business plan for new real estate agent

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• Writing a Business Plan

Writing a business plan may seem a daunting task as there are so many moving parts and concepts to address. Take it one step at a time and be sure to schedule regular review (quarterly, semi-annually, or annually) of your plan to be sure you on are track to meet your goals.

Why Write a Business Plan?

Making a business plan creates the foundation for your business. It provides an easy-to-understand framework and allows you to navigate the unexpected.

Quick Takeaways

• A good business plan not only creates a road map for your business, but helps you work through your goals and get them on paper
• Business plans come in many formats and contain many sections, but even the most basic should include a mission and vision statement, marketing plans, and a proposed management structure
• Business plans can help you get investors and new business partners

Source: Write Your Business Plan: United States Small Business Association

Writing a business plan is imperative to getting your business of the ground. While every plan is different – and most likely depends on the type and size of your business – there are some basic elements you don’t want to ignore.

Latest on this topic

NAR Library & Archives has already done the research for you. References (formerly Field Guides) offer links to articles, eBooks, websites, statistics, and more to provide a comprehensive overview of perspectives. EBSCO articles ( E ) are available only to NAR members and require the member's nar.realtor login.

Defining Your Mis​sion & Vision

Writing a business plan begins by defining your business’s mission and vision statement. Though creating such a statement may seem like fluff, it is an important exercise. The mission and vision statement sets the foundation upon which to launch your business. It is difficult to move forward successfully without first defining your business and the ideals under which your business operates. A company description should be included as a part of the mission and vision statement. Some questions you should ask yourself include: 

• What type of real estate do you sell?
• Where is your business located?
• Who founded your business?
• What sets your business apart from your competitors?

What is a Vision Statement ( Business News Daily , Jan. 16, 2024)

How to Write a Mission Statement ( The Balance , Jan. 2, 2020)

How to Write a Mission Statement ( Janel M. Radtke , 1998)

Using a SWOT Analysis to Structure Your Business Plan

Once you’ve created a mission and vision statement, the next step is to develop a SWOT analysis. SWOT stands for “Strengths, Weaknesses, Opportunities, and Threats.” It is difficult to set goals for your business without first enumerating your business’s strengths and weaknesses, and the strengths and weaknesses of your competitors. Evaluate by using the following questions:

• Do you offer superior customer service as compared with your competitors?
• Do you specialize in a niche market? What experiences do you have that set you apart from your competitors?
• What are your competitors’ strengths?
• Where do you see the market already saturated, and where are there opportunities for expansion and growth?

Strength, Weakness, Opportunity, and Threat (SWOT) ( Investopedia , Oct. 30, 2023)

How to Conduct a SWOT Analysis for Your Small Business ( SCORE , Apr. 28, 2022)

SWOT Analysis Toolbox ( University of Washington )

Setting ​Business Goals

Next, translate your mission and vision into tangible goals. For instance, if your mission statement is to make every client feel like your most important client, think about the following:

• How specifically will you implement this?
• Do you want to grow your business?
• Is this growth measured by gross revenue, profit, personnel, or physical office space?
• How much growth do you aim for annually?
• What specific targets will you strive to hit annually in the next few years?

Setting Business Goals & Objectives: 4 Considerations ( Harvard Business School , Oct. 31, 2023)

What are Business Goals? Definition, How To Set Business Goals and Examples ( Indeed , Jul. 31, 2023)

Establishing a Format

Most businesses either follow a traditional business plan format or a lean startup plan.

Traditional Business Plan

A traditional business plan is detailed and comprehensive. Writing this business plan takes more time. A traditional business plan typically contains the following elements:

• Executive Summary
• Company description
• Market analysis
• Organization and management
• Service or product line
• Marketing and sales
• Funding request
• Financial projections

Lean Startup Plan

A lean startup plan requires high-level focus but is easier to write, with an emphasis on key elements. A lean startup plan typically contains the following elements:

• Key partnerships
• Key activities
• Key resources
• Value proposition
• Customer relationships
• Customer segments
• Cost structure
• Revenue stream

Creating a Marketing Plan

You may wish to create a marketing plan as either a section of your business plan or as an addendum. The Marketing Mix concerns product , price , place and promotion .

• What is your product?
• How does your price distinguish you from your competitors—is it industry average, upper quartile, or lower quartile?
• How does your pricing strategy benefit your clients?
• How and where will you promote your services?
• What types of promotions will you advertise?
• Will you ask clients for referrals or use coupons?
• Which channels will you use to place your marketing message?

Your Guide to Creating a Small Business Marketing Plan ( Business.com , Feb. 2, 2024)

10 Questions You Need to Answer to Create a Powerful Marketing Plan ( The Balance , Jan. 16, 2020)

Developing a Marketing Plan ( Federal Deposit Insurance Corporation )

Forming a Team

Ensuring the cooperation of all colleagues, supervisors, and supervisees involved in your plan is another important element to consider. Some questions to consider are:

• Is your business plan’s success contingent upon the cooperation of your colleagues?
• If so, what specifically do you need them to do?
• How will you evaluate their participation?
• Are they on-board with the role you have assigned them?
• How will you get “buy in” from these individuals?

How to Build a Real Estate Team + 7 Critical Mistakes to Avoid ( The Close , May 17, 2023)

Don’t Start a Real Estate Team Without Asking Yourself These 8 Questions ( Homelight , Jan. 21, 2020)

Implementing a Business Plan and Reviewing Regularly

Implementation and follow-up are frequently overlooked aspects to the business plan, yet vital to the success of the plan. Set dates (annually, semi-annually, quarterly, or monthly) to review your business plans goals. Consider the following while reviewing:

• Are you on track?
• Are the goals reasonable to achieve, impossible, or too easy?
• How do you measure success—is it by revenue, profit, or number of transactions?

And lastly, think about overall goals.

• How do you plan to implement your business plan’s goals?
• When will you review and refine your business plan goals?
• What process will you use to review your goals?
• What types of quantitative and qualitative data will you collect and use to measure your success?

These items are only a few sections of a business plan. Depending on your business, you may want to include additional sections in your plan such as a:

• Cover letter stating the reasoning behind developing a business plan
• Non-disclosure statement
• Table of contents

How To Write a Business Proposal Letter (With Examples) ( Indeed , Jul. 18, 2023)

How To Implement Your Business Plan Objectives ( The Balance , Aug. 19, 2022)

The Bottom Line

Creating a business plan may seem daunting, but by understanding your business and market fully, you can create a plan that generates success (however you choose to define it).

Real Estate Business Plans – Samples, Instructional Guides, and Templates

9 Steps to Writing a Real Estate Business Plan + Templates ( The Close , Apr. 3, 2024)

How to Write a Real Estate Business Plan (+Free Template) ( Fit Small Business , Jun. 30, 2023)

The Ultimate Guide to Creating a Real Estate Business Plan + Free Template ( Placester )

Write Your Business Plan ( U.S. Small Business Administration )

General Business Plans – Samples, Instructional Guides, and Templates

Business Plan Template for a Startup Business ( SCORE , Apr. 23, 2024)

Guide to Creating a Business Plan with Template (Business News Daily, Mar. 28, 2024)

Nine Lessons These Entrepreneurs Wish They Knew Before Writing Their First Business Plans ( Forbes , Jul. 25, 2021)

How to Write a Business Plan 101 ( Entrepreneur , Feb. 22, 2021)

Books, eBooks & Other Resources

Ebooks & other resources.

The following eBooks and digital audiobooks are available to NAR members:

The Straightforward Business Plan (eBook)

Business Plan Checklist (eBook)

The SWOT Analysis (eBook)

The Business Plan Workbook (eBook)

Start-Up! A Beginner's Guide to Planning a 21st Century Business (eBook)

Complete Book of Business Plans (eBook)

How to Write a Business Plan (eBook)

The Easy Step by Step Guide to Writing a Business Plan and Making it Work (eBook)

Business Planning: 25 Keys to a Sound Business Plan (Audiobook)

Your First Business Plan, 5 th Edition (eBook)

Anatomy of a Business Plan (eBook)

Writing a Business Plan and Making it Work (Audiobook)

The Social Network Business Plan (eBook)

Books, Videos, Research Reports & More

As a member benefit, the following resources and more are available for loan through the NAR Library. Items will be mailed directly to you or made available for pickup at the REALTOR® Building in Chicago.

Writing an Effective Business Plan (Deloitte and Touche, 1999) HD 1375 D37w

Have an idea for a real estate topic? Send us your suggestions .

The inclusion of links on this page does not imply endorsement by the National Association of REALTORS®. NAR makes no representations about whether the content of any external sites which may be linked in this page complies with state or federal laws or regulations or with applicable NAR policies. These links are provided for your convenience only and you rely on them at your own risk.

Real Estate | How To

How to Write a Real Estate Business Plan (+ Free Template)

Published June 30, 2023

Published Jun 30, 2023

REVIEWED BY: Gina Baker

WRITTEN BY: Jealie Dacanay

This article is part of a larger series on How to Become a Real Estate Agent .

• 1 Write Your Mission Statement
• 2 Conduct a SWOT Analysis
• 3 Set Specific & Measurable Goals
• 4 Plan Your Marketing Strategies & Tactics
• 5 Create a Lead Generation & Nurturing Strategy
• 6 Calculate Your Income Goal
• 7 Set Times to Revisit Your Business Plan
• 8 Why Agents Need a Real Estate Business Plan
• 9 Real Estate Business Plan Examples & Templates
• 10 Bottom Line
• 11 Frequently Asked Questions (FAQs)

A real estate business plan lays the groundwork and provides direction on income targets, marketing tactics, goal setting, lead generation, and an overview of your industry’s competition. It describes your company’s mission statement in detail and assesses your SWOT (strengths, weaknesses, opportunities, and threats) as an organization. Business plans should include measurable goals and financial projections that you can review periodically throughout the year to ensure you meet your goals.

Continue reading to see real estate business plan examples and discover how to write a real estate business plan. Start by making your own by downloading and using the free real estate business plan template we’ve provided below.

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Real Estate Business Plan Template

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💡Quick tip:

Market Leader provides a comprehensive paid inbound lead, automated marketing, and CRM solution to help agents acquire, engage, and nurture real estate leads.

Furthermore, Market Leader offers and guarantees you a number of exclusive seller and buyer leads in your target niche at a monthly rate.

1. Write Your Mission Statement

Every real estate agent’s business plan should begin with a mission statement, identifying your values and why your business exists. Your mission statement serves as the guide to achieving your ultimate business objective. When you create a solid clear mission statement, all other items identified in your realtor business plan should be aimed at fulfilling this statement.

Compass’ mission statement: “Our mission is to help everyone find their place in the world.” (Source: Compass )

Your mission statement should identify your target audience, what product or service you provide, and what makes your business distinct. As seen in the example above, a powerful mission statement should be short and concise but sums up a business objective.

Let’s take Compass’ mission statement above as an example: “Our mission is to help everyone find their place in the world.” The statement identifies what the company offers, for what reasons, and who it benefits.

