document that outlines the goals, strategies, and financial projections of a real estate brokerage business . It should include an executive summary, market analysis, business model, operational plan, and financial plan. The executive summary should briefly describe the company, its target market, and its competitive advantages. The market analysis should assess the size and growth potential of the target market.
The business model should describe how the real estate brokerage plans to generate revenue. The operational plan should outline the business's day-to-day operations, including staffing and marketing initiatives. Finally, the financial plan should provide detailed information on the anticipated costs and revenues of the company. A well-crafted real estate brokerage business plan can be valuable for attracting investors and achieving long-term success.
Remember that your business plan is a living document that should be updated as your company grows and evolves. Regularly reviewing and revising your business plan ensures that your real estate brokerage is always moving in the right direction.
Ready. Set. Plan
Whether you've got a ready-to-execute business plan or it's still being drafted, the most important thing is to start now — and fast.
At its core, a real estate business plan should outline the steps necessary to achieve specific goals, such as increasing sales or expanding into new markets. It should also identify potential obstacles preventing the business from achieving its objectives. By taking the time to create a comprehensive business plan, real estate businesses can increase their chances of weathering storms and coming out on top in the long run.
A business plan puts you on a clear track that makes your business 75% more likely to grow.
By following the above points, you'll be well on writing a comprehensive Real Estate Business Plan.
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Real Estate | How To
How to Write a Real Estate Business Plan (+ Free Template)
Published June 30, 2023
Published Jun 30, 2023
REVIEWED BY: Gina Baker
WRITTEN BY: Jealie Dacanay
This article is part of a larger series on How to Become a Real Estate Agent .
- 1 Write Your Mission Statement
- 2 Conduct a SWOT Analysis
- 3 Set Specific & Measurable Goals
- 4 Plan Your Marketing Strategies & Tactics
- 5 Create a Lead Generation & Nurturing Strategy
- 6 Calculate Your Income Goal
- 7 Set Times to Revisit Your Business Plan
- 8 Why Agents Need a Real Estate Business Plan
- 9 Real Estate Business Plan Examples & Templates
- 10 Bottom Line
- 11 Frequently Asked Questions (FAQs)
A real estate business plan lays the groundwork and provides direction on income targets, marketing tactics, goal setting, lead generation, and an overview of your industry’s competition. It describes your company’s mission statement in detail and assesses your SWOT (strengths, weaknesses, opportunities, and threats) as an organization. Business plans should include measurable goals and financial projections that you can review periodically throughout the year to ensure you meet your goals.
Continue reading to see real estate business plan examples and discover how to write a real estate business plan. Start by making your own by downloading and using the free real estate business plan template we’ve provided below.
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Real Estate Business Plan Template
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1. Write Your Mission Statement
Every real estate agent’s business plan should begin with a mission statement, identifying your values and why your business exists. Your mission statement serves as the guide to achieving your ultimate business objective. When you create a solid clear mission statement, all other items identified in your realtor business plan should be aimed at fulfilling this statement.
Compass’ mission statement: “Our mission is to help everyone find their place in the world.” (Source: Compass )
Your mission statement should identify your target audience, what product or service you provide, and what makes your business distinct. As seen in the example above, a powerful mission statement should be short and concise but sums up a business objective.
Let’s take Compass’ mission statement above as an example: “Our mission is to help everyone find their place in the world.” The statement identifies what the company offers, for what reasons, and who it benefits.
2. Conduct a SWOT Analysis
SWOT is an acronym that stands for a business’ strengths, weaknesses, opportunities, and threats. The primary objective of these four elements is to assess a business by evaluating internal and external factors that can drive decision-making and help you make more money . Conducting a SWOT analysis as you develop your business plan for real estate uncovers opportunities to differentiate yourself from the massive competition currently on the market.
Strengths & Weaknesses
Strengths and weaknesses are internal parts of your organization. Strengths identify what product or services you provide better than others, your access to resources, and items that benefit your customers. Weaknesses are items that need improvement, lack of resources, or what your competition does better. These are items within your control to change because you can convert a weakness into a strength.
See the example below if “Agent X” was doing their SWOT analysis:
Opportunities & Threats
External factors drive opportunities and threats and are areas you can take advantage of to benefit your business. Examples of opportunities can be shifts in the current marketplace, emerging trends you can capitalize on, features that competitors lack, or even changes with your competitors. Threats, on the other hand, are anything that can negatively impact your business. You don’t have control over changing the opportunities or threats, but you can develop a practice to anticipate and protect your business against the threats.
The opportunities and threats for “Agent X” would be:
When you complete your SWOT analysis, use it as a guide when creating strategies to meet your business objectives. To gain the most benefit from creating a SWOT analysis, make sure you are being realistic about your business and evaluating it in its present state. You don’t want to be unrealistic by listing strengths or opportunities that don’t exist yet, and you want to allocate time and money to the most impactful solution to your business issues.
If “Agent X” completed the above SWOT analysis, a few strategies they could derive would be:
- Incentivize agents to keep them at the brokerage for longer
- Implement a technology-based key machine to reduce lost keys and keep the team accountable
- Find a competitive advantage against competing brokerages and use that in marketing messages
Zillow agent finder (Source: Zillow )
To help agents locate other brokerages operating in your preferred market, agents can use Zillow’s agent finder page as a research tool to see which agents or brokerages are operating in a specific area. You can find an agent by location, name, specialty, and language. Once you click on a Zillow profile , you can read their reviews, see their team members, contact and website information, and property listings. Take a deep dive into your competitor profiles and can use the information to implement strategies within your own business.
Read how our experts feel about this real estate lead generation company in our Zillow Premier Agent review .
3. Set Specific & Measurable Goals
You’re ready to set some business goals after clearly defining your mission statement and SWOT analysis. Goals can help set the tone to increase your performance and drive your business in the right direction. Your goals should have a definitive way to show progress, which can be a prime motivator to keep you on track to achieving them.
Each goal should follow a pattern to identify set criteria. This will ensure that your daily efforts are performed to meet business objectives within a set period. A way to do this is by using SMART goals:
Examples of SMART goals for agents or brokerages:
- Increase closed transactions by 20% to a total of 150 deals within the next year
- I will ask all closed clients for a referral and review within 30 days of closing the deal
Goals can be split into short-term and long-term goals. Short-term goal lengths vary between days and weeks but do not exceed six months. Short-term goals can also be worked on simultaneously with long-term goals. Long-term goals can take up to six months or more to complete and require careful planning and perseverance. A mix of short-term and long-term goals will help you maintain motivation.
All goals are equally important; however, success will stem from how you prioritize each one. Slowly add on additional goals as you have the capacity and feel comfortable with the current progress of your current set of goals. Without identifying your business goals, you’ll leave your results up to luck to attain your business objectives.
4. Plan Your Marketing Strategies & Tactics
Developing marketing strategies and tactics and implementing them help you identify and locate your current value proposition in the real estate industry, along with specific timelines for execution. In addition to determining your overall business objectives and goals, your marketing strategy and plan should include the following:
- Pinpoint general marketing goals
- Estimate projected marketing budget
- Know your geographic farm area data and identify your target niche audience
- Analyze market competition
- Identify your unique selling proposition
- Establish a timeline and set your plan in motion
- Track your progress and readjust as needed
While a marketing strategy identifies the overall marketing goals of your business, developing marketing tactics will help you achieve those individual goals. They can include referral business tactics, retention efforts, and ways to acquire new customers. For example, you can offer incentives to anyone who refers your business, or you can implement new email drip campaigns to help increase lead conversion rates.
These tactics should have set key performance indicators (KPIs) to help you evaluate your performance. For instance, a KPI you can set for your business could be that referral business should exceed 20% of your lead generation sources.
If you’re unsure how to put together your marketing plan, check out our article Real Estate Marketing Plan Template & Strategy Guide and download the free template to get started.
Postcard campaign example (Source: ProspectsPLUS! )
If direct mail is part of your promotion strategy, services like ProspectsPLUS! can help easily create and distribute mailers to a targeted area. It also has options for postcards , brochures, newsletters , flyers, and folders. You can also send mailers to prospective clients by geographic or demographic farm areas through its campaigns. Check out its templates and mailing options today.
Read how our experts feel about this real estate direct mail service in our ProspectsPLUS! review .
5. Create a Lead Generation & Nurturing Strategy
Having a successful lead generation strategy will help you maintain business growth. Lead generation can be performed organically and through paid advertisements to attract and convert prospective clients. In addition to generating leads, agents should have systems to manage, nurture, and re-engage with contacts to maximize opportunities.
Generating leads through a multipronged approach is the best way to maintain lead flow. Use organic strategies like hosting an open house, reaching out to your sphere of influence, and attending networking events. Employ paid generation strategies, such as purchasing leads from a lead generation company or setting up a website to funnel potential clients. Your marketing strategies will directly correlate with your lead generation strategies.
Every lead is an opportunity, even if they don’t immediately convert into a deal. Effectively nurturing leads can make sure no opportunity falls through the cracks. Agents can nurture leads by continuously engaging and developing relationships with prospective leads . It’s important to provide prospective clients with a constant flow of essential and relevant information, depending on where they are in the real estate buying or selling process.
Here are the top lead generation companies for real estate agents and brokers:
Engage more efficiently with buyer and seller leads using Market Leader’s new feature Network Boost. Network Boost has shown a 40% increase in agents successfully connecting with leads. Market Leader social media experts design highly targeted and optimized ads for your Instagram and Facebook. As visitors engage with your ads, they will be prompted to complete a form and funnel directly into your Market Leader client relationship manager (CRM). This will also trigger an automatic marketing campaign that nurtures your clients and lets you know they are ready to engage with you personally. Try Market Leader’s Network Boost today.
6. Calculate Your Income Goal
Your income goal is one of the most critical items to be included in your business plan. While this may be more difficult for new agents who are still learning the business, it’s still necessary to estimate the amount of money you will earn for the year. Work with an experienced agent or mentor to help you estimate your monetary goals. For professional agents, review your previous years to judge your income goals for the upcoming year.
