What To Consider When Creating Your Real Estate Business Plan

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Real Estate Technology with 855-419-6019

A goal without a plan is just a wish. Antoine de Saint-Exupery

 

As a former consultant, the first thing I would ask the business owner(s) with a problem or opportunity was to see their business plan. If they did have one it was often dated or poorly written with little critical thought. Most often they had nothing, which is why I was sitting in their office.

 

Real estate professionals are some of the most egregious violators of business plan neglect. This is due in great part to the nature of the industry which has a very low barrier to entry and the fact most agents or brokers enter the industry working under a business which already has several processes planned out.

 

However, at the end of the day, you are still likely considered an independent contractor. This means you are a business or person who provides services to another entity for specified terms. In other words, you need a business plan.  

 

If you haven’t caught on by now, the importance of creating and maintaining a business plan is fundamental to success. All business plans contain very similar sections such as:

 

  • Executive Summary

  • Market Analysis

  • Company Description

  • Management & Organizational Structure

  • Marketing & Sales Strategies

  • Products and Services

  • Financial Resources & Forecasts

There are also some not so obvious aspects to a business plan you should consider as well.

 

Define Your Culture

“Our number one priority is company culture. Our whole belief is that if you get the culture right, most of the other stuff like delivering great customer service or building a long-term enduring brand will just happen naturally on its own.” Tony Hsieh

 

Everyone talks about culture, but few actually do what they say. Define what your workplace personality is and live it, and ensure everyone you hire is comfortable living it. This reduces the chances of conflict and other forms of drama that are counterproductive to success. If it is written in your business plan this helps to solidify your culture goals.

 

Culture should be reduced to a set of simple yet substantial core values, a list of unwavering tenets which set and reinforce everything from how you make decisions to how you treat people.

 

[Good Read: How BoomTown Established Core Values Way Back in 2012!]

 

Focus On People

I invest in people, not companies. Daymond John

 

People are your most important asset, especially in a customer service centric industry such as real estate. They are the ones responsible for executing your plans. Be self aware enough to hire for your weaknesses. Or in other words, hire people who are smarter than you.

 

The smartest people I’ve met understand what they don’t know and surround themselves with people who do.

 

[Good Read: How Hiring the Right People Affects Your ROI]

 

Keep It Flexible

No battle plan survives contact with the enemy. Sun Tzu

 

Things change, evolve and sh*t just happens that will affect even the most well researched and thought out business plans. Trying to forecast what will happen in business the first six months to a year is hard. Forecasting two years out is fiction. Three years out, science fiction. You’re not Nostradamus.

 

Be prepared to revisit and adjust your business plan at least quarterly. It should be a living document which changes and molds to your business and goals. And don’t forget: experiment often, assess risk, have contingencies and explore alternatives!

 

What are your not-so-obvious business plan elements you think are vital to consider?

 

 

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Rainmaker
885,963
David Alan Baker Laveen & South Phoenix Realtor
Keller Williams Realty Phoenix - Laveen, AZ
Your local Expert

Sh*t does indeed happen, that is truly a great ingredient to make this all work, coming back to anaylize.

Feb 03, 2016 03:03 AM #1
Rainmaker
1,508,825
Inna Ivchenko
Barcode Properties - Encino, CA
Realtor® • Green • GRI • HAFA • PSC Calabasas CA

As they say: adopt of die. If you can not adjust yourself and your business, chances are you might be left behind. 

Feb 03, 2016 04:04 AM #2
Ambassador
4,309,924
Praful Thakkar
LAER Realty Partners - Andover, MA
Andover, MA: Andover Luxury Homes For Sale

Kelly at BoomTown hiring right people is the key to success in perhaps any business - more so in Real Estate.

Great post.

Feb 03, 2016 11:41 AM #3
Rainmaker
536,982
Mark Don McInnes, Sandpoint
Sandpoint, ID
North Idaho Real Estate - 208-255.6227

Excellent post with details to pay attention to.  Thank you.  Mark

Feb 03, 2016 12:58 PM #4
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Rainmaker
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Steven at BoomTown

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