2. Conduct a SWOT Analysis

SWOT is an acronym that stands for a business’ strengths, weaknesses, opportunities, and threats. The primary objective of these four elements is to assess a business by evaluating internal and external factors that can drive decision-making and help you make more money . Conducting a SWOT analysis as you develop your business plan for real estate uncovers opportunities to differentiate yourself from the massive competition currently on the market.

Strengths & Weaknesses

Strengths and weaknesses are internal parts of your organization. Strengths identify what product or services you provide better than others, your access to resources, and items that benefit your customers. Weaknesses are items that need improvement, lack of resources, or what your competition does better. These are items within your control to change because you can convert a weakness into a strength.

See the example below if “Agent X” was doing their SWOT analysis:

Opportunities & Threats

External factors drive opportunities and threats and are areas you can take advantage of to benefit your business. Examples of opportunities can be shifts in the current marketplace, emerging trends you can capitalize on, features that competitors lack, or even changes with your competitors. Threats, on the other hand, are anything that can negatively impact your business. You don’t have control over changing the opportunities or threats, but you can develop a practice to anticipate and protect your business against the threats.

The opportunities and threats for “Agent X” would be:

When you complete your SWOT analysis, use it as a guide when creating strategies to meet your business objectives. To gain the most benefit from creating a SWOT analysis, make sure you are being realistic about your business and evaluating it in its present state. You don’t want to be unrealistic by listing strengths or opportunities that don’t exist yet, and you want to allocate time and money to the most impactful solution to your business issues.

If “Agent X” completed the above SWOT analysis, a few strategies they could derive would be:

• Incentivize agents to keep them at the brokerage for longer
• Implement a technology-based key machine to reduce lost keys and keep the team accountable
• Find a competitive advantage against competing brokerages and use that in marketing messages

Zillow agent finder (Source: Zillow )

To help agents locate other brokerages operating in your preferred market, agents can use Zillow’s agent finder page as a research tool to see which agents or brokerages are operating in a specific area. You can find an agent by location, name, specialty, and language. Once you click on a Zillow profile , you can read their reviews, see their team members, contact and website information, and property listings. Take a deep dive into your competitor profiles and can use the information to implement strategies within your own business.

Visit Zillow

Read how our experts feel about this real estate lead generation company in our Zillow Premier Agent review .

3. Set Specific & Measurable Goals

You’re ready to set some business goals after clearly defining your mission statement and SWOT analysis. Goals can help set the tone to increase your performance and drive your business in the right direction. Your goals should have a definitive way to show progress, which can be a prime motivator to keep you on track to achieving them.

Each goal should follow a pattern to identify set criteria. This will ensure that your daily efforts are performed to meet business objectives within a set period. A way to do this is by using SMART goals:

Examples of SMART goals for agents or brokerages:

• Increase closed transactions by 20% to a total of 150 deals within the next year
• I will ask all closed clients for a referral and review within 30 days of closing the deal

Goals can be split into short-term and long-term goals. Short-term goal lengths vary between days and weeks but do not exceed six months. Short-term goals can also be worked on simultaneously with long-term goals. Long-term goals can take up to six months or more to complete and require careful planning and perseverance. A mix of short-term and long-term goals will help you maintain motivation.

All goals are equally important; however, success will stem from how you prioritize each one. Slowly add on additional goals as you have the capacity and feel comfortable with the current progress of your current set of goals. Without identifying your business goals, you’ll leave your results up to luck to attain your business objectives.

4. Plan Your Marketing Strategies & Tactics

Developing marketing strategies and tactics and implementing them help you identify and locate your current value proposition in the real estate industry, along with specific timelines for execution. In addition to determining your overall business objectives and goals, your marketing strategy and plan should include the following:

• Pinpoint general marketing goals
• Estimate projected marketing budget
• Know your geographic farm area data and identify your target niche audience
• Analyze market competition
• Identify your unique selling proposition
• Establish a timeline and set your plan in motion
• Track your progress and readjust as needed

While a marketing strategy identifies the overall marketing goals of your business, developing marketing tactics will help you achieve those individual goals. They can include referral business tactics, retention efforts, and ways to acquire new customers. For example, you can offer incentives to anyone who refers your business, or you can implement new email drip campaigns to help increase lead conversion rates.

These tactics should have set key performance indicators (KPIs) to help you evaluate your performance. For instance, a KPI you can set for your business could be that referral business should exceed 20% of your lead generation sources.

If you’re unsure how to put together your marketing plan, check out our article Real Estate Marketing Plan Template & Strategy Guide and download the free template to get started.

Postcard campaign example (Source: ProspectsPLUS! )

If direct mail is part of your promotion strategy, services like ProspectsPLUS! can help easily create and distribute mailers to a targeted area. It also has options for postcards , brochures, newsletters , flyers, and folders. You can also send mailers to prospective clients by geographic or demographic farm areas through its campaigns. Check out its templates and mailing options today.

Visit ProspectsPLUS!

Read how our experts feel about this real estate direct mail service in our ProspectsPLUS! review .

5. Create a Lead Generation & Nurturing Strategy

Having a successful lead generation strategy will help you maintain business growth. Lead generation can be performed organically and through paid advertisements to attract and convert prospective clients. In addition to generating leads, agents should have systems to manage, nurture, and re-engage with contacts to maximize opportunities.

Generating leads through a multipronged approach is the best way to maintain lead flow. Use organic strategies like hosting an open house, reaching out to your sphere of influence, and attending networking events. Employ paid generation strategies, such as purchasing leads from a lead generation company or setting up a website to funnel potential clients. Your marketing strategies will directly correlate with your lead generation strategies.

Every lead is an opportunity, even if they don’t immediately convert into a deal. Effectively nurturing leads can make sure no opportunity falls through the cracks. Agents can nurture leads by continuously engaging and developing relationships with prospective leads . It’s important to provide prospective clients with a constant flow of essential and relevant information, depending on where they are in the real estate buying or selling process.

Here are the top lead generation companies for real estate agents and brokers:

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6. Calculate Your Income Goal

Your income goal is one of the most critical items to be included in your business plan. While this may be more difficult for new agents who are still learning the business, it’s still necessary to estimate the amount of money you will earn for the year. Work with an experienced agent or mentor to help you estimate your monetary goals. For professional agents, review your previous years to judge your income goals for the upcoming year.

To calculate your income goal and the amount of work you’ll need to complete to get to that goal, you’ll need to have some basic number estimates:

• Net income: The amount of money you will put in your pocket after commission splits with your real estate brokerage.
• Fee split with brokerage: This is the agreed-upon commission split you have with your brokerage for each completed transaction. For example, if you have a 70/30 split with your brokerage, you will collect 70% of the commission, and your brokerage will receive a 30% commission for each deal.
• Estimate of completed deals per year: You also want to estimate the number of deals you intend to complete yearly. Remember that some months will be busier than others, so make sure to account for holidays, weather, and your schedule.

Real Estate Yearly Goal Calculator

By figuring out these numbers, you can give yourself a realistic number for your income goal. Compute the gross income commission (GCI) or amount of money you must make before the commission splits and the average profit per deal and month you’ll need to reach your goal.

For a more detailed breakdown of your yearly goal, download and use our yearly goal calculator. Input your information into the highlighted yellow boxes, and the spreadsheet will automatically calculate the GCI, total deal count, and gross income you’ll have to earn each month to reach your goal. Adjust the average gross commission per deal and brokerage split as necessary.

FitSmallBusiness Year Goal Calculator

For additional information on real estate agent salaries, review our article Real Estate Agent Salary: How Much Do Real Estate Agents Make?

7. Set Times to Revisit Your Business Plan

Business plans are only effective if you use them. A business plan is a roadmap for your business, and you’ll need to revisit it often to ensure you’re staying on track. It should be a constant resource to guide you through meeting your goals and business objectives, but it’s not necessarily set in stone if you need to make any changes.

Agents should revisit their business plans monthly to measure progress and make any changes to stay the course. If you find that you’re missing the times set for your goals, then you should continue to revisit your business plan regularly. Changing the business plan itself should occur annually once you can have a complete picture of your yearly performance. Evaluating the business plan can help you discover new strategies and ensure you have the appropriate resources for the upcoming year.

Overall status of sales activities in the dashboard (Source: Pipedrive )

Sales software like Pipedrive can help you track your overall business performance when revisiting your business plan. It presents company sales data in easy-to-visualize dashboards that track your business performance and contains forecasting tools to project future revenue. It can maintain company and team goals with progress tracking to keep goals top of mind.

Visit Pipedrive

Read how our experts feel about this real estate customer relationship manager (CRM) system in our Pipedrive review .

Why Agents Need a Real Estate Business Plan

A real estate business plan keeps you up to date on market developments and one step ahead of your competitors. It also enables you to test lead-generating tactics and create new marketing campaigns while keeping track of results over time. A solid business plan for a real estate agent presents the following:

• Where you are at the moment
• Where you would like to be
• How you’re going to get there
• How to evaluate and measure your performance
• When and when to correct the course

Real Estate Business Plan Examples & Templates

Real estate agents and brokerages don’t have to build their business plans from scratch, as many resources provide different examples. Business plan templates can also have different objectives. Some are used to secure financing or help you focus on lead generation, while others are single-page plans meant to get you started.

Here are five real estate business plan examples you can use to create yours:

Lead Generation & Income Plan

Market Leader business plan example (Source: Market Leader )

This business plan is from Market Leader, a third-party lead generation platform. It specializes in lead generation, marketing, and converting leads into customers with an attractive IDX (Internet Data Exchange) website and robust automation tools. Agents can also participate in purchasing leads through their lead products to receive a guaranteed number of leads per month.

A Single-page Business Plan

Business plan for real estate (Source: PngFind )

Agents who are new to writing a business plan can start small. Business plans do not have to be multipage to be effective. This single-page business plan helps identify a single goal followed by three areas to focus on and five objectives for each focus area. As real estate agents begin to feel comfortable with goal setting and completion, they can continue to add to this single-page business plan with duplicate pages, identifying additional goals.

Business Plan for Real Estate Brokers

Real estate broker business plan (Source: AgentEDU )

This robust real estate broker business plan is designed to address organization and management goals. It contains pages identifying personnel information like title, job description, and salary. The business plan also encourages the broker to identify operational goals for future personnel changes. It’s best suited for a broker with a larger team to help drive operational change.

Business Plan With Detailed Financials

Example of real estate agent business plan template (Source: FinModelsLab )

This multipage business plan contains eye-catching graphics and detailed company financial information for real estate agents and brokers seeking funding from outside investors. One of the last sections of the business plan is a financial planning section geared toward showing how viable your business is through your provided income statements, cash flow, and balance sheet reports.

Real Estate Developers’ Business Plan

Realtor business plan template sample (Source: Upmetrics )

Upmetrics’ real estate business plan templates are easy to edit and share and contain professional cover pages to help agents convert their business ideas into actionable goals. The business plans from Upmetrics are geared toward agents looking to transition into real estate development. This plan includes vital sections important for a developer to analyze, such as building location, demand for housing, and pricing.