To calculate your income goal and the amount of work you’ll need to complete to get to that goal, you’ll need to have some basic number estimates:
- Net income: The amount of money you will put in your pocket after commission splits with your real estate brokerage.
- Fee split with brokerage: This is the agreed-upon commission split you have with your brokerage for each completed transaction. For example, if you have a 70/30 split with your brokerage, you will collect 70% of the commission, and your brokerage will receive a 30% commission for each deal.
- Estimate of completed deals per year: You also want to estimate the number of deals you intend to complete yearly. Remember that some months will be busier than others, so make sure to account for holidays, weather, and your schedule.
Real Estate Yearly Goal Calculator
By figuring out these numbers, you can give yourself a realistic number for your income goal. Compute the gross income commission (GCI) or amount of money you must make before the commission splits and the average profit per deal and month you’ll need to reach your goal.
For a more detailed breakdown of your yearly goal, download and use our yearly goal calculator. Input your information into the highlighted yellow boxes, and the spreadsheet will automatically calculate the GCI, total deal count, and gross income you’ll have to earn each month to reach your goal. Adjust the average gross commission per deal and brokerage split as necessary.
FitSmallBusiness Year Goal Calculator
For additional information on real estate agent salaries, review our article Real Estate Agent Salary: How Much Do Real Estate Agents Make?
7. Set Times to Revisit Your Business Plan
Business plans are only effective if you use them. A business plan is a roadmap for your business, and you’ll need to revisit it often to ensure you’re staying on track. It should be a constant resource to guide you through meeting your goals and business objectives, but it’s not necessarily set in stone if you need to make any changes.
Agents should revisit their business plans monthly to measure progress and make any changes to stay the course. If you find that you’re missing the times set for your goals, then you should continue to revisit your business plan regularly. Changing the business plan itself should occur annually once you can have a complete picture of your yearly performance. Evaluating the business plan can help you discover new strategies and ensure you have the appropriate resources for the upcoming year.
Overall status of sales activities in the dashboard (Source: Pipedrive )
Sales software like Pipedrive can help you track your overall business performance when revisiting your business plan. It presents company sales data in easy-to-visualize dashboards that track your business performance and contains forecasting tools to project future revenue. It can maintain company and team goals with progress tracking to keep goals top of mind.
Read how our experts feel about this real estate customer relationship manager (CRM) system in our Pipedrive review .
Why Agents Need a Real Estate Business Plan
A real estate business plan keeps you up to date on market developments and one step ahead of your competitors. It also enables you to test lead-generating tactics and create new marketing campaigns while keeping track of results over time. A solid business plan for a real estate agent presents the following:
- Where you are at the moment
- Where you would like to be
- How you’re going to get there
- How to evaluate and measure your performance
- When and when to correct the course
Real Estate Business Plan Examples & Templates
Real estate agents and brokerages don’t have to build their business plans from scratch, as many resources provide different examples. Business plan templates can also have different objectives. Some are used to secure financing or help you focus on lead generation, while others are single-page plans meant to get you started.
Here are five real estate business plan examples you can use to create yours:
Lead Generation & Income Plan
Market Leader business plan example (Source: Market Leader )
This business plan is from Market Leader, a third-party lead generation platform. It specializes in lead generation, marketing, and converting leads into customers with an attractive IDX (Internet Data Exchange) website and robust automation tools. Agents can also participate in purchasing leads through their lead products to receive a guaranteed number of leads per month.
A Single-page Business Plan
Business plan for real estate (Source: PngFind )
Agents who are new to writing a business plan can start small. Business plans do not have to be multipage to be effective. This single-page business plan helps identify a single goal followed by three areas to focus on and five objectives for each focus area. As real estate agents begin to feel comfortable with goal setting and completion, they can continue to add to this single-page business plan with duplicate pages, identifying additional goals.
Business Plan for Real Estate Brokers
Real estate broker business plan (Source: AgentEDU )
This robust real estate broker business plan is designed to address organization and management goals. It contains pages identifying personnel information like title, job description, and salary. The business plan also encourages the broker to identify operational goals for future personnel changes. It’s best suited for a broker with a larger team to help drive operational change.
Business Plan With Detailed Financials
Example of real estate agent business plan template (Source: FinModelsLab )
This multipage business plan contains eye-catching graphics and detailed company financial information for real estate agents and brokers seeking funding from outside investors. One of the last sections of the business plan is a financial planning section geared toward showing how viable your business is through your provided income statements, cash flow, and balance sheet reports.
Real Estate Developers’ Business Plan
Realtor business plan template sample (Source: Upmetrics )
Upmetrics’ real estate business plan templates are easy to edit and share and contain professional cover pages to help agents convert their business ideas into actionable goals. The business plans from Upmetrics are geared toward agents looking to transition into real estate development. This plan includes vital sections important for a developer to analyze, such as building location, demand for housing, and pricing.
Real estate CRM (Source: Market Leader )
Market Leader’s business plan is centered around driving more business through lead generation. It helps agents understand their lead sources, average sales price, and how much commission was earned in a given year. It also allows agents to set income and transactional goals for the following year.
Visit Market Leader
Whether you are a new real estate agent or looking to grow your brokerage, writing a real estate business plan template will help you define the steps needed to build a successful business . It serves as a guided roadmap to help you achieve your business goals, identify areas of improvement, and provide guidance in all aspects of your business, from marketing, operations, and finance to your products and services. Business plans can help determine if your business is viable and worth the financial investment.
Frequently Asked Questions (FAQs)
What is a real estate business plan.
A real estate business plan is a document that presents an outline of your organizational goals. A business plan lays out future company goals and structured procedures to achieve them. Business plans commonly contain plans for one to five years at a time, though they can differ from investor to investor.
A real estate business plan will put you in a position to succeed while also assisting you in avoiding potential pitfalls. It serves as a guide to follow when things go as expected and when they diverge from the initial plan of action. Also, a real estate business plan will ensure that investors know the steps they need to take to succeed.
How do I jump-start my real estate business?
It is important to note that starting a real estate business is not a simple task. Before launching a firm in any field, entrepreneurs should spend numerous hours researching and developing a solid business plan. As you start your real estate business, use the following tips as guidance:
- Think about your professional goals
- Conduct extensive research
- Organize your finances
- Create a business plan
- Establish an LLC
- Make a marketing plan
- Create a website
- Start campaigns
- Keep track of leads
- Develop a network of connections
How can I grow my real estate business?
You can use multiple strategies and ways to grow your real estate business. They include:
- Assess your current situation
- Invest in your professional growth
- Establish strategic alliances
- Take advantage of omnichannel marketing
- Start blogging
- Create consistent social media profiles and campaigns
- Improve your website
- Consider working with a marketing company
- Optimize your signs and direct mail
About the Author
Find Jealie On LinkedIn
Jealie is a highly creative individual who loves reading. She has always seen writing as an opportunity to apply her knowledge and express her ideas. Over the years and through her internship at a real estate developer in the Philippines, Camella, she developed and discovered essential skills for producing high-quality online content.
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10 Things Your Real Estate Business Plan Needs (FREE Template)
A real estate agent business plan is essential for success in today’s competitive market. It helps you set clear goals, define your vision, and outline the steps to achieve short-term and long-term objectives. As a real estate professional, having a well-crafted business plan can be the difference between being a top producer and struggling to make ends meet.
In your business plan, you’ll want to start by creating a vision statement that outlines the purpose of your real estate business and reflects your values. Setting firm goals will help you stay accountable and focused, allowing you to adapt to market changes or growth and remember that your business plan should be fluid and up-to-date to stay aligned with your ultimate objectives.
Your real estate agent business plan should be thorough, covering various aspects such as market analysis, organization structure, and marketing strategies. By having a comprehensive plan, you’ll be better equipped to navigate the challenges and seize the opportunities that come your way, ensuring your real estate business flourishes.
Understanding Your Target Market
Identifying your ideal client.
Understanding your target market is crucial to establish a successful real estate business plan. Begin by identifying your ideal client. Consider factors that may define your target clients, such as age, income level, family status, and property preferences. Reflect on your strengths as an agent and which clients you connect best with. This will help you focus your marketing efforts and create tailored strategies for your target audience.
Market segmentation divides your target market into smaller, more specific groups based on shared characteristics. In real estate, you can segment your market into categories such as:
- First-time homebuyers
- Empty nesters
By segmenting your market, you can tailor your services and communication strategies according to the unique needs of each group. This will lead to more effective marketing efforts and a better understanding of your potential clientele.
Analyzing Local Market Trends and Opportunities
Gather data on your local real estate market to identify trends and opportunities for your business. Analyze factors like:
- Market growth
- Market saturation
- Local property values
- Employment rates
- Infrastructure development
- Population demographics
By analyzing local market trends, you can identify areas with potential growth or areas that are becoming overly saturated. Use this information to adapt your services and expertise to market conditions, helping you stand out among competitors and position yourself as an expert in your niche.
Remember, a comprehensive understanding of your target market is essential for shaping your real estate agent business plan. By identifying your ideal clients, segmenting the market, and analyzing local market trends and opportunities, you’ll be better equipped to create tailored marketing strategies and make informed business decisions. This will ultimately contribute to the success and growth of your real estate business.
Lead Generation Strategies
Building an online presence.
To create a robust lead generation plan, build a strong online presence. A real estate agent must have a well-designed and user-friendly website to capture leads. Keep these factors in mind:
- Make sure your website reflects your branding and expertise
- Optimize your site for search engines to enhance its visibility in search results
- Include clear calls-to-action (CTAs), so potential clients can easily contact you
- Utilize high-quality images and videos to showcase properties
- Share helpful and informative content through a blog or resources section
You can also leverage social media channels to expand your reach and showcase your expertise in the industry. Focus on the platforms most relevant to your target audience and share valuable content related to real estate, local events, or home improvement tips.
Networking and Referrals
Building a strong professional network is essential for generating quality leads. Here are some strategies to boost your referral pipeline:
- Attend networking events, conferences, or workshops in your area. Engage with professionals in real estate or related industries
- Establish relationships with local businesses and community organizations
- Hold open houses or host educational seminars to engage potential clients in person
- Develop relationships with past clients and ensure you stay top of mind so they recommend you to their connections
Additionally, create a referral program that rewards clients and other referrers for sharing your services with their network. This will incentivize them to talk about you and help expand your reach.
