HARRY’S TOP 5 MISTAKES WHEN CREATING A REAL ESTATE BUSINESS PLAN
Recently, I opened my own real estate brokerage named Phoenix Property Management located in Phoenix, Arizona. We focus on three areas which include management, sales and rehab. I spent six months in developing a plan to be on my own. I researched and consulted with experts to go over my business plan to fine tune it until it was time to take the steps to make it a reality. I am still working off my business plan. Yes, I need to tweak it at times. However, the business plan is my compass to keep me moving forward in the right direction.
I personally believe it is vital for all of us to create a business plan for each one of us so that we have a road map to arrive at our destination. I see so many real estate agents not focused and frustrated. This can be remedied by establishing a solid business plan. Furthermore, I would highly recommend that real estate agents on having a mentor to keep one accountable during this critical time.
HARRY’S TOP 5 MISTAKES CREATING A BUSINESS PLAN
- UNREALISTIC FINANCIAL PROJECTIONS-I am going to make $1 million in my first year in real estate. How many of you have witnessed this from a new Realtor? Setting realistic financial projections creates a true picture for oneself.
- Opportunity-I believe the real estate agent needs to define who they will serve such as first time home buyers. Otherwise, one will do a shot gun approach to real estate and become frustrated because of no accomplishment.
- No Marketing Plan-A real estate agent needs to define a solid marketing plan so people know that they exist when thinking about leasing, buying or selling real estate. Too many real estate agents miss the mark.
- Competition-Real estate agents do not analyze the competition in their own local markets. Who is my competition? How will I compete with my competition?
- Budgets-Real estate agents do not create realistic budgets when it comes to expenses. Many of them ignore living expenses needed to sustain themselves. Furthermore, most agents do not have marketing in their budget. We receive many calls each month to purchase marketing devices that will increase our business by 25%. Focus and being frugal is needed when starting off in the real estate business.
I encourage all of us to avoid these mistakes when creating a business plan in order to achieve the unthinkable. One must be focus and determined to achieve the business plan. Also, other people will need to be involved in order to achieve the plan. I see #5 being the biggest mistake with many real estate agents starting their business in the first two years.
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