Real estate CRM (Source: Market Leader )

Market Leader’s business plan is centered around driving more business through lead generation. It helps agents understand their lead sources, average sales price, and how much commission was earned in a given year. It also allows agents to set income and transactional goals for the following year.

Visit Market Leader

Bottom Line

Whether you are a new real estate agent or looking to grow your brokerage, writing a real estate business plan template will help you define the steps needed to build a successful business . It serves as a guided roadmap to help you achieve your business goals, identify areas of improvement, and provide guidance in all aspects of your business, from marketing, operations, and finance to your products and services. Business plans can help determine if your business is viable and worth the financial investment.

Frequently Asked Questions (FAQs)

What is a real estate business plan.

A real estate business plan is a document that presents an outline of your organizational goals. A business plan lays out future company goals and structured procedures to achieve them. Business plans commonly contain plans for one to five years at a time, though they can differ from investor to investor.

A real estate business plan will put you in a position to succeed while also assisting you in avoiding potential pitfalls. It serves as a guide to follow when things go as expected and when they diverge from the initial plan of action. Also, a real estate business plan will ensure that investors know the steps they need to take to succeed.

How do I jump-start my real estate business?

It is important to note that starting a real estate business is not a simple task. Before launching a firm in any field, entrepreneurs should spend numerous hours researching and developing a solid business plan. As you start your real estate business, use the following tips as guidance:

• Think about your professional goals
• Conduct extensive research
• Organize your finances
• Create a business plan
• Establish an LLC
• Make a marketing plan
• Create a website
• Start campaigns
• Keep track of leads
• Develop a network of connections

How can I grow my real estate business?

You can use multiple strategies and ways to grow your real estate business. They include:

• Assess your current situation
• Invest in your professional growth
• Establish strategic alliances
• Take advantage of omnichannel marketing
• Start blogging
• Create consistent social media profiles and campaigns
• Improve your website
• Consider working with a marketing company
• Optimize your signs and direct mail

About the Author

Find Jealie On LinkedIn

Jealie Dacanay

Jealie is a staff writer expert focusing on real estate education, lead generation, marketing, and investing. She has always seen writing as an opportunity to apply her knowledge and express her ideas. Over the years and through her internship at a real estate developer in the Philippines, Camella, she developed and discovered essential skills for producing high-quality online content.

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Success From the Start: Developing a Powerful Realtor Business Plan

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The Ultimate Guide for Real Estate Agents to Create a Realtor Business Plan Template

Antonio Del Cueto, CPA

May 14, 2024

"By failing to prepare, you are preparing to fail," Benjamin Franklin's famous words ring especially true in the high-stakes world of real estate. This timeless piece of wisdom underscores the undeniable importance of a structured approach to any ambitious endeavor, particularly in crafting a realtor business plan .

In the competitive real estate market, success often hinges not just on what you do, but on how well you plan your actions. In this blog, you will unleash the essentials of creating a powerful realtor business plan that aligns your ambitions with actionable strategies, setting you on a path to success.

Further reading: Charting Your Course: Crafting a Winning Real Estate Business Plan

Why You Need a Real Estate Business Plan

Standing out isn't just an option. It's a necessity. A well-crafted business plan isn't merely paperwork. It’s your guide to discovering a successful niche in this competitive field.

Are you a broker or an agent? A solid plan serves as your roadmap, helping you navigate challenges and seize opportunities efficiently. It keeps you focused, ensuring every decision and marketing effort propels you towards your goals.

Set Your Real Estate Business Goals

Setting clear, achievable goals is fundamental in shaping your real estate career. It’s about knowing your destination before you start the journey. For a new real estate business, common goals might include:

• achieving a certain income goal through average commission per sale
• expanding client reach through strategic lead generation
• enhancing brand visibility with open houses and robust social media content.

These targets not only keep you on track but also ensure that you’re aligned with your clients’ needs and local market demands. As you create your plan, remember to consider listing expenses and other costs that could impact your financial milestones.

Realtor Business Plan Template

Using a real estate business plan template can make this process more efficient. A good template will guide you in structuring your plan to cover all necessary aspects, such as developing a client avatar, managing listing photos, and crafting strategies for buyers and sellers.

Key components of the template should help you identify what makes the biggest impact, such as referral systems, new listing strategies, and relationship management . To ensure you’re on track, don’t forget to include a vision statement and a review schedule.

Crafting Your Real Estate Agent Business Plan

Creating a robust real estate agent business plan is vital. It's time to create a comprehensive blueprint that not only guides you through daily tasks but also helps you grow into a successful real estate agent.

Your plan should encompass various strategies to help expand your reach and meet financial goals. You'll need to include a detailed marketing plan , identify key price points, and outline anticipated expenses to consider.

Calculate Your Budget and Resources

Start by estimating all startup costs, including office space, licensing, and technology. These are key investments that lay the foundation for your business. Allocate your budget strategically to areas that drive client acquisition, like marketing, ensuring you prioritize effectively.

Develop realistic financial projections to guide your business, helping you understand when you’re on track or need to pivot. This process is vital for any real estate broker aiming to reach financial goals and expand their business. Don’t panic and take the time to review your finances regularly.

Leveraging Local Demographics for Niche Targeting in Your Real Estate Business Plan

Identifying niche markets through demographic analysis.

Identify your niche market through thorough demographic analysis. Gather and analyze local demographic data to spot emerging lifestyle and consumer trends.

This insight allows you to match property types with the specific needs of different demographics, pinpointing untapped or growing niches. This helps create a focused and effective brokerage that caters to specific client segments.

Customizing Marketing Strategies to Reach Your Ideal Client

In crafting marketing strategies for your real estate brokerage, develop messages that resonate with your target demographic. Select appropriate marketing channels that ensure maximum reach and engagement with your ideal clients.

Engaging actively with the community and leveraging client testimonials are powerful ways to build trust and a strong reputation. This tailored approach will enhance your brokerage's visibility and appeal within your chosen niche.

Enhancing Services to Meet Demographic-Specific Needs

To better serve your target market in real estate, offer specialized services tailored to their specific needs. Build strategic partnerships that enhance your service offerings and create added value for your clients. Continuously update your knowledge and certifications to stay relevant and informed.

Adjust your business strategies based on market conditions and client feedback to ensure you’re always aligned with their needs. This approach helps you grow your real estate business and positions you as a trusted advisor who can make it happen. Remember to review your strategies periodically.

Integrating Technology and Real Estate

Virtual reality (vr) home tours.

VR home tours significantly boost client engagement by allowing potential buyers to explore properties remotely. This saves time and reduces business expenses, making it an integral part of creating a real estate business plan. By integrating VR tours, you successfully transform how you showcase homes.

Drone Photography

Drone photography showcases unique property features, elevating listing attractiveness and potentially boosting conversion rates. Investing time to identify the best tools is essential for any agent looking to improve their sales strategy. This method helps you craft listings that stand out in a competitive market.

AI-Driven CRM Systems

AI-driven CRM systems are revolutionizing how many agents manage their relationships and lead generation. These systems automate routine tasks, allowing you to focus more on personalized service and less on admin. They help you craft a strategy that integrates personal and business goals, keeping you flexible and informed about your progress.

Financial Strategies Beyond the Basics

Leveraging real estate investment trusts (reits).

REITs provide a straightforward path for investing in real estate through collective funds. These funds own and manage properties, returning profits as dividends. By understanding REITs, you can enjoy benefits like steady income and capital appreciation without the complexities of direct property management. These benefits make REITs an attractive option for diversifying your portfolio and gaining exposure to different real estate sectors.

Integrating REITs into your financial plan can create a roadmap to success. Invest the time to identify which REITs best align with your financial goals and track your progress annually. REITs offer flexibility and require less capital than buying property directly, making them a practical choice for many investors.

Sustainable Practices in Real Estate

Understanding the value of sustainable real estate.

Sustainable real estate is not just a trend. It's a smart investment. These properties offer long-term benefits such as reduced energy costs and maintenance savings. They often have regulatory advantages, including tax incentives and easier compliance with building codes, increasing their value. As environmental standards tighten, these green features significantly boost property values, making them highly desirable in the market.

Marketing Green Homes Effectively

In marketing green homes, it's vital to highlight key sustainable features clearly. Create a plan that uses educational marketing to explain the benefits and potential savings associated with features like solar panels and energy-efficient appliances.

Showcasing relevant certifications can also enhance credibility. As you learn strategies on effectively promoting green properties, your marketing efforts can lead to generating more leads—so stay flexible and adapt your strategies as needed.

Further reading: Learn How Real Estate Accounting Services Streamline Property Management

Building a brand in real estate, setting goals for your brand.

First, take the time to identify clear objectives for your real estate brand. Calculate expected returns to understand the impact of your strategies and conduct a thorough year-end review to know if you’re meeting your targets. This step is fundamental in crafting a guide to creating a successful business plan for real estate. It helps pinpoint areas you need to focus on to enhance your brand's growth.

Effective Storytelling in Marketing

Effective storytelling is key to engaging your audience. Craft relatable stories that resonate, incorporating client testimonials to build credibility. Always ensure your stories reflect the true essence of your brand. Certainly, don’t exaggerate or mislead.

Content Marketing Strategies in Real Estate

Elevate your content marketing by hosting informative podcasts and producing engaging videos. These lead-generating tools help establish you as a knowledgeable source in the real estate market.

Utilize visual platforms to showcase the unique aspects of properties you’re marketing. As a relationship manager, it's important to continuously adapt and innovate your strategies to stay relevant and appealing to your audience.

Key Takeaways

• Download the 2024 business planning guide : Make sure to access the latest resources tailored to your industry for informed decision-making and strategic planning.
• Year in real estate : Reflect on the trends, challenges, and successes of the past year to inform your business strategy for the upcoming months.
• Word of warning : Be cautious of potential pitfalls or market shifts and integrate contingency plans into your business strategy to mitigate risks.
• Connect with people : Network with a diverse group of professionals, including clients, fellow realtors, lenders, and industry experts, to expand your knowledge and opportunities.
• Know in the comments : Engage with your online community by encouraging feedback, questions, and discussions to build relationships and foster trust in your expertise.

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Blog Real Estate Best Practices 12 Easy Steps to Creating a Perfect Real Estate Business Plan (2024 Updated!)

12 Easy Steps to Creating a Perfect Real Estate Business Plan (2024 Updated!)

To be truly successful in the world of business, you must create a solid business plan. This is the case no matter what industry you are in, and that includes real estate.

The business plan you work out must be unique. There is no cookie cutter approach. You must keep your brand image and goals in mind when creating the plan that’s perfect for you.

However, there are a few steps you can take to ensure your plan is well executed. This article will review those steps to ensure you plan is as successful as possible.

Why Create a Real Estate Business Plan?