Traditional Marketing Methods
Despite the increasing importance of digital marketing, traditional methods still have their place in generating leads for real estate agents:
- Send direct mail campaigns, like newsletters or postcards, to targeted neighborhoods, highlighting your strengths and successes
- Advertise in local print media, such as newspapers or specialized real estate publications
- List your services and properties in industry-specific directories, both online and offline
- Design and distribute eye-catching flyers, brochures, and business cards
- Participate in community events or sponsor local charities to enhance your company’s reputation and visibility
Make sure to keep track of the effectiveness of each lead generation method and evaluate their strengths and weaknesses. This will help refine and improve your overall marketing strategy and ensure you invest resources into the most productive channels.
Lead Conversion Techniques
Building rapport and trust.
To build rapport and trust, focus on the following:
- Be genuine and authentic with your prospects, showcasing your expertise and knowledge.
- Listen actively, taking the time to understand their concerns and needs.
- Display empathy towards their situation, offering tailored solutions for their specific problems.
- Stay engaged through the entire process, from the first interaction to closing.
When it comes to qualifying leads:
- Ask open-ended questions to gauge their needs, timeline, and motivation for buying or selling
- Inquire about their financial situation and any potential barriers they may have
- Learn more about their preferred neighborhoods, housing type, and other preferences
- Prioritize leads based on their level of interest and readiness to move forward
Effective Communication and Follow-Up Strategies
For better communication and follow-up:
- Establish a consistent schedule for checking in on leads, such as every few days or weekly
- Personalize your communication, tailoring messages to each lead’s unique situation and preferences
- Practice active listening and respond thoughtfully to their questions or concerns
- Utilize several communication channels, including email, phone calls, text messages, and social media
Utilizing CRM Systems for Lead Management
Leveraging CRM systems can help you organize and optimize your lead management process:
- Track important lead information and interaction history in a centralized location
- Set reminders for follow-up tasks, appointments, or important milestones
- Analyze your leads’ behavior to understand their needs better and provide personalized service
- Create targeted marketing campaigns to engage your leads and nurture them toward conversion
By implementing these techniques and focusing on leads, marketing strategies, and communication, you’ll be well on your way to creating a thriving real estate agent business.
Closing Deals and Earning Commissions
When closing deals, it’s crucial to employ effective negotiation tactics to help both you and your client reach a favorable outcome. Some negotiation tactics include:
- Understanding the market: Know the local market trends and use this information when discussing price adjustments or concessions.
- Compromise: Find common ground and offer reasonable solutions to meet both parties’ needs.
- Leverage: Use your expertise in the real estate industry to highlight your client’s strengths and make convincing arguments.
Handling Objections and Overcoming Challenges
As a real estate agent, you’ll encounter objections and challenges in closing deals. To address them efficiently, consider the following points:
- Listen to the client’s concerns and empathize with their situation.
- Identify the objection: Determine the root cause of the objection and respond with a compelling solution.
- Maintain professionalism: Stay calm and composed, avoiding confrontational behavior.
Preparing and Presenting Offers
Presenting a well-prepared offer is vital to increasing the chances of closing a deal. Keep in mind:
- Research: Analyze comparable properties in the area to establish a competitive price for the offer.
- Documentation: Ensure that all necessary documents, such as pre-approval letters and proof of funds, are in order.
- Presentation: Employ clear and concise communication when presenting the offer, highlighting its benefits to the seller.
Managing the Transaction Process and Paperwork
Effectively managing the transaction process and paperwork helps keep the deal on track, which includes:
- Organization: Maintain an organized system for tracking important deadlines and required documents.
- Communication: Regularly update all parties involved in the transaction, ensuring they know the progress and address any concerns.
- Attention to detail: Ensure all forms, contracts, and other documents are accurate and complete.
By successfully closing deals, you’ll earn commissions based on your agreed split with your broker. For instance, if you close a deal worth $350,000 with a 6% commission rate, the gross commission income will be $21,000. If your commission split with your broker is 70/30, you’ll earn $14,700 while your broker receives $6,300. Utilizing the strategies discussed in this section will help you maximize your commission income and prove beneficial to your real estate business plan.
Client Retention and Building Repeat Business
Maintaining client relationships after closing.
Building lasting relationships with your clients is essential for repeat business and referrals. After closing a deal, continue to provide value by offering support with any post-closing issues, such as paperwork or maintenance concerns. Keep in touch with your clients and remember important milestones, such as anniversaries or birthdays. Show appreciation for their trust in you by sending thoughtful gifts or cards or simply checking in periodically.
Asking for Referrals and Testimonials
Word-of-mouth marketing is an incredibly powerful tool in the real estate industry. Encourage your satisfied clients to share their positive experiences with friends and family. To achieve this, be proactive in asking for testimonials and reviews, which you can later showcase on your website, social media, and other marketing materials. Here are some strategies to obtain them:
- Reach out via email or phone, and kindly request a testimonial or referral
- Provide a simple template to make it easy for clients to write a review
- Offer incentives, such as discounts on future services or gift cards, to show gratitude for their time and effort
Staying Top-of-Mind Through Regular Communication and Updates
Establish regular communication with your past clients to stay top-of-mind and generate repeat business. Keep them informed about the latest market trends, neighborhood developments, or listings that interest them. Here are some communication tactics you can employ:
- Send personalized monthly or quarterly e-newsletters
- Share relevant content, such as articles or videos, on your social media platforms
- Organize events, like client appreciation parties or educational seminars, to maintain connections and foster new ones
Maintaining client relationships, requesting referrals, and staying top-of-mind through regular updates will strengthen your real estate business with repeat clients and new prospects. Remember, satisfied customers are the key to long-term success in the real estate industry.
Measuring Success and Adjusting Your Strategies
Setting goals and key performance indicators (kpis).
To measure the success of your real estate agent business plan, start by setting SMART goals (Specific, Measurable, Achievable, Relevant, and Time-bound). These can serve as benchmarks for success and provide direction on areas to focus your efforts. Consider setting goals for various aspects of your business, such as sales volume, new client acquisition, and customer satisfaction.
In addition to your goals, establish key performance indicators (KPIs) to track your progress. KPIs are quantifiable metrics that help you evaluate the effectiveness of your strategies. Examples of KPIs for a real estate agent business plan include:
- Number of new leads generated per month
- The conversion rate of leads to clients
- Average days on market for properties
- Percentage of listings sold
Tracking and Analyzing Results
With your goals and KPIs established, continually collect and analyze data to track your progress. Regularly monitoring your results allows you to identify trends, spot potential problems, and evaluate the effectiveness of your marketing efforts. Some methods to track your data include:
- Using a CRM system to manage client relationships and interactions
- Employing analytics tools to evaluate the success of digital marketing campaigns
- Conducting a SWOT analysis (Strengths, Weaknesses, Opportunities, Threats) to identify areas where you excel or need improvement
Pay close attention to competitor performance and market trends to better understand how your strategies compare and identify any gaps you may need to address.
Adapting and Optimizing Your Strategies Based on Data
Once you’ve gathered and analyzed your data, use insights to adapt and optimize your strategies. Make data-driven decisions to improve your marketing efforts, streamline processes, and better allocate resources. Some steps you can take include:
- Adjusting your marketing budget and tactics based on your marketing ROI
- Revisiting your goals and KPIs to ensure they still align with your overall business objectives
- Fine-tuning your pricing strategies or the type of properties you focus on to meet market demand better
Maintaining a proactive approach to adjusting your strategies will keep your business plan agile and responsive to the changing real estate market. This will go a long way in helping you achieve the success you envision for your real estate agent business.
Time Management and Organization
Prioritizing tasks and setting a daily schedule.
In your real estate agent business plan, it’s crucial to have a time management and organization strategy. Start by prioritizing tasks that align with your [business goals]. Break down tasks into daily, weekly, and monthly goals. Then, create a daily schedule following the block scheduling method:
- List your key tasks for the day.
- Assign specific time blocks for each task.
- Stick to the schedule and avoid multitasking.
You’ll notice increased productivity and improved time management with this approach.
Using Productivity Tools and Apps
Take advantage of productivity tools and apps to help you stay organized and manage your time efficiently. Some popular tools for real estate agents include:
- Calendars: Apps like Google Calendar or Outlook can help schedule appointments and manage deadlines.
- Task Managers: Utilize tools like Trello, Asana, or Todoist to manage your projects and collaborate with your team.
- Time Tracking: Apps such as Toggl or Harvest provide insights into your work habits, helping you identify areas for improvement.
Remember to limit the number of tools you use to avoid digital clutter and duplicate information.
Delegating and Outsourcing Tasks When Necessary
As a real estate agent, delegating and outsourcing non-core tasks is essential to focus on your primary responsibilities. Here are some tasks you can consider delegating:
Identify areas where your expertise may not be as strong or where your time can be better spent, and consider outsourcing those tasks to professionals. This approach will help you manage your workload and improve the quality of your services.
Ongoing Education and Professional Development
Staying up-to-date with industry trends and changes.
To stay competitive in the real estate market, you must keep up with industry trends and changes. By monitoring resources like the National Association of Realtors (NAR), California Association of Realtors (CAR), and multiple listing services (MLS), you can stay informed about the latest developments in your field. Set aside time to read industry publications, attend webinars, listen to podcasts, and follow industry-leading professionals on social media.
Pursuing Relevant Certifications and Designations
Continuing education is crucial for staying current in the fast-paced real estate industry. Pursue relevant certifications and designations to add credibility and value to your practice. Organizations like NAR and CAR offer various designations demonstrating your expertise and commitment to professionalism to clients and colleagues.
Examples of real estate certifications and designations include:
- Accredited Buyer’s Representative (ABR)
- Certified Residential Specialist (CRS)
- Green Designation (Green)
- Seniors Real Estate Specialist (SRES)
To obtain these certifications, you must complete specific coursework, pass exams, and maintain membership in the relevant organizations.
