Your business plan is the foundation of your business, a roadmap for how to structure and manage a real estate brokerage. Having a business plan in place provides opportunities to obtain business loans from an investor or to convince people to work with you.
When writing a business plan you need to state the company’s objectives and mission set forth to achieve the company’s goals. Just to give you a few ideas, you definitely want to mention on your business plan what services will you be providing to the public. Will you specialize in residential sales, commercial sales, property management, or will you be a one-stop shop for all real estate services?
Besides the services offered, your business plan should have the market analysis research you have prepared to forecast into the future the potential earnings the company can generate. The total start-up costs involved to open a brokerage firm and the total expenses to run, manage, and maintain the brokerage firm opened for a minimum of 2-3 years.
The company’s objectives, are the short-term goals you have in place to achieve an outcome. Before being able to write about the company’s objectives, you will first need to write down the company’s long-term vision of what the future entails.
Once you have the vision in place, you can start writing down the different strategies on how you plan on achieving the company’s vision. What steps are needed to achieve these goals? What is required from management and the sales associates to accomplish these goals?
Once you have established the strategies, you can start to write down all the company’s objectives. What kind of services will be offered to customers and clients? What fees will be charged? What techniques will be used to achieve sales goals? Will the Agents you hire have mandatory training? Etc.
Another important component of a business plan is writing the company’s mission statement. You want to emphasize the company’s mission, not only to your management team, employees, sales associates but most importantly to the consumers who plan on doing business with your company in the near future.
The mission statement should state what the company’s hopes to achieve and how the company plans on achieving these goals. Besides the company’s goals, the mission statement should include the company’s ongoing mission which should include providing the highest level of professional services to promote the client’s best interest.
Start-up & Reserves
Besides corporate & legal structures, there are plenty of other expenses that must be taken into consideration. Some of those expenses will entail of paying mortgage or rent, utilities, office furnishing, office supplies, insurance, employees, telephone & internet services, transactional management & CRM software, advertising, marketing, web designing, business cards, signs, brochures, mailing/postal, and any other miscellaneous fees that should be taken into consideration when drafting a business plan and budget.
At RBO we believe that opening your Real Estate business without a well-written business plan is like having a rowboat that has no oars, no map no sextant or compass for direction. With that said we believe that putting the time to draft out a well thought out business plan is an essential element to any successful Real estate brokerage businesses. Your business plan will always serve as your guide, and of course, as your business grows you can always edit and re-route but always focused on meeting the goals that are set forth in this very important document.