REAL ESTATE BUSINESS PLANNING

Many Real Estate Brokers and Agents Ask:
What is Real Estate Business Planning?

A real estate business plan is the roadmap to reaching your dreams and achieving a six figure income. A good real estate business plan consists of a written outline of your real estate business with a specific set of instructions where you want to take your real estate business and what you need to do to manage towards your desired outcome. A well-conceptualized real estate business plan is long-term compass, one that will keep your real estate career on track, regardless of the business climate.

Why Have a Real Estate Business Plan?

Jumping into real estate, whether as a broker, manager or agent, without a plan is foolish. Business planning helps coordinate your activities, decisions and options. Business planning also saves money, time, and effort and renders the best result.

To succeed in any business, including real estate requires thought and planning, the evaluation of options, identification of hurdles, organization of priorities, the creation of strategies and the decisiveness of execution.

One of the top reasons for failure is the lack of foreword thinking. Every business, including real estate firms, requires constant analysis and planning. If your business is succeeding you need to know why it is succeeding. If it is failing, you need to find out why.

What should be included in a Real Estate Business Plan?

Any real estate business plan should include aspects such as:
  • A detailed description of and assessment of your current real estate business situation;
  • A definition of your real estate business focus and longer term strategic intent;
  • A vision of what results you want to achieve in your real estate business;
  • A list of action activities that you will utilize to achieve your goals;
  • A marketing plan to expand and grow your real estate business;
  • A financial plan including an Income Projection Statement (revenue and expenses) for last three years, Monthly Cash Flow Projection and Balance Sheet.
What are the Steps in Creating a Real Estate Business Plan?

In short, examine your real estate businesses strengths and weaknesses. Review your company vision and focus, then set your objectives and determine the results you want to see. Regularly perform a reality check and adjust accordingly.

Understand and anticipate that things will go wrong. By analyzing dangers before they occur, you can minimize the risk of being caught off guard. Based on possible events, forecast your worst case scenario and prepare contingency plans – thus always making sure you have a “Plan B.”

Remember to Have the Right Attitude

  • Firstly you need to have passion for your clients, your industry, and the type your of business. With passion you are halfway to your success.
  • Secondly you must have a vision towards what you are working and what exactly you want to achieve.
  • Following your vision thirdly is a desire to grow your Real Estate Business and improve revenue and profitability. Included in this is a drive to know your costs and contain it.
  • Fourthly, you will need the right tool to set up this plan. Wasting money on the wrong product will increase your frustrations and decrease productivity resulting in less profitability.
  • In the fifth place, you will need commitment to keep to your business plan and review it often to ensure that you are still going where you want to go.
The Best Solution for Real Estate Business Planning

Fortunately a simple, online step-by-step solution is now available for real state brokers and agents that need to create a real estate business plan. One of the advantages of using an online business planning software is that real estate agents don’t need to be financial geniuses to create a real estate business plan.

By answering basic questions such as:
  • What is your real estate commission structure?
  • What are your average earnings from a buyer or a listing?
  • What is your average sales price or what is the average sales price in my area?; etc,
From this information you can create a business plan in a matter of minutes.

The CreateAPlan real estate business planning software was designed specifically for real estate agents and is not a generic product that needs to be adapted. It already has all the real estate
industry verbiage and real estate terms such as listings, closing, the different real estate marketing expenses, different real estate commission splits, direct mail costs on just listed or just sold cards, newspaper and internet real estate advertising, flyers and brochures, signs, business cards, cell phone, lock boxes, auto expenses, closing gifts, and much, much more.

Since successful real estate agents are usually involved with a variety of sales generating activities such as cold calling, farming, canvassing, sphere of influence development, media advertising, stealth internet site traffic capture, drip email campaigns, and open houses, the business planning tool deals with all those options and scenarios. By using CreateAPlan as an activity log, agents can track their actions and decisions, easily see where they are getting their appointments and ultimately the best source to generate more real estate business.

For more information on the CreateAPlan Real Estate Business Planning Software for real estate agents visit their website at www.CreateAPlan.com.

Executing Your Real Estate Business Plan

A good real estate business plan does not guarantee real estate success, but it significantly improves the odds. Great plans fail because people hesitate, lose focus or interest or just plain forget. Make sure that you are not sidetracked by playing another game or wasting resources on less important activities. Stay on track and push forward with determination, tenacity and persistence.
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