Participating in Networking and Learning Events
Engaging in networking and learning events within the real estate community can help you build relationships, share ideas, and learn from the experiences of others. Attend conferences, workshops, and local meetups relevant to your niche, region, or areas of interest. Not only will this enhance your industry knowledge and skills, but it can also be an opportunity to form valuable connections that will benefit your business growth.
In summary, staying up-to-date with industry trends, pursuing certifications and designations, and participating in networking events can help you maintain and develop your skills as a real estate professional. Committing to continuous learning and professional development is essential to ensure your long-term success in the real estate business.
A well-structured business plan is essential for success as a new real estate agent. With a solid plan, you can set your goals, identify your target market, and analyze your competition. A comprehensive business plan lets you plan your marketing strategies, map your operating expenses, and create revenue projections.
To get started, consider using a business plan template tailored to real estate agents’ needs. This will give you a framework to follow as you develop your plan.
Developing a business plan is just the first step in the process. You need to take action and implement your strategies to realize your goals and achieve success. Revise your plan regularly, adapting and updating it as needed. This will ensure you stay on track with your goals and remain competitive in the ever-changing real estate market.
As a new real estate agent, taking bold steps toward your objectives may feel intimidating. However, trust your plan, apply your outlined strategies, and stay persistent. Your dedication will pay off in the long run.
Starting a career in real estate can be challenging, but you don’t have to face the journey alone. There are numerous resources and support networks available to help new real estate agents excel:
- Professional networks : Join local real estate associations and online forums to connect with experienced agents, ask questions, and expand your knowledge.
- Mentors : Seek accomplished real estate agents who can offer guidance, share valuable experiences, and provide personalized advice.
- Training and education : Keep your skills fresh by attending workshops, participating in webinars, and pursuing continuing education courses relevant to your field.
By leveraging these resources and committing to your business plan, you are setting yourself up for a successful career in real estate. Don’t forget to celebrate your achievements along the way and take pride in your progress. Now is the time to take action; you will surely achieve your goals with determination and hard work.
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How to Write a Solid Real Estate Business Plan in 2023
May 17, 2023
If you hope to grow your real estate business , it helps to know where you want to go.
According to research from the Harvard Business Review, “ it pays to plan. ” Based on their reporting, entrepreneurs who develop formal business plans were 16% more likely to achieve viability versus those who didn’t. Another study suggests business planning helps a firm grow 30% faster.
Additional data even suggests that how much time you commit to writing your business plan and when you write it can increase the likelihood of your business’ success.
Those reports—and many more like them—emphasize that writing a business plan is worthwhile. It can guide you and your team toward (and beyond) your real estate goals.
Let’s take a look at what a business plan is, why you need one, and the necessary elements to lay the foundation of your real estate business for the next 10 years.
What is a real estate business plan?
A business plan is a strategy outlining the major points of a business and how that business will grow and succeed in the marketplace—in our case, residential real estate.
The most common analogy is that of a map. A business plan lays out your road to success, including critical waypoints or milestones along the way and how you intend to accomplish them.
Why do you need a business plan?
In terms of real estate, business plans provide a clear outline of who you are and what you bring to the table, the foundation for your business, and how you plan to build upon that foundation.
Business plans can serve any number of purposes. They’re often used to secure capital or sources of financing, compel potential investors or partners to join or invest or help solidify joint ventures or partnerships. A great business plan can even attract skilled employees and top-level talent.
Understand the real estate professional you want to be
As a real estate professional, the services you provide might be fairly obvious. Whether you’re an individual agent, broker, or part of a larger team, identifying strengths, weaknesses, and the intangibles that set you apart directs your planning. Taking stock of who you are now and what you hope to achieve will allow you to better dissect and outline your future career.
Business plan timeframe
It’s worth noting that most business plans adhere to a timeframe of three to five years. Some are as short as one year, others as long as seven. Although everything in this article provides recommendations for a three to five-year plan, it’s worth looking beyond your short- to midterm goals.
As an agent, for a 10-year plan, consider such growth initiatives as joining a brokerage, partnering with other agents, or earning your broker’s license. If you’re already at the broker level, you might be ready to start your own brokerage or expand a small operation.
Regardless of your starting point and how big your ambitions are, ensure your business plan is objective and honest and includes reasonable and attainable goals.
Elements of a real estate business plan
A business plan can be narrow or broad, succinct or highly detailed. When constructing your business plan through the lens of real estate, particularly as an individual agent, it’s best to keep things simple, manageable, and achievable. Focus on where you are now, where you want to go, and how to get there.
Let’s review the individual elements of a simple business plan and what each section should include.
The executive summary serves as a brief overview of who you are, your purpose, and your goals. A good summary is typically one to two pages (although one is optimal) and should include the following:
- Description of services
- Summary of objectives
- Brief market snapshot
- Overview of market opportunities and competition
- Capital or partnership requirements, if applicable
Your executive summary is the one part of your business plan you can recite from memory. There’s no fluff. This is your elevator pitch to sell your vision and convince others to join you on your mission.
Overview and objectives
The overview and objectives section can vary somewhat based on your individual needs, but they should include three critical elements:
- Your mission statement
- Your history
- Your objectives
Your mission statement is why you do what you do, the guiding principle, or principles for your business. If you’re looking for inspiration, two excellent examples from the world of real estate include:
- Compass: Our mission is to help everyone find their place in the world. Compass is building the first modern real estate platform, pairing the industry’s top talent with technology to make the search and sell experience intelligent and seamless.
- Sotheby’s Realty: Built on centuries of tradition and dedicated to innovation, the Sotheby’s International Realty brand artfully unites connoisseurs of life with their aspirations through a deeply connected global network of exceptional people.
Your history is just that—when you started, location, leadership, milestones, and any notable services or specializations.
Objectives are your primary-stated goals. A common technique for establishing your goals is through the “SMART” method, ensuring your goals are Specific, Measurable, Achievable, Relevant, and Time-bound.
Objectives that might cover the course of a 10-year plan include:
- Rebrand the company website in 30 days.
- Establish social media presence in 90 days.
- Close five transactions per month in year one, and double transaction volume by year three.
- Double the size of the firm by year five.
- Expand operations to include two additional offices by year seven.
- Attain broker license and open independent brokerage within a decade
Again, these are just examples. Make sure your goals are targeted and realistic to achieve within your set time frame.
Pro tip: if you’re on a team, designate key decision-makers
Often, your business will need to make progress on multiple objectives at the same time. These can include finding new leads, staying connected to old clients, and continuing to grow into new markets. To ensure all your team objectives remain active, group them based on category and designate a member of the team who will be responsible for managing achievements, setting milestones, and assessing progress.
For example, you may have a team member who manages marketing objectives. Another will manage networking and community outreach goals, while someone else presides over revenue goals and forecasting. While these team members are not solely responsible for achieving the objectives, they can take responsibility for pursuing progress and ensuring that everything aligns.
The goal of designating key decision-makers is to ensure that someone takes ownership over each critical pursuit of your team. If you have a lot of objectives but not enough decision-makers to manage the load, prioritize the most business-critical objectives by considering short-term vs. long-term needs.
You should also determine who has the final say. One of your team members may be the final decision-maker on publications: they review, approve, and assign for publishing all of your team’s articles and periodical material. Another team member may be the key decision-maker on approvals for expenses, while another may be the go-to expert for real estate negotiations that fall outside of normal operating procedures.
This step removes potential bottlenecks caused by indecision or lack of ownership. When there’s not a clear decision-maker, things can stagnate.
Market opportunities and competitive analysis
The best business plans outline where market conditions are ideal for the rapid growth of a business. This involves taking stock of the market’s demographics and existing opportunities, both current and future. Points to consider:
- Size and stability of the market. Is it on an upward trajectory? Downward spiral?
- What segment of the market will I target? What demographics make up the market?
- Is there a demand for a particular type of housing? Is there a type of homebuyer (first-time, luxury, young professional with children) that’s more prevalent than others?
- Are there more sellers than buyers? Is the opposite true?
- What do I offer clients that the competition does not? Can I stand out in this market and generate revenue?
Also, pinpoint specific market changes or circumstances that could significantly impact your business and others in your segment. Make sure you document them.
In many business plans, competitive analysis is worthy of its own standalone section. Regardless of how you present it, devote some space to your competition.
Include both immediate and secondary competitors, and note if the market is primed for new competitors in the future. Also, identify the risks and opportunities present when comparing your service and niche market versus others vying for the same or similar business.
Pro tip: focus on client needs first and your abilities second
Service-oriented real estate teams don’t focus on securing sales or conversions first. Instead, they freely extend value that authentically addresses the pain points of their clients and community. To start, consider some common sources of frustration, anxiety, and uncertainty among your clients. These might be:
- Uncertainty about market shifts
- Lack of connection to the community, especially if they’re new in town
- Confusion about property taxes
- Distrust toward real estate agents
- Unique weather and climate patterns in their area
Although these pain points are not directly solved by real estate services, trying to sell a property or promote yourself as an option for selling their current property does not align with what they need. Instead, the key is to act as an advisor and become a trusted resource in real estate-related concerns:
- Uncertainty about market shifts: Email prospects regularly about changes in mortgage rates, real estate inventory trends, and house-buying/selling trends in their neighborhood or a neighborhood they’re interested in.
- Lack of connection to the community, especially if they’re new in town: Provide resources about local sites, community events, and popular attractions based on their interests.
- Confusion about property taxes: Send reminders about property tax protest deadlines and homestead exemption filing deadlines. Offer to meet and discuss “comps” in their neighborhood, so they can protest their property taxes effectively.
- Distrust toward real estate agents: Provide helpful advice and referrals to other professionals in your network (i.e., plumbers, electricians, etc.) with no mention of real estate.
- Unique weather and climate patterns in their area: Send content about timely home maintenance and protection reminders before hurricane season, the first snowfall, or other relevant weather events in your area.
These actions address your clients’ needs, not yours. In doing so, you maintain open channels of communication and strengthen your brand identity.