A real estate business plan offers several benefits including the following:

• It shows you where your business is at and outlines areas where you can make improvements.
• It allows you to set goals and track progress.
• It can be used to help secure funding. Most potential investors will want to see a copy of your business plan before moving forward.
• It can be a selling point for attracting top talent.
• It provides an outline that will help you manage day to day tasks in an organized fashion.
• It can help you track your marketing efforts.
• It can help you attract clients.
• It will keep you more organized in reaching your long-term goals.

12 Steps to Create The Best Real Estate Business Plan

1. determine your business model.

There are a few ways to go when embarking on your real estate journey. You may decide you want to start or join a real estate team. Or you may decide you want to start or join a brokerage. You’ll want to decide if you need a sole proprietorship or an LLC is in your best interest. You may establish a plan early on in your career, or you may decide to change directions and create a new plan in the middle of your career.

While these are all very different paths to take, there are common elements that will need to be focused on in the plan creation process. They will be outlined in the following sections.

2. Identify Who You Are

Determining your brand identity will help you create marketing materials that reflect your image. Are you a friendly ‘people person’? Or is your main goal finding clients the best investment for their money?

Your strategies will change slightly depending on your business model. If you own or work in a team setting , you must define the role of each team member and their part in helping you reach your goals.

If you own a brokerage, your real estate business plan will help you determine what type of agents you want working for you. If you work on your own , it will all come down to your unique vision.

When putting it down on paper, your identity will consist of:

• Your Mission Statement: Your reason for being in real estate
• Your Executive Summary: One or two sentences that summarize what you do

3. Analyze Your Target Real Estate Market

Once you determine who you are as an agent, you will have a better idea of who you are marketing to. You may be targeting business owners, investors, families, luxury clients and so on. It’s also likely you will be working within a specific area.

After identifying your target audience, you need to figure out how your target market is doing. What are home prices like? How is inventory looking? Is it a buyer’s or seller’s market? And what are future predictions?

You will be able to glean this information by looking carefully at the MLS and staying on top of trends. Online and offline real estate resources will also provide some insight.

In general, you will want to stay on top of:

• General Trends including how long homes are staying on the market on average, commission rates, sale prices, etc.
• Market Opportunities based on supply and demand
• Market Saturations based on inventory and agent services

4. Analyze Your Competition

We all know the saying, ‘keep your friends close and your enemies closer’. Stay on top of what other agents are doing by subscribing to their newsletters and following their social media pages. While you won’t want to copy their strategies outright, they may just inspire you to create a marketing plan that gives you a competitive edge.

You should also look out for underserved niches and competitive saturation.

When it comes to underserved niches, there may be plenty of agents in your area specializing in family residential properties. But how many are serving the commercial sector? Or the luxury sector?

If the city sections in your area are blowing up, consider looking into properties in a nearby suburb to avoid competitive saturation.

5. Decide What Services You Will Provide

Most real estate agents provide the expected services such as conducting open houses, finding homes for buyers, determining pricing, negotiations, and keeping transactions organized in general.

But you can offer additional services that set your business apart. For example, you may provide:

• Staging: Staging involves setting up the home, so it looks more aesthetically appealing. Once upon a time, staging was offered as an addition service. But today, many agents are rolling it into their agent fees. The agent may stage the home themselves, or they may bring in a specialized team for staging.
• Professional Virtual Tours: Today, virtual real estate tours are the way to go. They allow clients to get the experience of being in the home without having to leave their home. If you are not offering this service, it’s time to get onboard.
• Neighborhood Analysis: Most agents provide clients with an overview of what a neighborhood has to offer. But if you want to go that extra mile, you can provide an in-depth report that includes crime rate, types of properties, demographics, and more.
• Relevant Discounts: Agents can offer clients relevant discounts in terms of handyman services, inspections, appraisals and more.

6. Carve Out a Niche

It’s important to carve out a niche in terms of what type of property you want to sell and who your target audience is. But you can get even more ‘niche-y’ by specializing in certain types of properties such as condos and townhouses, catering to first time buyers and so on.

It may seem like carving out a niche is limiting, but it will make people come to you first when they require expertise in your field. When choosing a niche, base it on what you are most skilled at and where you see an opportunity to grow professionally.

7. Create a Marketing Plan

The first step of your marketing plan will involve identifying your target audience and determining the best way to reach them. For example, if you are focused on first time buyers, you will be targeting a millennial crowd. In addition to emphasizing money saving goals, you may also want to advertise yourself as an agent that is environmentally friendly and gives back.

A luxury crowd may have similar concerns, but their main interests will be in finding high end properties that offer the utmost in amenities.

You must also consider the best way to reach your target audience. What social media platforms are they likely to be on? Do you think they will respond well to cold calls , door knockings , and mailings? Or is it best to keep things digital?

You must also consider race, color, origin, sexual orientations, and disabilities. Create marketing materials that are appealing and will not discriminate in any way.

8. Conduct a SWOT Analysis

SWOT stands for Strengths, Weaknesses, Opportunities, and Threats.

In terms of strengths and weaknesses, you must consider what you are best at and what could use improving. For example, you may find that you have superior digital skills but that you’re not so great with cold calling. If this is the case, you should focus on digital and avoid cold calls.

However, you may also consider improving weak spots. For example, if it was the other way around and digital was a weakness, you should consider building up your digital skills. This will give you a competitive advantage in today’s world of real estate.

It’s also important to be aware of opportunities and know when to pounce. This will help a lot with lead generation. For example, FSBO, near pre-foreclosure, and divorces are all ideal situations for an agent to come knocking. You may also think of opportunities in terms of underserved areas and niches in your community.

Threats can come in the form of competition and/or changes in the market. There is usually no way to keep these threats from happening, but you can take steps to be prepared when they occur. This will ensure you are in the best shape possible for taking them on and minimizing potential damage.

9. Focus on Your Specific Goals

• Making a certain amount of money in a given time
• Completing a certain number of transactions in a given time
• Attaining a certain number of new clients in a given time
• Reducing lead time
• Growing your company by hiring new agents and employees or opening new locations
• Determining a better work/life balance

When you set up your goals, it’s important to make them measurable and attainable. If your goals aren’t attainable, you will end up wasting time working towards goals you will never reach. You will also become frustrated by your lack of progress.

Measuring goals can be challenging. In today’s digital world, reports and analysis are provided so you can determine your ROI and figure out what’s working and what isn’t. If you are outside of the digital realm, it may be more difficult to measure your progress, but you should have some idea of how well you are doing.

10. Keep Track of Your Finances

No matter how passionate you are about your business, it won’t be a success unless you are making money. You must keep track of how much you are spending and how much you are earning. Your net profits should always be positive.

For best results, implement an online system like QuickBooks. Online bookkeeping systems will provide reports so you can see where most of your money is being spent and your main sources of income. This will help you determine what’s bringing in the most ROI, what’s generating income, and what’s not.

You may also consider hiring an accountant and/or a financial consult. Your financial team will ensure you are making smart moves at tax time and when investing in tools, software, and other business ventures.

11. Review Your Success Ratios

Your success will also be contingent on customer satisfaction. Are your customers pleased with your services? Are they referring friends and family?

If your success ratios are looking good but your finances aren’t matching up, you may be overspending on certain aspects of your business. Look at your records to see where the bulk of your money is going. Cut back if necessary.

12. Revisit Your Real Estate Business Plan Regularly

Your business plan is not set in stone. It’s a good idea to check it on a regular basis so you can revise it in accordance with your current needs. You may also want to create a new business plan if you decide to change up your business model.

A real estate business plan is a valuable tool for agents. It will keep you on course in attaining your goals. This template will help you devise a plan that is best suited to your professional needs. We wish you the best of luck in moving your company forward.

You’re a successful real estate agent, but you’d like to step to the next level. To do that, you want to create a better business plan for next year. So, how do you start? By filling out that form your manager gave you, asking for your goals for next year? Or, maybe you’re attending those trainings where seminar gurus give you 30 things to do next year. That will put you in a quandary because you don’t know how to choose! Please don’t leap to either one. Before you commit, take a look back at your last year (In the strategic planning process, it’s called the ‘ business review’.) Using the same thought process successful businesses use to create effective business plans will give you clarity.

Time To Scope Your Business Plan: Small Adjustments Pay Big Dividends

You and your business are unique.

Don’t copy someone else’s plan or commit to pie in the sky numbers until you know your three business indicators here. Armed with that information, you can pick and choose your actions and goals wisely, because you know they will work for you.

Building Your Business Best: From working with agents in my business planning courses and systems, I’ve observed that many agents don’t build a business plan around their best source of business: ‘sold’ customers and clients. Marketing surveys show that it costs six to nine times as much to get a new customer as to keep an old one. So, if you spend more money on your best source, and less on your other sources, you’ll optimize your investment.

3. How ‘delighted’ are your clients? Most so-called ‘business plans’ in real estate merely are goal-setting grids. Focusing only on the end results suggests that the ends justify the means. However, the consumer sure doesn’t think so! These goal setting grids alone lead agents to miss the point of the decade: Top-flight customer service begets more business. That is, it’s not just what you do, but how you do it. What level of service are you providing? Is it just good enough to get through the transaction? Or, is it so great that your clients are thoroughly delighted ? (Delighted consumers refer business to you–less cost and more effort equals big pay-offs, right?)

Build Delight into your Business Plan

Don’t Worry About the Tactics

If you’ve been gathering those dozens of tactics seminar gurus have suggested you MUST do, your head is probably spinning. That’s not the way to go about creating an effective business plan. Instead, take time to use the strategic planning process, which includes your business review. Commit one hour out of your day now to assess the three areas here and plan adjustments. The bonus: With your answers, you can pick from that myriad of action plans you’ve gathered and choose the ones that support your major goals. Now you have the ‘why’ for your plan, and you’ll be inspired to create and implement your unique business plan.

About the Author

Chris Heller brings 27 years of experience in real estate. Chris serves on the AgentAdvice Editorial Board and is the Chief Real Estate Officer at OJO Labs. Chris brings deep expertise having held influential industry positions including CEO of mellohome and former CEO of Keller Williams Realty International.

Last Updated: 12/29/2023

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Ultimate Guide: 11 Points to Writing a Real Estate Business Plan

Failing to plan is planning to fail. Your business plan is the GPS for success. Instead of wandering, push towards your goals and objectives with clear direction. Developing a real estate business plan is critical to forming a healthy and sustainable business. 

A real estate business plan is an important step for any real estate agent looking to build a successful career in the industry. While there is no one-size-fits-all approach, there are certain key elements that should be included in any plan. First and foremost, it is essential to set clear goals and objectives.

A study of 2,877 business owners found that companies are twice as likely to secure loans and funding if they have a business plan and 75% more likely to grow. Another study showed that 64% of companies who created a plan increased their businesses, compared to 43% of companies that hadn't yet finished a plan. 

Your own business plan is an essential tool for any business, small or large. Real estate agents use business plans to map their marketing strategies, target their advertising, and track their progress. A business plan helps agents set goals and stay on track throughout the year. It is also a valuable reference point when meeting with clients and potential investors. 

