Real estate agencies are key players in facilitating property transactions. First, they are responsible for centralizing all the properties (often in the region) offered for sale (or rental). Then, from making contact to signing the deal (or the rental contract), they accompany their customers and offer flexible and personalized solutions.
Creating a real estate agency is a business idea that inspires many entrepreneurs.
However, before starting, it is necessary to write a serious and complete business plan.
Such a document allows for establishing the development strategy of your real estate agency by reflecting, for example, on the first expenses, the business model, the current costs, the profitability indicators, and the future earnings of your real estate agency.
Similarly, the business plan of your real estate agent can be used as support in the context of a request for financing from a financial institution.
What should be included in the business plan of a real estate agency?
What structure to adopt?
Can we analyze the starting budget of your real estate agency?
What are the financial indicators to be presented in this document?
How to establish the break-even point of a real estate agency?
THE PROCESS FOR THE BUSINESS PLAN OF A REAL ESTATE AGENCY
WHY WRITE A BUSINESS PLAN?
The establishment of a business plan for its real estate agent gives the possibility of:
– analyzing the figures and data related to the real estate market
– grouping consumption habits related to the real estate sector
– studying the factors of success of a real estate agency
– identify your market segments, as well as their preferences
– think about a sustainable value proposition for your real estate agency
– analyze competing real estate agencies and their characteristics
– highlight competitive advantages for your real estate agency
– present, through the Business Model Canvas, the business model of your real estate agency
– set up a strategy in detail (to become profitable)
– anticipate events that may threaten the existence of your real estate agency
– show a banking institution that your new project is capable of generating profits
Our team members have ensured to build a business plan for a real estate agency that responds well to these purposes.
WHAT PLAN TO ADOPT FOR THE BUSINESS PLAN OF A REAL ESTATE AGENCY?
This document presents a large batch of elements, variables, and studies. However, it is essential to group them all well to have a serious record.
This is what we have done in our business plan for a real estate agency, which is divided into five parts that we present to you now.
The part that opens the business plan corresponds to the “Market Opportunity.” In this part, we will study the real estate market figures. Figures and data are updated every six months.
This part also makes it possible to summarize the notable trends (for example, online training on real estate investment, digital real estate marketing, Visio-visit or virtual visit, the rise of short-term rentals, or even new Real estate agencies).
To conclude, we identify the elements that allow a real estate agency to exceed its break-even point.
The second part refers to the “Company Presentation.” It allows us to introduce your real estate agency (Where is the real estate agency located, and what is its area of activity? Will you also offer real estate management in addition to the sale of goods? Is it specialized in the sale of certain assets (goodwill, buildings, housing to renovate, etc.)? etc.).
This part also discusses the value proposition of your real estate agency. Finally, you will find the presentation of the project leader (the person in charge of this business project).
Then comes the part called “Market Research,” which will make it possible to identify the different customer profiles for your real estate agency.
It also presents the various competitors via a competitive study. This part includes, among other things, a SWOT, which is a privileged tool to identify the strengths and weaknesses of your project while introducing potential opportunities and threats.
The “Strategy” part will then allow us to present a long-term plan containing the initiatives that will allow your real estate agent to generate profits.
It details, in particular, a marketing strategy that will lead to sustainable growth.
Finally, our business plan for a real estate agency presents a section entitled “Finances,” which supports showing all the tables and financial indicators of your real estate agency.
HOW TO DO THE EXECUTIVE SUMMARY FOR A REAL ESTATE AGENCY?
You can download our Executive Summary for a real estate agency.
It is necessary to adhere to certain rules for your real estate agency’s executive summary to be successful.
First, this document should be of reasonable length—no need to do more than 1000 or 1500 words. In reality, it serves as an introduction to the business plan of your real estate agency.
In addition, it must be didactic; that is to say, it must make it possible to demonstrate that your real estate agent represents a (potentially) profitable project.
Do not make grammatical mistakes and emphasize the strengths of your business project (for example: presenting professional and neat real estate advertisements, having a good base of customers who can provide positive testimonials of recent transactions, accompanying the customer on potential legal issues, or even makes sure to fully understand the needs of its customers (to offer them personalized offers)).
HOW TO PROPERLY WRITE A MARKET STUDY FOR A REAL ESTATE AGENCY?
You can download our market study for a real estate agency.
A market study for your real estate agent allows you to understand factors outside your business project, such as the characteristics of demand, recent changes, and the number of competitors.
Every entrepreneurial adventure should start with rigorous market research.
How to succeed? A certain number of elements must be structured.
Here is the data that we include in the “Market Research” part of our business plan for a real estate agency :
– recent figures and data concerning the real estate market
– the latest innovations that have emerged in the real estate sector
– the market segments of your real estate agency
– the competitive study
– the competitive advantages
– the SWOT analysis for a real estate agency
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