A SWOT analysis is a useful tool for framing different attributes within your real estate team and determining your strategic position. Through its matrix-like formatting, you can identify your team’s strengths, weaknesses, opportunities, and threats. Use data-backed facts to fill out this analysis. Consider:
- Strengths: Is your team brand recognizable? Do you have an in-house expert for each specialization within residential or commercial real estate (or both)? Do you have an active pipeline of new leads ? What is your unique selling proposition (USP)?
- Weaknesses: Do you lack social media or online content? Is your team brand relatively new or unrecognizable ?
- Opportunities: Has your team just branched out to a new area of real estate? Is market demand growing in your area? Have you uncovered a new source of referrals ?
- Threats: Is there a new team that covers the same niche and offers the same USP as your team? Are mortgage rates rising enough to slow down demand?
By uncovering and specifying factors in each grid of the SWOT analysis matrix, you can identify areas that need immediate attention or business factors that can be capitalized on. For a more strategic use of SWOT analyses, use these best practices:
- Revise your SWOT analysis every month or quarter to address changes.
- Create competitive SWOT analyses of key competitors within your niche. This strategic work allows you to discover your competitive advantage over other businesses in more detail. You can also determine factors in which your competitors have an advantage and move to counter them.
- Digitize your SWOT analysis. This ensures every member of the team can readily access it and make suggestions.
Pro tip: differentiate yourself
Once you’ve completed your SWOT analysis, focus on the strengths section first and hone in on your unique selling proposition .
- Do you offer more personalized attention than other teams?
- Do you have an expert real estate agent for first-time homebuyers?
- Or do you have a well-earned reputation for always preparing the right pricing strategy for clients who want to sell their homes?
No matter what your USP is, be sure to showcase it in all of your marketing materials, pitches, and communications.
If you don’t have a single USP, review both your mission statement and your SWOT analysis. These two documents can help you identify the factors that differentiate your real estate team from others.
The marketing plan identifies and details how you will reach and attract your target market. Effectively, it’s an exercise in the type of real estate client your services will appeal to most and having a plan that ensures they take notice. Key points to outline:
- Demographics of your ideal client, including age, location, income, and profession.
- What attracts this client? Turns them off?
- What type of neighborhoods, amenities, or lifestyle are they seeking?
- Which marketing and advertising channels are they most receptive to? Which ones do your competitors frequent?
- Are you positioned better than your competitors to attract this client?
- What are the benefits your real services offer to attract your ideal client?
From there, you can build a reasonably detailed profile of your ideal client—buyers and sellers drawn to your real estate services. After that, your advertising and outreach efforts will take shape and should feature:
- Marketing and advertising budget
- Planned marketing channels
- Digital footprint, including website, social media, or digital outreach marketing (such as email)
- Plans to nurture non-specific outreach efforts such as referrals, SEO , open houses, etc.
- How will you measure your marketing success? How will you address changes to your strategy if necessary?
- In addition to attracting clients, how will you market your business as a whole?
It doesn’t hurt to include marketing materials in your plan if you already have them. Items like brochures, print ads, website descriptions or screenshots, or advertising contracts are worthy of inclusion.
Pro tip: consider investing in a client relationship management (CRM) tool
Instead of keeping paper notes or an old-fashioned Rolodex, organize all of your client information in a Client Relationship Management (CRM) system . This type of platform allows you to create and maintain a detailed profile of your prospects and clients. You can include data such as:
- Personal details
- Real estate preferences
- Budget considerations
- Important dates
- In-progress and past transactions
Not only can you use this information to stay on top of your client network, but you can also use it to create personalized emails and automated communications .
If you use a real estate email marketing tool, for example, you can send certain segments of your network emails based on specifics in their profile. It’s a lot easier than manual communication and ensures no one falls off your team’s radar.
A financial plan is a fairly straightforward snapshot of the economic health of your business. It should feature basic elements such as:
- Profit and loss statement: also called income statement or pro forma, this shows a company’s profitability (or loss) over a certain length of time
- Cash flow statement: an overview of your actual cash position
- Balance sheet: where you stand regarding assets, liabilities, and equity at a specific point in time
- Operating budget: detail of your income and expenses, usually over 12 months
- Break-even analysis: outlines the revenues necessary to cover all costs and your business’s potential to be profitable
Depending on your real estate business position or if you’re an individual broker or agent, you can simplify this area with just an operating budget and break-even analysis.
Finally, it’s critical to understand that your real estate business plan is not a one-and-done proposition or something to be written, tossed in a drawer, and forgotten. Make time to periodically reevaluate your progress and see where you stand in reaching your goals. Once every 90 days is a good rule of thumb, but feel free to be more or less frequent as necessary.
If you find yourself behind schedule, don’t be afraid to make strategic decisions to correct course and get you and your real estate career goals back on track. And if you start hitting those goals early, it might be time to make some new ones.
Revamping your real estate business plan?
From beautifully crafted websites and property pages to stunning photography and virtual tours, our platform provides a suite of digital tools to help you stand out from the competition. Contact our team of experts today to begin refining your online presence.
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- Writing a Business Plan
Writing a business plan may seem a daunting task as there are so many moving parts and concepts to address. Take it one step at a time and be sure to schedule regular review (quarterly, semi-annually, or annually) of your plan to be sure you on are track to meet your goals.
Why Write a Business Plan?
Making a business plan creates the foundation for your business. It provides an easy-to-understand framework and allows you to navigate the unexpected.
- A good business plan not only creates a road map for your business, but helps you work through your goals and get them on paper
- Business plans come in many formats and contain many sections, but even the most basic should include a mission and vision statement, marketing plans, and a proposed management structure
- Business plans can help you get investors and new business partners
Source: Write Your Business Plan: United States Small Business Association
Writing a business plan is imperative to getting your business of the ground. While every plan is different – and most likely depends on the type and size of your business – there are some basic elements you don’t want to ignore.
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NAR Library & Archives has already done the research for you. References (formerly Field Guides) offer links to articles, eBooks, websites, statistics, and more to provide a comprehensive overview of perspectives. EBSCO articles ( E ) are available only to NAR members and require the member's nar.realtor login.
Defining Your Mission & Vision
Writing a business plan begins by defining your business’s mission and vision statement. Though creating such a statement may seem like fluff, it is an important exercise. The mission and vision statement sets the foundation upon which to launch your business. It is difficult to move forward successfully without first defining your business and the ideals under which your business operates. A company description should be included as a part of the mission and vision statement. Some questions you should ask yourself include:
- What type of real estate do you sell?
- Where is your business located?
- Who founded your business?
- What sets your business apart from your competitors?
What is a Vision Statement ( Business News Daily , Feb. 21, 2023)
How to Write a Mission Statement ( The Balance , Jan. 2, 2020)
How to Write a Mission Statement ( Janel M. Radtke , 1998)
Using a SWOT Analysis to Structure Your Business Plan
Once you’ve created a mission and vision statement, the next step is to develop a SWOT analysis. SWOT stands for “Strengths, Weaknesses, Opportunities, and Threats.” It is difficult to set goals for your business without first enumerating your business’s strengths and weaknesses, and the strengths and weaknesses of your competitors. Evaluate by using the following questions:
- Do you offer superior customer service as compared with your competitors?
- Do you specialize in a niche market? What experiences do you have that set you apart from your competitors?
- What are your competitors’ strengths?
- Where do you see the market already saturated, and where are there opportunities for expansion and growth?
Strength, Weakness, Opportunity, and Threat (SWOT) ( Investopedia , Apr. 21, 2023)
How to Conduct a SWOT Analysis for Your Small Business ( SCORE , Apr. 28, 2022)
SWOT Analysis Toolbox ( University of Washington )
Setting Business Goals
Next, translate your mission and vision into tangible goals. For instance, if your mission statement is to make every client feel like your most important client, think about the following:
- How specifically will you implement this?
- Do you want to grow your business?
- Is this growth measured by gross revenue, profit, personnel, or physical office space?
- How much growth do you aim for annually?
- What specific targets will you strive to hit annually in the next few years?
What are Business Goals? Definition, How To Set Business Goals and Examples ( Indeed , Mar. 10, 2023)
Planning and Goal Setting for Small Business ( U.S. Small Business Administration )
- Regular work goals.
- Problem-solving goals.
- Innovative goals.
- Development goals
Establishing a Format
Most businesses either follow a traditional business plan format or a lean startup plan.
Traditional Business Plan
A traditional business plan is detailed and comprehensive. Writing this business plan takes more time. A traditional business plan typically contains the following elements:
- Executive Summary
- Company description
- Market analysis
- Organization and management
- Service or product line
- Marketing and sales
- Funding request
- Financial projections
Lean Startup Plan
A lean startup plan requires high-level focus but is easier to write, with an emphasis on key elements. A lean startup plan typically contains the following elements:
- Key partnerships
- Key activities
- Key resources
- Value proposition
- Customer relationships
- Customer segments
- Cost structure
- Revenue stream
Creating a Marketing Plan
You may wish to create a marketing plan as either a section of your business plan or as an addendum. The Marketing Mix concerns product , price , place and promotion .
- What is your product?
- How does your price distinguish you from your competitors—is it industry average, upper quartile, or lower quartile?
- How does your pricing strategy benefit your clients?
- How and where will you promote your services?
- What types of promotions will you advertise?
- Will you ask clients for referrals or use coupons?
- Which channels will you use to place your marketing message?
Your Guide to Creating a Small Business Marketing Plan ( Business.com , Mar. 22, 2023)
10 Questions You Need to Answer to Create a Powerful Marketing Plan ( The Balance , Jan. 16, 2020)
Developing a Marketing Plan ( Federal Deposit Insurance Corporation )
Forming a Team
Ensuring the cooperation of all colleagues, supervisors, and supervisees involved in your plan is another important element to consider. Some questions to consider are:
- Is your business plan’s success contingent upon the cooperation of your colleagues?
- If so, what specifically do you need them to do?
- How will you evaluate their participation?
- Are they on-board with the role you have assigned them?
- How will you get “buy in” from these individuals?