While there are many different ways to create a real estate business plan, certain elements should be included in every scenario. These elements include an overview of the business, the company's goals and objectives, a marketing strategy, and a financial analysis. By having these key components, companies can ensure that their real estate business plan is comprehensive and will help them achieve their desired results.

Harvard Business Review (HBR) stated that the chances of success rose by 12% for those that spent no longer than three months on their plan . With any longer proving futile. So, how do you write a business plan for your real estate business without getting bogged down in the details? In this post, we'll look at actionable steps agents and brokers can take to outline, execute and measure the performance of a business plan.

As a real estate agent, you know that the housing market can be unpredictable. You need to be prepared for the ups and downs of the market, and one way to do that is to have a business plan. Your business plan will help you set goals and track your progress. It will also force you to think about the costs of running your business and how you will generate leads. There are many online resources that can help you write a business plan, but the most important thing is to get started. By taking the time to write a plan, you will ensure that your business is ready for whatever the housing market throws your way.

What is a real estate business plan?

A business plan is a written document that captures the future of your business. It details what you plan and how you plan to do it.

Real estate business plans are essential for two reasons. First, they provide a road map for agents to follow as they work to build their businesses. Second, they force agents to think through all the crucial aspects of their business, such as their marketing efforts, target market, and financial goals. 

By taking the time to write a Real Estate Business Plan, agents can ensure that they are taking all the necessary steps to build a successful business.

A Real Estate Business Plan is an essential tool for any business, whether you are just starting or have been in business for years. There are many benefits to creating a Real Estate Business Plan, including: 

• Having a Real Estate Business Plan forces you to take a step back and assess your business as a whole. It allows you to see where your business stands, and identify any areas that need improvement.
• A Real Estate Business Plan provides a roadmap for your business. It can help you to set goals and track your progress over time.
• A Real Estate Business Plan can help secure your business funding. If you seek investment from Venture Capitalists or Banks, they will often require a copy of your business plan before considering your request.
• A Real Estate Business Plan can help you to attract and retain top talent. If you are looking to hire employees or contractors, having a well-crafted business plan can be a significant selling point.
• A Real Estate Business Plan can be a valuable tool for managing day-to-day operations. A clear and concise plan can help you better decide where to allocate resources and how to utilize your team's time and talents best.
• A Real Estate Business Plan can help you to measure and track your marketing efforts. By setting specific goals and objectives, you can more effectively gauge the success of your marketing campaigns and make necessary adjustments along the way.
• A Real Estate Business Plan can serve as a valuable sales tool. A professional business plan can give you a significant competitive advantage if you are looking to sell properties or convert leads into clients.
• A Real Estate Business Plan helps to keep you organized and on track. Trying to run a successful real estate business without a plan is like trying to drive from New York to Los Angeles without a map - chances are, you'll get lost along the way!

Having a Real Estate Business Plan gives you credibility in the eyes of others. If you are working with other professionals such as lenders, appraisers, or title companies, having a well-developed business plan shows that you are serious about your business and increases the likelihood that they will want to work with you in the future.

Last but not least, creating a Real Estate Business Plan is empowering! Taking the time to develop a comprehensive plan shows that you believe in yourself and your business and sets the foundation for long-term success.        

Precisely, it conveys your business goals, the strategies and tactics you'll use to achieve them, potential problems you may run into along the way and how to overcome them, roles and responsibilities, SWOT analysis, and measurement strategies.

What should a real estate business plan include?

Real estate business plans are different from traditional business plans. 

Real estate agents need to focus on their target market, their uniqueness, and how they will succeed against the competition. Real estate business plans should also include an analysis of the current market conditions and the potential for growth in the future. In addition, real estate agents should outline their marketing strategy and have a budget for advertising and promotions. By taking the time to create a comprehensive business plan, real estate agents can increase their chances of success in this competitive industry.

Real estate business plans vary in length and complexity, but all should include the following elements: 

• An overview of the real estate market 
• A description of the agent's target market 
• A marketing plan 
• A financial plan 
• A discussion of the agent's competitive advantages 

Real estate business plans provide a roadmap for agents to achieve their goals. They should include specific strategies for generating leads, marketing properties, and closing deals. The business plan should also outline the agent's budget and target income. Additionally, the real estate business plan should set forth a schedule for prospecting, listing appointments, and open houses. By following a real estate business plan, agents can increase their chances of success in real estate.

How do you assemble a real estate business plan?

A business plan is essential for any real estate business, whether you're just starting out or have been in the industry for years. It provides a roadmap for your business, laying out your goals and strategies for achieving them. But how do you go about assembling a business plan?

First, you'll need to identify your target market. Who are you trying to reach with your real estate business? Once you know your target market, you can start developing your marketing strategy. What methods will you use to get potential clients? How will you differentiate yourself from other real estate businesses in your area?

Next, you'll need to put together a financial plan. What are your revenue sources? How much money do you expect to bring in each month? What are your expenses? How much do you need to save for a rainy day? A clear financial picture will help you make sound decisions for your business.

Lastly, don't forget to include a personal development plan. What skills do you need to improve to succeed in the real estate business? What classes or training programs can you take to close more deals and earn more commissions? A well-rounded business plan will help ensure your real estate business is booming.

Writing a Real Estate Business Plan in 11 Easy Steps

1. write a detailed business description.

There's a story and context behind your business, and the business description is where that should shine. Write a brief overview of your Real Estate business. Include your business goals and how you plan on achieving them. Then create a description of your company, including its history, structure, and other relevant information.

The mission statement is part of the business description — which helps keep the rest on the track. Many mission statements follow a familiar format, like:

"To be the best, full-service Real Estate company in the Triangle and to enhance our quality of life through active community involvement.".

In a microstudy of 200 mission statements, it was found that mission statements most often talk about the company's dedication to customers (85%), shareholders (37%), employees (21%), and society (3%).

As well as a defined mission statement, make sure to include:

• When you were founded
• Where you are located
• Who the leaders are
• Special advantages/partnerships
• Market opportunities
• Legal structure

A very brief real estate business description example is:

"Norris & Company Real Estate is Vero Beach's premier upscale real estate firm. They specialize in luxury waterfront homes and condominiums, particularly in Vero Beach and Indian River County, FL."

2. Market Analysis

Research the Real Estate market in your area and identify any trends or opportunities. Include this information in your business plan.

Real estate agents must constantly be aware of the market conditions in their area to serve their clients best. Agents can provide expert guidance and advice by understanding the trends and opportunities.

When writing your Real Estate business plan, including a comprehensive analysis of the market conditions in your area. It will help you better understand your client's needs and identify potential opportunities.

Your market analysis should include:

• An overview of the Real Estate market in your area
• Identification of any trends or opportunities
• An explanation of how you will address these trends or options in your business plan

By including this information in your Real Estate business plan, you will be able to show potential clients that you are knowledgeable and prepared to help them navigate the Real Estate market.

3. Perform a SWOT Analysis

A SWOT analysis is a technique used to identify and define several key characteristics that will impact your business: Strengths, Weaknesses, Opportunities, and Threats.

Think of it this way:

Strengths and Weaknesses are internal. Threats and Opportunities are external.

An analysis can be as simple as making lists of items under each category.

For example, a strength could be a solid and experienced sales team, while a weakness might be that your business is expensive to run because you haven't nurtured supplier relations.

It could be as simple as filling four sheets of paper with descriptions of the strengths, weaknesses, opportunities, and threats — collaboratively or alone. To make the answers clearer and the exercise more manageable, you can use questions like:

• What do our competitors do better than us? Threat .
• What's our unique selling point? Strength .
• Why have customers churned in the past? Weakness .
• Which markets are underserved in your territory? Opportunities .

4. List Your #1 SMART Goal

It's great to be ambitious, but focusing on one goal makes it easier to stay motivated, track progress, and see the measurable effect of achieving it. Even better if that goal is a SMART Specific, Measurable, Attainable, Realistic, and Timed – goal.

Examples of SMART goals you might set for your growing real estate business are:

• Build a new real estate website in the next three months
• Hire and onboard three new SDRs in the next six months
• Increase monthly leads by 50% by next year
• Sell ten houses in the Dallas metro area in the next 30 days.

Pick one at a time and focus on it! Sticking to an achievable goal with a time limit makes it more likely to come to fruition. And, even just writing it down makes you 42% more likely to attain it.

5. Identify Your Market Niche

Before setting out your facts and figures, it's essential to spotlight your target market and how you'll serve this niche. It helps you decide what's realistic and feasible to achieve in your business plan.

Determining your market niche is a fancier way of saying: Who are your services best suited to? While honing in on a narrow target seems a little exclusionary, niche marketing can save you time, effort, and money on marketing.

One tool to help you define your market is a buyer persona. A persona is a fictional typification of your ideal customer, with information that enables you to steer your sales and marketing in the right direction.

It's essential to assess your niche and ensure it is consistent with the market in your area.

For example, if you've decided to focus on first-time buyers, do some research to look at relevant stats and figures:

• What percentage of sales in your market were to first-time buyers in the last 12–14 months?
• What was the average sales price to first-time buyers?

Also, assess how competitive this market is:

• Are you the only agent catering to the young first-timer?
• Are you competing with well-known heavy hitters?

A competitive SEO audit can be a helpful starting point in finding your competitors in the online space, where almost all leads will turn at some point in the buying process.

6. Implementation Plan

Before you can begin implementing your real estate business plan, you must clearly understand your goals and objectives. What are you trying to achieve with your business? Are you looking to buy and hold properties for long-term appreciation, or are you more interested in flipping houses for a quick profit? 

Once you have a good idea of your goals, you can start to put together a plan for how to achieve them. For example, if you're interested in buying and holding properties, you'll need to generate enough income from rentals to cover the mortgage and other expenses. If you're more interested in flipping properties, you'll need to find motivated sellers and then negotiate deals that provide you with a healthy profit margin. 

Regardless of your goals, careful planning is essential for success in the real estate business.

Breaking your goals into action steps makes them more tangible and ensures you're making strides to fulfill them. Here are some keys to converting your real estate business plan into actual business practices.

7. Monitoring & Evaluation

Successful real estate businesses have a plan to monitor and evaluate their progress. This plan includes setting clear goals, measuring progress against those goals, and making adjustments as needed. Without this proactive approach, it can be challenging to identify areas of improvement or stagnation. 

Additionally, a well-executed monitoring and evaluation plan can help to keep employees focused and on track. By regularly assessing performance and goal progress, businesses can ensure that they are making the most of their resources and achieving their desired results. Ultimately, a sound monitoring and evaluation plan are crucial for any real estate business that wants to stay ahead of the competition.

8. Risk Management

Real estate investing comes with a certain amount of risk. But with a well-thought-out risk management strategy, you can minimize the potential for loss and maximize your chances for success.

One of the most critical aspects of risk management is diversification. Investing in various property types in different markets spreads your risk and increases your chances of finding a profitable investment.

