How to Create a Business Plan for a Real Estate Agent

A real estate agent is considered self-employed.

Real estate agents use business plans to help their businesses prosper and grow. As a real estate agent, you are considered self-employed, making you responsible for the funding, growth and success of your real estate business. Using a business plan to map out your goals allows you to follow a plan to determine how you will reach them. Reviewing your business plan can reveal how well your marketing is working and what changes may be required for your business.

Instructions

1. Create a cover sheet for your real estate business plan that includes your name, address, phone number and the date of the plan.

2. Compose a mission statement on your first page. As a real estate agent, your mission should read something like: "My mission is to use my knowledge and training to provide excellent customer service when assisting clients with buying or selling a home." Be clear when writing your statement and use specific keywords relating to real estate sales such as property, listing, buying and selling.

3. Write a "Statement of Purpose" for your business plan on the same page as your mission statement. This statement provides information on who you are as a real estate agent and what made you decide to pursue this career path. Include professional interests and how you plan to proceed as a real estate agent.

4. List the details of your real estate business next in your business plan. This section should be around one page in length and summarize your business. List your real estate sales and listings to date. Also, include key elements about the real estate industry such as the market conditions in your area.

5. Make a reference to your type of business entity such as a limited liability company (LLC) or sole proprietor. Include reasons you chose to use this legal structure along with a copy of your real estate license.

6. Refer to the services you can offer in the next section. This includes listing property, writing contracts, assisting investors and any other service you perform as a real estate agent. List the reason, such as education and licensing, why you are able to perform these services. Also include any certifications or organization memberships, such as National Association of Realtors (NAR) that augment your services.

7. State in the next section what type of business insurance you carry, such as errors and omissions (E&O). Provide proof of your real estate insurance in the form of a declaration page.

8. Write a one-page summary page of your real estate marketing plan. Include all of the forms of marketing such as business cards, websites and advertisements. Highlight this section by including how well your marketing has worked in the real estate market, how many homes you have sold due to marketing and how you plan to change or improve your marketing techniques.

Tips & Warnings

• Make your business plan longer or shorter depending on what you will use it for.

• Lenders and investors often require a business plan for real estate agents.

References

• Entrepreneur: 15 Reasons you need a Business Plan
• Small Business Association: How to Write a Business Plan
• National Association of Realtors: About NAR
• Waubonsee: Business Start Up Guide

Resources

• Realty Times: Create a Life Design not a Business Plan