How to Start a Rock-Solid Real Estate Team ( The Close , May 26, 2020)
Don’t Start a Real Estate Team Without Asking Yourself These 8 Questions ( Homelight , Jan. 21, 2020)
Implementing a Business Plan and Reviewing Regularly
Implementation and follow-up are frequently overlooked aspects to the business plan, yet vital to the success of the plan. Set dates (annually, semi-annually, quarterly, or monthly) to review your business plans goals. Consider the following while reviewing:
- Are you on track?
- Are the goals reasonable to achieve, impossible, or too easy?
- How do you measure success—is it by revenue, profit, or number of transactions?
And lastly, think about overall goals.
- How do you plan to implement your business plan’s goals?
- When will you review and refine your business plan goals?
- What process will you use to review your goals?
- What types of quantitative and qualitative data will you collect and use to measure your success?
These items are only a few sections of a business plan. Depending on your business, you may want to include additional sections in your plan such as a:
- Cover letter stating the reasoning behind developing a business plan
- Non-disclosure statement
- Table of contents
How To Write a Business Proposal Letter (With Examples) ( Indeed , Mar. 10, 2023)
How To Implement Your Business Plan Objectives ( The Balance , Aug. 19, 2022)
The Bottom Line
Creating a business plan may seem daunting, but by understanding your business and market fully, you can create a plan that generates success (however you choose to define it).
Real Estate Business Plans – Samples, Instructional Guides, and Templates
9 Steps to Writing a Real Estate Business Plan + Templates ( The Close , Apr. 17, 2023)
How to Write a Real Estate Business Plan (+Free Template) ( Fit Small Business , Jun. 21, 2022)
The Ultimate Guide to Creating a Real Estate Business Plan + Free Template ( Placester )
Write Your Business Plan ( U.S. Small Business Administration )
General Business Plans – Samples, Instructional Guides, and Templates
Business Plan Template for a Startup Business ( SCORE , May 12, 2023)
Guide to Creating a Business Plan with Template (Business News Daily, Feb. 21, 2023)
Nine Lessons These Entrepreneurs Wish They Knew Before Writing Their First Business Plans ( Forbes , Jul. 25, 2021)
How to Write a Business Plan 101 ( Entrepreneur , Feb. 22, 2021)
Books, eBooks & Other Resources
Ebooks & other resources.
The following eBooks and digital audiobooks are available to NAR members:
20 Minute Manager: Creating Business Plans Gather Your Resources, Describe the Opportunity, Get Buy-in (eBook) E
The Straightforward Business Plan (eBook)
Business Plan Checklist (eBook)
The SWOT Analysis (eBook)
The Business Plan Workbook (eBook)
Start-Up! A Beginner's Guide to Planning a 21st Century Business (eBook)
Complete Book of Business Plans (eBook)
How to Write a Business Plan (eBook)
The Easy Step by Step Guide to Writing a Business Plan and Making it Work (eBook)
Business Planning: 25 Keys to a Sound Business Plan (Audiobook)
Your First Business Plan, 5 th Edition (eBook)
Anatomy of a Business Plan (eBook)
Writing a Business Plan and Making it Work (Audiobook)
The Social Network Business Plan (eBook)
Books, Videos, Research Reports & More
As a member benefit, the following resources and more are available for loan through the NAR Library. Items will be mailed directly to you or made available for pickup at the REALTOR® Building in Chicago.
Writing an Effective Business Plan (Deloitte and Touche, 1999) HD 1375 D37w
Have an idea for a real estate topic? Send us your suggestions .
The inclusion of links on this page does not imply endorsement by the National Association of REALTORS®. NAR makes no representations about whether the content of any external sites which may be linked in this page complies with state or federal laws or regulations or with applicable NAR policies. These links are provided for your convenience only and you rely on them at your own risk.
How to create a real estate business plan
- Nirit Braun
A real estate business plan is a strategic document that outlines the objectives, strategies and tactics a person or a team will employ when starting a business in the real estate industry. This comprehensive and clear plan not only defines the business' mission, vision and goals but also delineates the steps necessary to achieve them.
When starting a business, especially in a dynamic and competitive sector like real estate, a well-crafted business plan becomes an indispensable tool for success. It provides a structured framework that helps entrepreneurs make informed decisions, allocate resources effectively and stay focused on their objectives. By articulating the business' value proposition, target market, competitive landscape and revenue streams, the plan offers a holistic understanding of the venture's potential and challenges.
Looking to kick off your real estate business? Create a business website today with Wix. These real estate agent websites can help you get started.
In this section, we'll break down the key components involved in crafting a successful real estate business plan in six steps.
Company and domain name
Market analysis and research
Marketing and advertising plan
01. Executive summary
An executive summary is a concise overview of your entire real estate business plan. It serves as a snapshot that captures the essence of your venture, highlighting its key components and objectives. A well-crafted executive summary should provide a clear understanding of your real estate business' purpose, market opportunity, strategies and potential for success. It's typically the first section of the business plan and should be written after the rest of the plan has been completed.
To write a clear executive summary for a real estate business, follow these steps:
Start with a brief introduction: Describe your business’ mission, vision and the services you intend to offer. Highlight what sets your business apart in the competitive real estate landscape.
Summarize the market demand: Explain what kind of opportunity you aim to address with this type of business . Mention key trends in the real estate industry that support the viability of your venture.
Identify your target audience: Whether it's first-time homebuyers, property investors or commercial clients, briefly describe their demographics and needs.
State the unique value you offer to clients: This could be exceptional customer service, a specialized focus or innovative technology solutions.
Outline your key marketing strategies: Highlight how you plan to reach and engage your target market.
Provide a high-level overview of your projected financials: Include revenue projections, startup costs and funding requirements.
Introduce the key members of your team: Highlight how their skills contribute to the success of the real estate business.
Example of an executive summary for a real estate business: “ABC Realty is a dynamic real estate agency that specializes in helping first-time homebuyers navigate the complex property market. With a strong commitment to providing personalized guidance and support, we aim to simplify the buying process and empower our clients to make informed decisions. Our target market consists of young professionals and families looking for their dream homes in urban areas. Leveraging the latest technology and data analytics, we offer a seamless search experience that matches buyers with their ideal properties. Our marketing strategy involves a mix of social media engagement, local partnerships and educational workshops to establish our brand as a trusted resource in the real estate industry. Backed by a team of experienced agents and industry professionals, we are well-positioned to make homeownership dreams a reality while achieving sustainable growth and profitability. Our projected financials indicate a steady upward trajectory, with a goal of reaching profitability within the first two years.”
02. Company and domain name
Knowing how to name a business is crucial for a real estate venture and a key step before you register your business . It shapes your brand identity, influences client perceptions and establishes trust.
Additionally, selecting a suitable domain name for your business website is crucial for online visibility and accessibility. Your online presence should be in top form taking into account that 97% of homebuyers search for their homes online. Here's how to approach these decisions:
Should reflect your business' values and services
Keep it concise, memorable and easy to spell
Check for trademark conflicts to avoid legal issues
Consider using the free business name generator from Wix for inspiration
Be inspired by these real estate business name lists.
Align it closely with your company name if possible
Choose a domain extension (.com, .net, .org) that's commonly recognized
Keep it short and free of complex words or hyphens
Ensure it's easy to pronounce and type
Learn more: How to make a website
03. Market analysis and research
Incorporating comprehensive market analysis and research into your business plan is essential for understanding the competitive landscape and formulating an effective business strategy. Conduct market research to identify trends, competitors and potential gaps in the market. Analyze your target audience's preferences, behaviors and pain points to tailor your services and marketing efforts accordingly.
Understanding the market dynamics allows you to position your real estate business strategically and offer unique value propositions that resonate with clients.
04. Operations plan
An operations plan outlines the logistical aspects of your real estate business, ensuring its smooth day-to-day functioning. This section should cover:
The physical location of your business office or headquarters
The size and layout of your office space
The equipment and technology required to run your real estate business
The roles, responsibilities and qualifications of your team members
05. Marketing and advertising plan
In the competitive real estate industry, a robust marketing and advertising plan is vital for attracting clients and establishing your brand presence. Your plan should encompass various strategies, including:
Social media marketing, search engine optimization (SEO) and online advertising
Creating valuable content like blog posts, videos and guides
Establishing partnerships with local businesses and industry associations
Hosting events and workshops that educate clients about real estate trends
You’ll also need to develop a suite of brand assets to use in your marketing efforts, starting with a company logo. You can use a free logo maker or real estate logo maker to get a professional design in minutes.
06. Financial plan
The average cost to start a real estate brokerage can range from $10,000 to $200,000 , so odds are you will need to secure financing. The financial plan outlines your real estate business' financial projections, funding requirements and path to profitability. It should include all your startup costs including licensing, office setup, marketing materials and technology.
Next, estimate income based on property sales, commissions and other revenue sources. Alongside this outline ongoing operational costs, such as rent, salaries, marketing and utilities. Then take the time to specify how your business will be funded initially, whether through personal savings, loans or investor contributions. Finally, predict when your real estate business is expected to reach profitability based on your revenue and expense projections.
Real estate business plan examples
Here are two templates for hypothetical real estate businesses, each including the main parts discussed in our how-to steps.
Real estate business plan template #1: ABC Realty
ABC Realty is a forward-thinking real estate brokerage focused on serving residential clients in urban areas. With a mission to simplify the home buying process for first-time buyers, we aim to provide personalized guidance and a seamless search experience. Our market research indicates a rising demand for affordable housing solutions and our team's expertise positions us well to address this need. Leveraging digital platforms and local partnerships, we're dedicated to establishing a brand known for trust, transparency and professionalism. Our financial projections show steady growth, with profitability projected within 18 months.
Company name: UrbanNest Realty
Domain name: www.urbannestrealty.com
Market analysis: Our research reveals a growing trend of Millennials seeking starter homes in urban areas.
Competitive landscape: Competitor analysis highlights the need for tailored customer service and simplified processes. We will tap into this by offering comprehensive support and leveraging technology to streamline transactions.
Location: A prime urban location with easy accessibility.
Premises: A modern office space designed for client consultations and agent collaboration.