Another critical element of risk management has a solid business plan. Thoughtfully consider each step of the real estate investing process, from finding deals to financing them to managing the properties. Have a clear exit strategy for each investment to know when to sell or refinance. And always remember to stay within your comfort level; don't let greed or fear make decisions for you.

With careful planning and discipline, you can create a real estate investment portfolio that withstands market fluctuations and generates long-term wealth.

9. Financial Plan

Having a sound financial plan for your business is essential. To assist you, we've created spreadsheets you can use to estimate goals, income, and expenses. You will find specific instructions in the spreadsheets, but here are some guidelines for creating a financial plan:

To create your plan, determine what your expenses will be.

Here are three main areas your expenses may fall into:

• Licensing: These expenses will include training, state exam fees, etc.
• Personal: This can consist of your wardrobe, technology fees (like computer and phone), and car fees.
• Business: Business expenses include broker fees, website and MLS fees, marketing, advertising, etc.

Our template divides these expenses into the startup and yearly costs to help you discern which payments will recur and which are one-time-only. Here's an example of what your startup expenses might look like.

Yearly expenses might include recurring costs like office rent, electricity bills, and annual license fees.

Estimating income is the biggest concern for most new agents. To do this, you must decide how much money you need to make in your first year and how much you would like that figure to grow. You will also need to research some basic statistics for your market, like the average sale price for homes.

Use our business plan template to help calculate these numbers.

Transactions and Leads 

To meet your income goals and cover expenses, you'll need to conduct a certain number of transactions. And, to complete a certain number of transactions, you'll need to work a set number of leads. There's no need to work this figure out by hand. ‍

Our template will automatically calculate the number of transactions and leads you will probably need to meet your goals. Still, you will have to assess these figures to decide whether they are reasonable. For example, if you plan to work part-time as an agent in your first year but need to close 20 transactions to meet your goals, you are unlikely to have enough time.

10. Create a Personal Development Plan

A personal development plan is an essential tool for any real estate business. By taking the time to assess your strengths and weaknesses, set goals, and create a roadmap for success, you can ensure that your business is on track to reach its full potential. While it may seem daunting, creating a personal development plan is simple. 

Start by taking stock of your current situation. What are your strengths and weaknesses? What are your goals for the future? Once you clearly understand where you are starting, you can begin to map out a plan of action. Set realistic goals and create a timeline for achieving them. Put together a resources list and ensure you have everything you need to reach your goals. Finally, implement your plan and monitor your progress along the way.

Remember, your development plan should be flexible and adapt as your needs change over time. With some planning and effort, you can create a roadmap for success that will help you achieve your long-term goals in the real estate business.

11. Write an Executive Summary that Captures the Vision

Your executive summary is an anchor point you can use to understand the overall goals, cement the parameters of your target market, and make decisions aligned with your plan. It's also a way to get inspired by your original vision.

For real estate, it would include points on:

• Target neighborhoods and price ranges
• Target clients and a brief description of the persona
• Brief marketing plan overview
• Market threats and opportunities

Think of the executive summary as the section of your business plan you would explain to a friend a football game when asked how you plan to make money as an agent or broker in your local town/ city or state.

Note: due to the specific details in the executive summary, this part of the business is typically one of the last completed items.

Real Estate Business Plan Template

If you're considering starting a real estate business, you'll need to create a business plan template. Here's a basic template that you can use to get started. Remember that your business plan should be tailored to your specific business and industry.

• Executive Summary

The executive summary is a brief overview of your business plan. It should include your company's mission statement and an overview of your products or services, target market, and growth strategy.

• Company Description

This section will provide an overview of your company, including its history, structure, and team. Be sure to include information on your company culture and values.

• Mission statement

In this section, you will summarize the reason for being and the guiding principles of your organization. For example: "We are a nonprofit that provides free legal aid to those in need." You can also provide a brief overview of what we want them (the users) to come into contact with. 

Why should they care about our mission or message by telling them why it is vital to their lives now and later down the line?

• Company goals

This section will provide a high-level overview of your company's top business goals for its first years in operation.

• Market Analysis

In this section, you will need to analyze your target market thoroughly. It should include information on your customers, your competition, and the overall industry.

• Product or Service

In this section, you will need to describe your product or service. Be sure to include information on your pricing strategy and any unique features or benefits your product or service offers.

• Marketing and Sales Strategy

In this section, you will need to outline your marketing and sales strategy. It should include information on how you plan to generate leads and convert them into customers.

• Operational Plan

This section will need to provide an overview of your business operations. It should include your production process and distribution and fulfillment strategy.

This section will briefly describe what your company offers to customers.

• Target customer

To effectively reach the people we want as customers, you must provide a clear overview of who they are and how your product or service can benefit them. In this section, I'll go over some questions worth asking yourself when determining who your potential clients may be. 

• Best Practices

Write out your ideal practices for how you'll deal with qualified leads versus unqualified leads, how quickly you'll follow up with interested parties, your methods for helping a leader throughout the final steps of the sales process, and how you'll stay in touch with customers after papers have been signed.

• Financial Plan

In this section, you will need to provide detailed financial information for your business. It should include your income, balance, and cash flow statements. The following will include startup expenses, assets, liabilities, capital, break-even analysis, and loan repayment.

• Exit Strategy

This section will need to provide an overview of your exit strategy. It should include information on how you plan to sell or exit your business in the future.

Individual Agent Real Estate Business Plan

Real estate agents need a business plan like any other entrepreneur. A real estate business plan outlines your goals, strategies, and how you plan on achieving them. It is essential to have a business plan because it will help you stay focused and on track. Real estate is a competitive industry, so you need to be able to stand out from the rest.

A business plan will also be helpful if you ever need to seek funding for your business. Investors and lenders will want to see that you have a well-thought-out plan before they give you money. 

Creating a Real Estate Business Plan is essential if you want to build a successful career in real estate. With our easy-to-use template, you can get started today and be on your way to achieving your long-term goals.

There are many benefits to creating a Real Estate Business Plan, including:

• Clarifying your goals and strategies
• Mapping out a clear road map for your business
• Identifying potential obstacles and solutions
• Helping you stay organized and on track
• Increasing your chances of success

So, if you are considering starting a real estate business, sit down and write a business plan. It will be worth it in the long run!

Real Estate Team Business Plan

Before you start your real estate team, it's essential to have a business plan in place. It will help you define your goals, map your strategies, and track your progress over time. While there is no one-size-fits-all approach to creating a business plan, certain key elements should be included. Here are a few of the most important things to keep in mind:

• Your team's mission statement: What sets your team apart from the competition? Why do you exist?
• Your target market: Who are you trying to reach with your services? What needs do they have that you can address?
• Your marketing strategy: How will you get your target market and communicate the benefits of working with your team?
• Your financial goals: How much revenue do you hope to generate? What are your expenses? How will you fund your business?

By thoughtfully developing your real estate team business plan, you'll increase your chances of success in an increasingly competitive industry.

Real Estate Brokerage Business Plan

A real estate brokerage business plan is a document that outlines the goals, strategies, and financial projections of a real estate brokerage business . It should include an executive summary, market analysis, business model, operational plan, and financial plan. The executive summary should briefly describe the company, its target market, and its competitive advantages. The market analysis should assess the size and growth potential of the target market. 

The business model should describe how the real estate brokerage plans to generate revenue. The operational plan should outline the business's day-to-day operations, including staffing and marketing initiatives. Finally, the financial plan should provide detailed information on the anticipated costs and revenues of the company. A well-crafted real estate brokerage business plan can be valuable for attracting investors and achieving long-term success.

Remember that your business plan is a living document that should be updated as your company grows and evolves. Regularly reviewing and revising your business plan ensures that your real estate brokerage is always moving in the right direction.

Ready. Set. Plan

Whether you've got a ready-to-execute business plan or it's still being drafted, the most important thing is to start now — and fast.

At its core, a real estate business plan should outline the steps necessary to achieve specific goals, such as increasing sales or expanding into new markets. It should also identify potential obstacles preventing the business from achieving its objectives. By taking the time to create a comprehensive business plan, real estate businesses can increase their chances of weathering storms and coming out on top in the long run.

A business plan puts you on a clear track that makes your business 75% more likely to grow.

By following the above points, you'll be well on writing a comprehensive Real Estate Business Plan.

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Building a Solid Foundation: How to Create a Real Estate Business Plan That Works

A killer real estate business plan isn't just about setting a goal to hit 1 million in sales next year. (It would be a lot easier if it were!) 

A truly great real estate business plan defines exactly what drives your business, where you're headed, and how you'll navigate the market's unpredictable currents. It should be a razor-sharp action plan to scale your real estate empire. 

So, how do you craft this master blueprint without getting bogged down in the details? 

If you’re ready to join the cast of Million Dollar Listings—or if you just want to grow your modest real estate business—we can help.   

We’re going to break down how to create an actionable real estate business plan in just six steps. Your future self, with a thriving real estate portfolio, will thank you. 

What Should a Real Estate Business Plan Include?

A real estate business plan is a comprehensive document designed to help you navigate the ups and downs of the real estate industry and plan for long-term growth. 

TL:DR: A great business plan serves as a complete roadmap to help you get from where you are now to where you want to be. 

So, what should your real estate business plan include? The best plans include these eight sections: 

• Executive Summary: A concise introduction to your real estate venture. Highlight your primary goals, the niche you're targeting, and your unique value proposition in the real estate market.
• Business Description: Discuss the scope of your real estate operations—whether you're focusing on residential sales, commercial properties, rentals, or a mix. Also, mention the regions or neighborhoods you're targeting.
• Market Analysis: Delve into housing trends, regional property demand, and average property values in your selected areas. Study growth patterns and forecast potential shifts in the market.
• Marketing and Sales Strategies: Explain how you'll attract listings and buyers. This might include leveraging MLS, hosting open houses, using digital marketing tactics, or networking at community events.
• Service Offerings: Detail the range of services you plan to offer. This could include buying/selling, property management, consultation, or even staging homes for sale.
• Organizational Structure and Management: As a solo realtor, this might be about your role and responsibilities. If you have or plan to have a team or build a brokerage, describe team member roles, responsibilities, and expertise.
• Financial Projections and Strategy: Outline anticipated earnings from property sales or rentals, operational expenses, and commissions. Factor in marketing costs, licensing fees, and other industry-specific expenses.
• Growth Plan: Since real estate is as much about scaling and expansion as it is about individual sales, describe how you plan to grow—by expanding into new areas and niches, or by adding more agents to your team.

Keep in mind—these sections are suggested, not required. If some of these sections don’t make sense for your business, feel free to drop them. Maybe you want to add something else? If you’re not sure where the heck to start—that’s where this list comes in handy. 

Why Do I Need a Real Estate Business Plan?

Honestly—you don’t have to have a business plan. If you’re feeling good about your business and happy with your growth, feel free to click away. But, if you’re not closing as many deals as you’d like or if you’re just not feeling great about your business’s direction, you might want to stick around. 

