If we would have a large table here, asking one by one about the question: What is the most common mistake that most beginners often do when entering Real Estate Agent Business, most professional and expert realtor or broker would definitely raise their hands and say quickly: They lack of a well-thought and concrete, action-based business plan.
The common reason why most real estate folks don’t have a business plan is because most of them often see Real Estate as a “Job”, well in fact, getting into Real Estate is actually a business, we all know that, it's a profitable business that always requires you to have an efficient and concise business plan that works just like any other businesses out there.
So while it’s great and required to have a real estate license by enrolling to a real estate brokerage or real estate school you preferred, it’s also important and required to have your business plan created at the first place.
It helps you to avoid most early stages and startups mistakes such as wasting too much time and money for marketing, failing to analyze your performance and not having the right knowledge and resources on getting potential clients for your business.
And just like what I was talking about every single day (And I won’t stop, really), building a business plan that you can be proud of is the first and foremost step to take, that every beginners should know.
Furthermore, getting started is easy because I’ve already provided you this “FREE 30 Day Real Estate Business Plan Video Course” when you sign up on our blog. So on top of this short article, I’ll discuss why having a real estate business plan is important to you and to your business.
1. Having a plan open up an opportunity to test out new ideas and implement it as soon as possible. When you have ideas that would pop up in your mind unknowingly, you can easily implement and test if they would make any changes for your growth.
2. You’ll have a clear statement of mission, vision and core message of your real estate business. The most essential part of any startup businesses, whether real estate or not, is to have a clear and concsice words about the purpose of your company. Without it, you can never deliver what your promises and benefits are which can caused uncertainty to your audience and can reduce their trust over you.
3. You will be on track because having a plan creates a baseline and blueprint for your business growth. Ever wonder why building a house requires a floor plan and everything? A plan serves as a foundation and visual presentations about your company even you haven’t seen yet what would be the outcome. The most important thing is you’ll know what you’ll do and how you’ll start.
4. You can focus more of your energy and time on what really matters. Being productive at work every single day is crucial. When we have a plan we can easily execute our work because we have an action-based tasks that reflects our business goals.
5. Having a plan provides benchmarks which you can use to track your performance. You might not pay attention to track your performance too much because you have so much things you want to be done first, especially if you’re just starting up. The importance of having a plan that tracks your performance is it technically records all the current events and status on what’s going on with your business.
6. You can see the whole picture of what your clients really want and looking for. Knowing your target market is much more easier with the use of technology – and additionally, real estate isn’t a buzzy business after all. Everyone knows what their target market is, but if you have a plan, you’ll learn specifically your target people on what are they doing, what interests them and so on, aside from only knowing where do they live and what’s their profession.
7. You can easily line up your strategies to face your existing competitors in the industry. Competition is alive even in Real Estate Industry. But what makes business plan important in facing your competitors is you can easily line up the strategies that could make you stand out among them. You’ll know what’s lacking in your business by comparing their strategies to yours so you can easily make an adjustment and other improvements.
8. You’ll know what your business is lacking, including strengths and weaknesses. There’s always a weakness and strength in every businesses, if you have a well-thought plan, you can clearly made a step back and assessment about your performance.
9. You’ll have a roadmap for achieving your goals and objectives. As you have a blueprint, having a roadmap for your business points you to the right direction that places your business goals.
10. You can clearly set the descriptions of the services you offer. If you have a plan you can clearly write what your business is all about and what is your work. As a result, you can surely maximize your networking to potential clients because you know how you can help them with their real estate problems.
11. Proper budgeting for your marketing strategies. Increasing your brand awareness and promoting to people might cost you too much, especially if you haven’t plan your budget or fund for your marketing campaigns. Having a plan that covers your finances will help you minimize your cost per acquisition and increase a chance of better ROI.
12. Analysis of your revenues, costs, and projected profits. Aside from budgeting, you can also have reports of your income over costs that’s recorded.
13. You can have the plan on how you can make more money and stay in business. Keeping the balance between failure and success is inevitably not that easy. So to make sure you’re still earning despite of failures and mistakes, your business plan will tell you what’s the best action to take in every kind of situation.
14. You’ll have a concrete plan that can prevent you from hitting unwanted and unecessary roadblocks. If you have a plan, doesn’t matter if you hit different roadblocks through your way up to success because you can easily turn up any miserable situations into an opportunity to grow and improve.
15. You’ll have clear-eyed analysis of your industry, including opportunities and threats. Being in the industry and staying in the field of Real Estate Business or any profitable ones, is not that hard to you unless you always keep an eye with your business and you’re aware of everything that go along your way.
Wrap it up!
So these are the list why having a real estate business plan is important if you want to kickoff your business if you still don’t know where you’ll go. By knowing all of these, you can easily set up your business and everything on the right track and you’ll know how you can assess everything inside your company.
If you truly want to build a 6-figure Real Estate Business and become a real estate superstar but don’t have any experience yet (Yes, beginner. Absolutely.), you’ll find yourself groping around blindly because you don’t know where you’ll go and what things to consider just to get started.
A strong business plan will help you get all things on track even you hit a number of roadblocks along your way. It helps you to continuously manage your real estate business and properly handle all the failures and hindrances you’ll cope with in the near future.
So, did you already created your business plan? How’s it going? Tell us.
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