Equipment: State-of-the-art computers, customer relationship management (CRM) software and virtual tour technology.
Staffing: Agents, property management experts and administrative staff.
Digital marketing: Social media campaigns, targeted online ads and search engine optimization.
Content marketing: Regular blog posts on home-buying tips, neighborhood insights and market trends.
Networking: Partnerships with local lenders, moving companies and interior designers to provide added value.
Events and workshops: Monthly homebuyer seminars and virtual property tours.
Startup costs: $60,000 (licenses, office setup, marketing materials)
Revenue projections (first year): $300,000
Revenue projections (section year): $500,000
Expenses: Monthly rent, salaries, marketing expenses and administrative costs
Funding: Personal savings and a small business loan
Profitability timeline: Projected within 18 months
Real estate business plan template #2: Empire Investments
Empire Investments is a dynamic real estate investment firm specializing in commercial properties. With an aim to provide high-value investment opportunities, we focus on acquiring and enhancing properties with substantial growth potential. Our strategy involves leveraging market trends, identifying undervalued assets and optimizing their value through strategic renovations and management. Our team of seasoned professionals ensures a comprehensive approach to portfolio management, driving investor returns. Our financial outlook is promising, with steady revenue growth projected over the next five years.
Company name: Empire Investments
Domain name: www.empireinvestmentsre.com
Market analysis: Our research highlights an increasing demand for mixed-use properties in urban areas.
Competitive landscape: Competitor analysis reveals a gap in the market for value-add properties. We'll focus on acquiring underperforming assets with the potential for repositioning and strong cash flow.
Location: Central business district for easy access to commercial properties.
Premises: A professional office space for meetings and deal analysis.
Equipment: Advanced financial analysis tools and property management software.
Staffing: Investment analysts, property managers, legal experts and administrative support.
Networking: Building relationships with commercial brokers, property managers and industry experts.
Content marketing: Thought leadership articles, market reports and investment guides.
Webinars and seminars: Monthly webinars on commercial real estate investment strategies.
Direct marketing: Targeted outreach to potential investors based on investment preferences.
Startup costs: $150,000 (licenses, office setup, due diligence expenses)
Revenue projections (first year): $1,000,000
Revenue projections (second year): $2,000,000
Expenses: Office overhead, salaries, marketing campaigns and property management costs
Funding: Combination of private equity, investor capital and personal investments
Profitability timeline: Positive cash flow projected within the first year, substantial returns expected over five years
Top benefits of writing a real estate business plan
Starting a business in real estate requires careful planning and a well-structured business plan offers a multitude of benefits that contribute to the venture's success. A business plan helps you in the following ways:
Attracting investors and funding: A well-developed business plan serves as a persuasive tool to attract potential investors and secure funding. It outlines the business's unique value proposition, market opportunities and growth strategies. By clearly articulating the revenue model and projected financials, entrepreneurs demonstrate their preparedness and potential returns, increasing the likelihood of obtaining an investment and raising money for a business .
Resource assessment: Writing a business plan helps entrepreneurs understand the resources, supplies and staff required to launch and operate the real estate business. This comprehensive assessment ensures that nothing is overlooked, from property acquisition and renovation costs to marketing expenses and administrative needs. By listing these requirements, entrepreneurs can plan for adequate funding and efficient resource allocation.
Strategic direction: A business plan outlines the business's short-term and long-term goals, providing a strategic direction for the real estate business. Entrepreneurs can define their target market, geographic focus and property types, enabling them to make informed decisions aligned with their objectives. This clarity prevents aimless pursuits and helps maintain focus on strategies that align with the business' vision.
Risk mitigation: A well-structured business plan anticipates potential challenges and outlines strategies to mitigate risks. Entrepreneurs can identify industry-specific challenges, such as market fluctuations or regulatory hurdles and devise contingency plans. By acknowledging these risks upfront, entrepreneurs can proactively address them and adapt their strategies as needed.
Operational efficiency: The business plan details the organizational structure, roles and responsibilities required to run the real estate business smoothly. Defining these elements helps entrepreneurs allocate tasks effectively and ensure that the right people are in place to execute the business strategies. This clarity enhances operational efficiency and minimizes the potential for confusion or overlaps.
Measurable progress: A business plan sets clear milestones and metrics to measure the real estate business' progress. Entrepreneurs can track key performance indicators (KPIs) against the projected goals, enabling them to assess their success and identify areas for improvement.
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A Real Estate Business Plan on One Page
Learn this method for creating a simple one-page real estate business plan to organize everything an agent wants to accomplish in a year on a single page. This tidy 1-3-5 format allows real estate professionals to focus on the key actions that specifically lead to the results they desire without having to endure the tiresome process of drafting more formalized business plans. Having a real estate business plan on a single page also allows agents to more easily refer and follow it’s actions steps by making it permanently visible on an office wall, on the cover of a 3-ring binder, on a projection screen at team meetings , or even by using it as a computer wallpaper background. As each item on the plan is crossed off, agents are assured that productive change and growth in direct alignment with their annual goals are steadily occurring. Before taking a look at some example plans, watch the following real estate coaching video to learn how to create a real estate business plan on a single page .
How to Create a One Page Real Estate Business Plan
Determine Your 1 Big Annual Goal
Start by establishing a specific and measurable goal for your annual real estate sales production next year. Typically agents will use objectives like total sales volume, gross commission income (GCI), number of units/properties sold, or even net income. It is important that a main goal has a numeric value associated with it so that it can be broken down into monthly and weekly portions for measuring progress throughout the year. For example, an agent that wants to sell 48 homes in a year knows that he or she must close approximately 4 transactions a month, or close to one property a week.
Establish 3 Key Focus Areas to Reach the Main Goal
Plan 5 Objectives for Each Key Focus Area
Break down your key focus areas into 5 specific objectives that are in alignment with each focus area. Each objective should represent a specific action or task that can be completed. The key to developing effective objectives is to ensure that they effectively correlate to each key focus area. Otherwise you will just have a scattered to-do list that is unlikely to ever be completed since it is not focused on the accomplishment of your preset objectives.
Use a single action step form for each of the 3 key focus areas on the business plan. This form will help you break down each objective into manageable action steps that different team members will be responsible for completing. This form provides many real estate teams with weekly team meeting agenda items that they can regularly discuss to ensure the team is moving forward towards their goals.
Sample Real Estate Business Plans & Action Steps Forms
We have provided two examples of one-page real estate business plans below. The first is for an individual/solo agent, and the second example is for more established real estate teams . We have also included a sample action steps page that can be used to supplement the team business plan. Feel free to click on each image below to enlarge them so you can get started on your own plan for this year.
Check out our latest article on Inman and download a free one page business p lan.
Sample Real Estate Business Plans. Download Yours Here.
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How To Write A Real Estate Business Plan
What is a real estate business plan?
8 must-haves in a business plan
How to write a business plan
Real estate business plan tips
Success in the real estate investing industry won’t happen overnight, and it definitely won’t happen without proper planning or implementation. For entrepreneurs, a real estate development business plan can serve as a road map to all of your business operations. Simply put, a real estate business plan will serve an essential role in forming your investing career.
Investors will need to strategize several key elements to create a successful business plan. These include future goals, company values, financing strategies, and more. Once complete, a business plan can create the foundation for smooth operations and outline a future with unlimited potential for your investing career. Keep reading to learn how to create a real estate investment business plan today.
What Is A Real Estate Investing Business Plan?
A real estate business plan is a living document that provides the framework for business operations and goals. A business plan will include future goals for the company and organized steps to get there. While business plans can vary from investor to investor, they will typically include planning for one to five years at a time.
Drafting a business plan for real estate investing purposes is, without a doubt, one of the single most important steps a new investor can take. An REI business plan will help you avoid potential obstacles while simultaneously placing you in a position to succeed. It is a blueprint to follow when things are going according to plan and even when they veer off course. If for nothing else, a real estate company’s business plan will ensure that investors know which steps to follow to achieve their goals. In many ways, nothing is more valuable to today’s investors. It is the plan, after all, to follow the most direct path to success.
8 Must-Haves In A Real Estate Business Plan
As a whole, a real estate business plan should address a company’s short and long-term goals. To accurately portray a company’s vision, the right business plan will require more information than a future vision. A strong real estate investing business plan will provide a detailed look at its ins and outs. This can include the organizational structure, financial information, marketing outline, and more. When done right, it will serve as a comprehensive overview for anyone who interacts with your business, whether internally or externally.
That said, creating an REI business plan will require a persistent attention to detail. For new investors drafting a real estate company business plan may seem like a daunting task, and quite honestly it is. The secret is knowing which ingredients must be added (and when). Below are seven must-haves for a well executed business plan:
Outline the company values and mission statement.
Break down future goals into short and long term.
Strategize the strengths and weaknesses of the company.
Formulate the best investment strategy for each property and your respective goals.
Include potential marketing and branding efforts.
State how the company will be financed (and by whom).
Explain who is working for the business.
Answer any “what ifs” with backup plans and exit strategies.
These components matter the most, and a quality real estate business plan will delve into each category to ensure maximum optimization.
A company vision statement is essentially your mission statement and values. While these may not be the first step in planning your company, a vision will be crucial to the success of your business. Company values will guide you through investment decisions and inspire others to work with your business time and time again. They should align potential employees, lenders, and possible tenants with the motivations behind your company.
Before writing your company vision, think through examples you like both in and out of the real estate industry. Is there a company whose values you identify with? Or, are there mission statements you dislike? Use other companies as a starting point when creating your own set of values. Feel free to reach out to your mentor or other network connections for feedback as you plan. Most importantly, think about the qualities you value and how they can fit into your business plan.
Goals are one of the most important elements in a successful business plan. This is because not only do goals provide an end goal for your company, but they also outline the steps required to get there. It can be helpful to think about goals in two categories: short-term and long-term. Long-term goals will typically outline your plans for the company. These can include ideal investment types, profit numbers, and company size. Short-term goals are the smaller, actionable steps required to get there.