In addition to increasing your sales, an effective business plan can help you: 

• Gain a Competitive Advantage : The world is full of real estate professionals. To succeed in this industry, you need an edge. A real estate business plan gives you an advantage in the market because so few competitors will create one. You'll know the exact steps to take to grow your business. Case in point: a well-crafted business plan can boost your chances of success by 12 percent .
• Mitigate Risk: Every new business venture is a risky proposition. Back in 1994, nobody thought Jeff Bezos could sell books online. Now, Amazon is one of the biggest companies in the world, and Mr. Bezos has a cool net worth in the $150 billion range. While your real estate business plan might not help you hit the billion-dollar range, it will help you mitigate risk by helping you identify potential threats and weaknesses.  
• Gain a Deeper Understanding of Analytics: Drowning in data? A great business plan will outline your goals and campaigns, and help you track the metrics that really matter. You can look at your plan in a year and assess your progress toward your goals, and adjust your approach accordingly. This will help you eliminate poor tactics or destructive behaviors and double down on what works for your business.

A business real estate plan also gives you something to celebrate. When you hit the milestones in your plan, reward yourself with a fancy dinner or pop open a bottle of champagne. Treat yo’self. Then get back to selling! 

6 Steps to Create an Effective Real Estate Business Plan Fast 

Now you know what your real estate business plan should include and why they matter. Cool. Now it's time to actually create that killer plan that will help your business grow. Ready? Follow these step-by-step instructions to create a proven plan of action you can use to grow your business.

1. Start With Your Story

Who are you as a real estate professional? Are you a master of landing the right deal? Love helping families find their forever home? 

All good business plans start with a story that explains who the individual or company in question is, what they do, and the business goals they want to achieve.

To accomplish this, make sure your business plan includes:

• An executive summary: A sentence or two that summarizes what your business does.

Example: "I sell homes to middle-income buyers in the greater Denver area."

• Your mission statement: A few sentences that explain why you do what you do.

Example: "At Smith Real Estate Group, we strive to provide our clients with amazing experiences they'll remember for the rest of their lives. Buying a home is a monumental responsibility. Our goal is to make the process simple, fun, and stress-free for our clients so they're delighted with their purchases."

• Your vision for your business: A couple of sentences that illustrate what the world will look like once you've achieved your mission. 

Example: "Eventually, I want to be the most trusted name in Boise real estate, effectively serving a range of clients who come to me to get the highest possible price for their homes."

• The SMART goals you want to achieve: The individual objectives you'll work to accomplish, i.e., "Sell 15 homes next year," or "Make $150,000 annual salary." Remember, the best goals are SMART, which stands for specific, measurable, achievable, relevant, and time-bound. 

Example: "I'll start making $150k a year (or more) within 36 months. To accomplish this, I'll invest in new marketing techniques to promote my services so I can sell 15+ homes every year."

2. Research Your Target Market

Which area of the real estate market do you specialize in? Do you sell high end luxury condos? Help businesses find the right place to expand? Maybe you’re all about helping folks find tiny homes. 

To answer this question, I suggest a fair bit of research—especially if you're brand new and don't have an established client base. Look for sections of the market that are growing and ones that are slowing down.

It's important to look at data for the location you’re serving . Nation-wide trends are useful to a point. But you really need to know what's happening in your corner of the world.

Also, research your city's other agents, brokerages, etc., as you'll compete with them for potential clients. The more you know about them, the easier it will be to differentiate yourself and achieve your short and long-term goals in the real estate industry.

3. Identify Your Ideal Clientele

Now it's time to zero in on the specific people you sell to.

There are plenty of options. You could be a condo specialist and only engage new leads who want to buy condos in your area. Or focus on real estate listings for new home buyers. Or work in the top end of the market and help wealthy individuals settle into their second homes. You do you. 

The specific demographic you choose to serve should depend on the local market, your unique skill set, and your passions. Find a balance between these three things.

When you know your ideal clientele, take a moment to define buyer personas .

Not familiar with the term? Don’t worry—it's not as weird as it sounds. A buyer persona is a fictional person you invent to represent your real-world target market. Feel free to get weird with it—your persona could be Fred the Family Man, or Suzy the Soup Maker. Just be sure to include personal details, such as goals and pain points to make it useful. 

While it may seem silly, a buyer persona keeps you focused on your ideal clientele so you can ensure your marketing efforts always match the people who want to help. 

4. Perform a SWOT Analysis

A SWOT analysis helps you pinpoint your strengths and weaknesses and find the opportunities and threats in your chosen real estate market. Think of it like a battle plan to help you conquer your real estate market. Here's a quick example:

• Strengths: Maybe you have amazing people skills, so you host open houses for your clients on a regular basis. This helps you meet potential buyers and sell clients' homes. It also acts as a terrific lead generation strategy . Or, maybe you’re really, really good at staging older homes. 
• Weaknesses: Maybe you hate social media, so you never use platforms like Facebook and Instagram—even though other agents use them to close deals . This would be a weakness, but it doesn’t mean you need to change things. Instead, acknowledge it and adjust your strategy accordingly. 
• Opportunities: If most of the real estate professionals in your town focus on low- to mid-priced real estate listings, you could target the small collection of luxury buyers in the area.
• Threats: Are there a ton of other real estate agents in your area? Maybe a nationwide brokerage is opening a new office and threatening to take your knees out with a bat. (Who knew real estate could be so brutal!) The point is: being aware of threats helps you target your services effectively so you can become a real player in the game. 

5. Set a Clear Marketing Strategy

You might run the best real estate brokerage in the United States. But if nobody knows about your real estate team's supreme skill set, you’re not likely to make many sales. Which won’t be an issue if you’re running a mob front—but if you actually want to make a profit, marketing is crucial. 

Fortunately, you've defined your target market, ideal clientele, and personal strengths and weaknesses. So, building an effective marketing strategy should be easy. 

Think about your target audience: how can you reach these people? Social media is probably your best bet if you serve young, first-time homebuyers. If you serve an older, more affluent crowd, in-person meetups and cold-calling techniques might be a good option.

Consider your competitors, too. What channels do they use to connect with new leads? Use another approach to differentiate your services better.

Finally, take a hard look at your abilities. Just because a marketing plan works for one person or company doesn't mean it will work for yours. Since you're building your business, you need to assess your strengths and weaknesses. This will help you implement strategies that suit your skills and disposition.  

6. Make a Financial Plan

Yes, we gotta talk about money. Adding financial details to your real estate business plan gives you a strong starting point to drive growth. 

How much will you spend on licensing, lead generation, and a real estate CRM ? Remember to budget for everyday expenses while working, like gasoline for your car and meals while traveling. (Just no two martini lunches!) 

You should also include the amount of money you want to make after expenses and taxes and the number of deals you'll need to close to make the numbers work together.

Most people shy away from their finances. Don’t make this mistake. You need to know what your operating expenses are to know what your cash flow is. If you don't know that, you won't know if you're on track to reach your short-term or long-term goals.

One more thing: make sure your financial plan is realistic . Dreaming of million-dollar closings might feel nice, but those numbers won't help you. Do your research and input proper cost estimates. 

3 Tips to Create a Real Estate Business Plan That’s Actually Useful 

BOOM! Now, you know how to create a business plan for your real estate business. Go you. But to make sure your plan is top-notch, keep these three best practices in mind:

KISS: Keep it Super Simple

It’s easy to get lost in the weeds and wind up overwhelmed. Don't overcomplicate the process.

Your real estate business plan doesn't need to be professionally designed unless it’s being shared with business partners or investors. You can write it in Word on your laptop computer. Or scribble it on a napkin while you sip a cocktail at the bar. Whatever feels good to you. 

The most important thing is that you actually create a plan for your real estate business . The way it looks is less crucial. Don't get caught up in the details. 

Differentiate Yourself

What makes you special? No, not just in the “My mom says I'm special!” way. Like, what really makes you stand out from the other real estate agents and brokers in your local area?

Ask yourself questions like " What can I do better than everybody else?", “Why would clients want to work with me over another agent?” or "What am I willing to do that my competitors aren't?"

Did you come up with a few things? Good, now add them to your real estate business plan.

Being average is boring—so figure out where you stand out. Then, infuse it into every aspect of your business, from your website to how you engage with clients. That way, people know what sets you apart.

Revisit Your Plan Regularly

One more thing: your real estate business plan should be a living document. In other words, you should revisit it regularly to make sure it's actually benefiting your business.

Did you choose the right market? Are you serving the right clientele? Is your marketing plan actually working? Assess your business quarterly to see what's working and what isn't. Then use the takeaways to adjust your approach. That way, you can “always be closing” more deals. 

Pro tip: when starting out, use a business plan template . This gives you a starting point and makes it easy to edit your plans at any point. 

Level Up Your Real Estate Business 

If you want to build a successful real estate business, you need a plan. Luckily, you’ve already got one. 

Once you create your plan, you'll have a clear vision you can implement systematically to grow your business faster.  

Know what else will help you succeed in this industry? A solid CRM software with proven contact management, cold calling, email marketing, and sales reporting features.

Sound good? Give Close a try. We make it super easy to track leads, follow up with prospects, generate referrals, and turbocharge your real estate business.

Sign up for a free 14-day trial today to experience the power of Close!

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How to Plan, Start, & Grow a Real Estate Business: 27 Essential Tips

Published: February 21, 2024

Starting a real estate business isn’t for the faint of heart, but there’s hope for 2024. It’s expected that housing prices will soften in certain parts of the country , and despite what we’re hearing, experts are not predicting a housing market crash .

If the real estate world is calling you, don’t be put off. Here’s a down-to-earth look at how to start your own real estate business, plus advice for avoiding mistakes that hijack momentum as you grow.

In this article:

It’s Never Too Late to Start Your Business

How to start a real estate business, how to start in real estate, how to grow your real estate business, common professional pitfalls (and how to avoid them).

For many new real estate agents , real estate is their second, third, or even fourth career.

Whether you’re a solo agent or new to a team, if you have dreams of outperforming the average real estate agent salar y ($44,507 per year), you need to start thinking like a business owner — and that means planning.

Free Real Estate Planning Template

Use this free template to plan the marketing, sales, and growth for your real estate business.

• Company Overview
• Territory Overview
• Market Penetration Strategy

You're all set!

Click this link to access this resource at any time.

• Craft your ideal personal plan.
• Write a real estate business plan.
• Build a consistent marketing plan.
• Get a website.
• Prospect consistently.
• Nurture leads.
• Have good time management.

1. Get a CRM.

Barry Jenkins is the broker-owner of the #2 Better Homes and Gardens Real Estate Team in the United States. He’s also a guy who hates inefficiency. “I, to a fault, like to make things easy. The reason my business is so successful is that it was built on the core principle of leverage.”

In order to bring that principle to life, Barry uses his CRM as a true lead conversion machine . A CRM is a Customer Relationship Management system that helps you organize your contacts and come up with actionable insights. With it, you can walk leads through relevant nurture campaigns based on lead source or automate the entire transaction process.

