How to Write a Business Plan for a Real Estate Agent
Writing a business plan requires some effort as it should be comprehensive and include as many variables and possible solutions as possible. Writing a business plan for a real estate agent is very similar to writing a plan for a small business, as the agent is in a sense his own small business. Unless the real estate agent is seasoned and knows the industry well, it can be difficult to predict future income as the market heavily dictates sales.
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Instructions
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Take stock and gather all business related information. If the business is a start-up, determine all necessary start-up expenses. These may include, licensing, office rental, brokerage fees, office supplies (fax, printer, paper, pens), computer, marketing materials (business cards, signs, logo), car and associated expenses. Determine ongoing expenses. These may include office utilities (phones, Internet, electricity), marketing, estimate what the necessary monthly expenses will be. Always be conservative when estimating costs and err on the side of things costing more to stay safe. After these figures have been determined, it will be a lot easier to find out how much the agent needs to make to pay his expenses.
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Research the real estate market and prospective sales. Use industry publications like those offered at RealtyTimes.com to see how strong the market is in the agent's geographical region. Ask other agents how their sales are. Estimate how many sales will be required to pay both personal and professional expenses. Relate those sales numbers to the industry sales figures and see how likely it will be to exceed, meet or fall short of those projected sales numbers. Unfortunately the real estate business is cyclical, and it can be difficult to tell how many sales will occur in a given month, especially as a new agent.
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Determine a marketing plan. Successful real estate agents market themselves well--they have many contacts and know many people. Create a schedule of industry events, networking functions and other gathering where an agent can find potential clients. It may be difficult for a real estate agent to purchase advertising (billboard, print, radio, television) when they are starting out, but it is necessary to do some sort of marketing. The most cost-effective marketing method is meeting people and gaining contacts. Then use those contacts to gain more contacts.
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Write down a plan of action. This should be chronological and include specifics about what the agent needs to begin; what the agent needs to do; and what the agent will do to ensure the success of the business. The plan should loosely read like a story, a story of how this real estate agent will be successful. Include as much detail and be as specific as possible.
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