For example, one long-term business goal could be to land four wholesale deals by the end of the year. Short-term goals will make this more achievable by breaking it into smaller steps. A few short-term goals that might help you land those four wholesale deals could be to create a direct mail campaign for your market area, establish a buyers list with 50 contacts, and secure your first property under contract. Breaking down long-term goals is a great way to hold yourself accountable, create deadlines and accomplish what you set out to.
3. SWOT Analysis
SWOT stands for strengths, weaknesses, opportunities, and threats. A SWOT analysis involves thinking through each of these areas as you evaluate your company and potential competitors. This framework allows business owners to better understand what is working for the company and identify potential areas for improvement. SWOT analyses are used across industries as a way to create more actionable solutions to potential issues.
To think through a SWOT analysis for your real estate business plan, first, identify your company’s potential strengths and weaknesses. Do you have high-quality tenants? Are you struggling to raise capital? Be honest with yourself as you write out each category. Then, take a step back and look at your market area and competitors to identify threats and opportunities. A potential threat could be whether or not your rental prices are in line with comparable properties. On the other hand, a potential opportunity could boost your property’s amenities to be more competitive in the area.
4. Investment Strategy
Any good real estate investment business plan requires the ability to implement a sound investment strategy. If for nothing else, there are several exit strategies a business may execute to secure profits: rehabbing, wholesaling, and renting — to name a few. Investors will want to analyze their market and determine which strategy will best suit their goals. Those with long-term retirement goals may want to consider leaning heavily into rental properties. However, those without the funds to build a rental portfolio may want to consider getting started by wholesaling. Whatever the case may be, now is the time to figure out what you want to do with each property you come across. It is important to note, however, that this strategy will change from property to property. Therefore, investors need to determine their exit strategy based on the asset and their current goals. This section needs to be added to a real estate investment business plan because it will come in handy once a prospective deal is found.
5. Marketing Plan
While marketing may seem like the cherry on top of a sound business plan, marketing efforts will actually play an integral role in your business’s foundation. A marketing plan should include your business logo, website, social media outlets, and advertising efforts. Together these elements can build a solid brand for your business, which will help you build a strong business reputation and ultimately build trust with investors, clients, and more.
First, to plan your marketing, think about how your brand can illustrate the company values and mission statement you have created. Consider the ways you can incorporate your vision into your logo or website. Remember, in addition to attracting new clients, marketing efforts can also help maintain relationships with existing connections. For a step by step guide to drafting a real estate marketing plan , be sure to read this guide.
6. Financing Plan
Writing the financial portion of a business plan can be tricky, especially if you are starting your business. As a general rule, a financial plan will include the income statement, cash flow, and balance sheet for a business. A financial plan should also include short and long-term goals regarding the profits and losses of a company. Together, this information will help make business decisions, raise capital, and report on business performance.
Perhaps the most important factor when creating a financial plan is accuracy. While many investors want to report on high profits or low losses, manipulating data will not boost your business performance in any way. Come up with a system of organization that works for you and always ensure your financial statements are authentic. As a whole, a financial plan should help you identify what is and isn’t working for your business.
7. Teams & Small Business Systems
No successful business plan is complete without an outline of the operations and management. Think: how your business is being run and by whom. This information will include the organizational structure, office management (if any), and an outline of any ongoing projects or properties. Investors can even include future goals for team growth and operational changes when planning this information.
Even if you are just starting or have yet to launch your business, it is still necessary to plan your business structure. Start by planning what tasks you will be responsible for, and look for areas you will need help with. If you have a business partner, think through your strengths and weaknesses and look for areas you can best complement each other. For additional guidance, set up a meeting with your real estate mentor. They can provide valuable insights into their own business structure, which can serve as a jumping-off point for your planning.
8. Exit Strategies & Back Up Plans
Believe it or not, every successful company out there has a backup plan. Businesses fail every day, but investors can position themselves to survive even the worst-case scenario by creating a backup plan. That’s why it’s crucial to strategize alternative exit strategies and backup plans for your investment business. These will help you create a plan of action if something goes wrong and help you address any potential problems before they happen.
This section of a business plan should answer all of the “what if” questions a potential lender, employee, or client might have. What if a property remains on the market for longer than expected? What if a seller backs out before closing? What if a property has a higher than average vacancy rate? These questions (and many more) are worth thinking through as you create your business plan.
How To Write A Real Estate Investment Business Plan: Template
The impact of a truly great real estate investment business plan can last for the duration of your entire career, whereas a poor plan can get in the way of your future goals. The truth is: a real estate business plan is of the utmost importance, and as a new investor it deserves your undivided attention. Again, writing a business plan for real estate investing is no simple task, but it can be done correctly. Follow our real estate investment business plan template to ensure you get it right the first time around:
Write an executive summary that provides a birds eye view of the company.
Include a description of company goals and how you plan to achieve them.
Demonstrate your expertise with a thorough market analysis.
Specify who is working at your company and their qualifications.
Summarize what products and services your business has to offer.
Outline the intended marketing strategy for each aspect of your business.
1. Executive Summary
The first step is to define your mission and vision. In a nutshell, your executive summary is a snapshot of your business as a whole, and it will generally include a mission statement, company description, growth data, products and services, financial strategy, and future aspirations. This is the “why” of your business plan, and it should be clearly defined.
2. Company Description
The next step is to examine your business and provide a high-level review of the various elements, including goals and how you intend to achieve them. Investors should describe the nature of their business, as well as their targeted marketplace. Explain how services or products will meet said needs, address specific customers, organizations, or businesses the company will serve, and explain the competitive advantage the business offers.
3. Market Analysis
This section will identify and illustrate your knowledge of the industry. It will generally consist of information about your target market, including distinguishing characteristics, size, market shares, and pricing and gross margin targets. A thorough market outline will also include your SWOT analysis.
4. Organization & Management
This is where you explain who does what in your business. This section should include your company’s organizational structure, details of the ownership, profiles on the management team, and qualifications. While this may seem unnecessary as a real estate investor, the people reading your business plan may want to know who’s in charge. Make sure you leave no stone unturned.
5. Services Or Products
What are you selling? How will it benefit your customers? This is the part of your real estate business plan where you provide information on your product or service, including its benefits over competitors. In essence, it will offer a description of your product/service, details on its life cycle, information on intellectual property, as well as research and development activities, which could include future R&D activities and efforts. Since real estate investment is more of a service, beginner investors must identify why their service is better than others in the industry. It could include experience.
6. Marketing Strategy
A marketing strategy will generally encompass how a business owner intends to market or sell their product and service. This includes a market penetration strategy, a plan for future growth, distribution channels, and a comprehensive communication strategy. When creating a marketing strategy for a real estate business plan, investors should think about how they plan to identify and contact new leads. They should then think about the various communication options: social media, direct mail, a company website, etc. Your business plan’s marketing portion should essentially cover the practical steps of operating and growing your business.
Additional Real Estate Business Plan Tips
A successful business plan is no impossible to create; however, it will take time to get it right. Here are a few extra tips to keep in mind as you develop a plan for your real estate investing business:
Tailor Your Executive Summary To Different Audiences: An executive summary will open your business plan and introduce the company. Though the bulk of your business plan will remain consistent, the executive summary should be tailored to the specific audience at hand. A business plan is not only for you but potential investors, lenders, and clients. Keep your intended audience in mind when drafting the executive summary and answer any potential questions they may have.
Articulate What You Want: Too often, investors working on their business plan will hide what they are looking for, whether it be funding or a joint venture. Do not bury the lede when trying to get your point across. Be clear about your goals up front in a business plan, and get your point across early.
Prove You Know The Market: When you write the company description, it is crucial to include information about your market area. This could include average sale prices, median income, vacancy rates, and more. If you intend to acquire rental properties, you may even want to go a step further and answer questions about new developments and housing trends. Show that you have your finger on the pulse of a market, and your business plan will be much more compelling for those who read it.
Do Homework On The Competition: Many real estate business plans fail to fully analyze the competition. This may be partly because it can be difficult to see what your competitors are doing, unlike a business with tangible products. While you won’t get a tour of a competitor’s company, you can play prospect and see what they offer. Subscribe to their newsletter, check out their website, or visit their open house. Getting a first-hand look at what others are doing in your market can greatly help create a business plan.
Be Realistic With Your Operations & Management: It can be easy to overestimate your projections when creating a business plan, specifically when it comes to the organization and management section. Some investors will claim they do everything themselves, while others predict hiring a much larger team than they do. It is important to really think through how your business will operate regularly. When writing your business plan, be realistic about what needs to be done and who will be doing it.
Create Example Deals: At this point, investors will want to find a way to illustrate their plans moving forward. Literally or figuratively, illustrate the steps involved in future deals: purchases, cash flow, appreciation, sales, trades, 1031 exchanges, cash-on-cash return, and more. Doing so should give investors a good idea of what their deals will look like in the future. While it’s not guaranteed to happen, envisioning things has a way of making them easier in the future.
Schedule Business Update Sessions: Your real estate business plan is not an ironclad document that you complete and then never look at again. It’s an evolving outline that should continually be reviewed and tweaked. One good technique is to schedule regular review sessions to go over your business plan. Look for ways to improve and streamline your business plan so it’s as clear and persuasive as you want it to be.
Reevauating Your Real Estate Business Plan
A business plan will serve as a guide for every decision you make in your company, which is exactly why it should be reevaluated regularly. It is recommended to reassess your business plan each year to account for growth and changes. This will allow you to update your business goals, accounting books, and organizational structures. While you want to avoid changing things like your logo or branding too frequently, it can be helpful to update department budgets or business procedures each year.
The size of your business is crucial to keep in mind as you reevaluate annually. Not only in terms of employees and management structures but also in terms of marketing plans and business activities. Always incorporate new expenses and income into your business plan to help ensure you make the most of your resources. This will help your business stay on an upward trajectory over time and allow you to stay focused on your end goals.
Above all else, a real estate development business plan will be inspiring and informative. It should reveal why your business is more than just a dream and include actionable steps to make your vision a reality. No matter where you are with your investing career, a detailed business plan can guide your future in more ways than one. After all, a thorough plan will anticipate the best path to success. Follow the template above as you plan your real estate business, and make sure it’s a good one.
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