Get HubSpot's Free CRM for Your Real Estate Business

This is incredibly useful in real estate because the home buying process is so long with many different steps, multiplied across many agents and even more leads and customers.

Using a CRM to achieve boss-level organization is how Barry and his team sold 240 homes in a year. And it’s not all about the front end, either. Barry also uses his CRM to send automated onboarding drips to new team members and keep the business admin completely streamlined so that nothing important ever falls through the cracks.

2. Craft your ideal personal plan.

Before you set the right financial goals for your business, you need clear financial goals for your life.

Commissions are great, but — let's face it — we all came into this business wanting something bigger and better than what we had.

Consider the following questions:

• What time do you want to start work?
• What time do you want to finish?
• How do you want to feel each day?
• How much money do you want to make?

Top tip for defining your personal plan: Think about the real why. Running a successful real estate business is more about the impact on our lives or our families' lives and less about earning cash. Get to the real motivator behind work.

3. Write a real estate business plan.

Start writing your real estate business plan, paying special attention to the things that set you apart from other businesses in your area. Give it some real thought. This is where your personal and business identities can really come together to make profit-driving magic.

Start with these questions:

• How does selling real estate make a meaningful difference for you, your prospects, and even the world?
• What are the values and principles that drive your real estate business?
• How are those different from the real estate business next door?
• What are the three to five things you are going to own completely in the business?
• Who will take care of the rest?

Even if you’re just looking to take administrative work off your plate by hiring your first virtual assistant, it's critical to create that big-picture vision to keep your team inspired and avoid repeating unproductive patterns.

Top tip for writing your business plan: While creating that big-picture plan, make sure you also pay attention to the details. Writing your plan is an opportunity for you to explore ideas and see what’s feasible.

Featured Resource: Free Business Plan Template

Be the agent who’s always there, and you’ll automatically beat the herd.

8. Have good time management.

If you’re like most of us, a big part of the dream is to have more time and energy for the things that really light you up.

But most agents who set out to build a real estate business haven’t built that into the plan. They end up with a revolving door of team members and have to outwork the business problem du jour. But it doesn’t have to be that way.

For experts in automation, a motivating factor is saving time. By eliminating manual work through automation, you can free up time to focus on the activities that actually drive revenue.

The ability to do marketing automation further underscores your need for a CRM, which ends up acting as the engine that supports your efforts.

Top tip for introducing automation: Start with low-risk tasks that you don’t want to handle.

2. Making social media mistakes.

Connecting with prospective clients means using social media. But the scale and scope of this platform mean that any faux pas — no matter how small — can negatively impact your reputation and your business.

To help reduce the risk of mistakes, follow these three rules.

First, be clear and concise. Don’t use 50 words when 10 will do. This limits the chance of a social media gaffe.

Next, only speak about what you know . This means that if you have a property that’s potentially coming up for sale, don’t post about it until you know for sure. This helps engender client trust and improves your reputation online.

Last but never least? Apologize if you get it wrong. Despite your best efforts, everyone eventually makes a mistake on social media. When it happens, don’t minimize it or pretend it never happened. Instead, own it, apologize, and move on.

3. Trying to do it all alone.

When you start your business, chances are you can handle the workload on your own. As you start to see success, however, you’ll want to scale — and this means bringing in help.

At first, this could be someone to help with sales and purchase documentation or to provide assistance finding and calling leads. Eventually, it may lead to hiring another real estate agent along with a larger complement of office staff.

The takeaway? As success scales, so does complexity: Get ahead of the challenges by bringing in help sooner rather than later.

4. Prioritizing paper.

Despite digital advancements, many real estate processes remain paper-based. But this doesn’t mean your business has to follow suit.

Here, robust CRM tools are a great way to ensure you’ve got access to the data you need, when you need it. While you’ll still have to handle paper reports, you can reduce the risk of lost or duplicate data by digitizing these documents and adding them to your database.

5. Thinking short-term.

Success in real estate means thinking about what comes next — the next client, the next sale, or the next purchase.

The problem? This can lead to short-term thinking that ignores what got you success in the first place: your clients.

As a result, it’s critical to forge a relationship with clients you’ve helped in the past. Not only does this increase the chances that they’ll come back to you if they choose to sell their current home or purchase a new one, but they may also refer you to their friends and family.

Get Ready to Put in the Work

Success in real estate is not simple. With the right approach to business planning, service marketing, and lead generation, however, it’s possible to build a real estate business that helps you achieve life goals and establish a firm financial future.

Best bet? Know why you’re getting into the industry, be prepared to put in the work, and learn from your mistakes.

Don't forget to share this post!

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Real Estate Agent Business Plan

A real estate agent business is one of the best ways of getting paid for your expertise in the real estate industry.

If you have a thorough knowledge of the market, are a brilliant negotiator, and can think on your feet then being a real estate agent might be the right career for you.

Industry Overview

Research says the global real estate agent and brokerage market are expected to grow from $960.12 billion in 2020 to $1008.95 billion in 2021 at a compound annual growth rate (CAGR) of 5.1%. Also, the market is expected to reach $1351.1 billion in 2025 at a CAGR of 8%.

The above figure suggests It is a great market to be in, but you need a well-designed business plan to succeed as a real estate agent. A business plan can help you in having a clear strategy and also in keeping a track of your progress.

But what else can a business plan do for your brokerage firm, and how to write one? Read on to find out.

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Things to Consider Before Writing a Real Estate Agent Business Plan

Find a way to get leads.

The majority of your leads, at least at the beginning of your career, would come from constant effort and a variety of sources. So before getting started you’ll have to figure out all the possible ways of generating leads.

Make a networking plan

Having a network comprising of your customers, businessmen, and even your competitors is necessary for a real estate agent. Because you never know where you’ll get your next big client.

Hence, figuring out a networking strategy is important.

Set up your website

Nowadays, a lot of people look for real estate services online. Hence, it makes it important for you to set up a website for your business.

Making a website also contributes to building your credibility and brand image. Hence, building an optimized and active website can do wonders for your business.

Be prepared for changes in the industry

The real estate agent is changing at a rapid pace. Everything from changes in the economy to people’s buying behavior, and income has a major impact on the real estate market. Hence, it is important for you to have a strategy to deal with such changes.

One of the simplest ways to do so is to have a dynamic and customizable real estate business plan. It helps you deal with changes in a smooth and effective way.

How a Business Plan Can Help You?

As a real estate agent, clear business goals and a constantly evolving way of doing business can be extremely profitable for your business. Apart from that, networking is a key aspect of a real estate agent’s business.

A professional business plan can help you manage all of the above efficiently without any hassles.

Having a plan makes managing your business easier and lets you focus on the more pressing concerns of a business.

Moreover, it gives you a competitive edge over those who jump right in, without any plan.

Real Estate Agent Business Plan Outline

This is the standard real estate agent business plan outline which will cover all important sections that you should include in your business plan.

• Products and Services
• Management Team
• Success Factors
• 3 Year profit forecast
• Startup cost
• Funding Required
• Our business offering is listed below:
• Industry Analysis
• Market Trends
• Target Market
• Sales Strategy
• Targeted Cold Calls
• Publications
• Pricing Strategy
• Management Summary
• Hiring Plan
• Important Assumptions
• Brake-even Analysis
• Profit Yearly
• Gross Margin Yearly
• Projected Cash Flow
• Projected Balance Sheet
• Business Ratios

How to Write a Real Estate Agent Business Plan?

A business plan should be clear-cut and ever-changing. It should have goals, but also be flexible at the same time.

Moreover, it should be customizable as per your target market and location. You can write such a plan in many ways.

Although there are several changing and fixed aspects of a real estate agent’s business plan, there are certain essential areas that should be included to write a good business plan.

They are as follows:

1. Executive Summary

The executive summary section sums up what your entire business idea stands for. It is a brief overview of all of your business’s functions, including finances, target audience, operations, marketing, sales, etc.

This section, if written properly, can help you get funded as it presents your idea to the investors in a precise way and helps you gain their confidence.

2. Company Summary

This section basically consists of all the information about your agency’s history, its current situation, the idea behind its existence, and also the finances and funding it requires for becoming profitable.

3. Products and Services

In this product and services section, you’ll define your niche. Having a niche in real estate helps you get a better knowledge of the market and better deals in return. It also helps you meet the right people and the right customers.

As a real estate agent, you can decide whether you’ll deal with office spaces, residential spaces, rentals or buying, selling, etc. Working with a specific set of customers most of the time helps you stay at the top of your game in the real estate market.

4. Market Analysis

A thorough and ongoing market analysis helps you know the market trends and your target audience better. It helps you stay updated with the demands of your customers and how you can fulfill them in the best way possible.

Not just that, it also helps you in knowing where you stand in the market when you need to change your business model with a changing market, and when you need to upskill to stay relevant as a real estate agent.

5. Strategy and implementation

After you are done analyzing the market, writing this section would be a cakewalk. As you are familiar with the market you can formulate the best strategy to thrive in it.

As a real estate agent, having a good advertising strategy, sales strategy, and essentially a good pricing strategy is of utmost importance.

6. Operations Plan

The operations plan section in your business plan includes the day-to-day functioning of your company, as well as your goals and strategies to achieve them.

It is an ever-changing section and has to be tweaked as per the demands of the industry. Breaking your goal down into smaller milestones in this section is an effective way of writing it.

7. Financial Plan

A financial plan decides whether your agency would succeed or not. It prevents you from having mismanaged finances, and a dearth of funds and also helps you in managing the cash inflow of your business.

Download a sample real estate agent business plan

Need help writing your business plan from scratch? Here you go; download our free real estate agent business plan pdf to start.

It’s a modern business plan template specifically designed for your real estate agent business. Use the example business plan as a guide for writing your own.

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Business Plan Summary

A business plan can not only help you with the management of your business but also work as a road map to success.

A real estate agency’s cash inflow is on the irregular side, but a business plan can help you thrive with that too. Having a plan gives you a clear idea of the functioning as well as the spending of your business.

After getting started with Upmetrics , you can copy this sample real estate agent business plan template into your business plan and modify the required information and download your real estate agent business plan pdf or doc file.

It’s the fastest and easiest way to start writing your business plan.

So, what are you waiting for? Start planning

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About the Author

Vinay Kevadiya

Vinay Kevadiya is the founder and CEO of Upmetrics, the #1 business planning software. His ultimate goal with Upmetrics is to revolutionize how entrepreneurs create, manage, and execute their business plans. He enjoys sharing his insights on business planning and other relevant topics through his articles and blog posts. Read more

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Create a Real Estate Business Plan: Template, Tips & More

A real estate agent business plan is a document that outlines your comprehensive strategy to grow your real estate business. It outlines important milestones of your approach, identifying what your goals are and how you will achieve them.

Because of the nature of the real estate business, you can construct plans as a broker, agent, etc. There are several ways to focus your goals and tactics when you are writing a real estate business plan, and each specific role you have will change what you’re trying to achieve and how you will do it.

It’s fundamentally important to remember that in real estate, there are two things to keep on the top of your mind:

• You are your own boss and manage your own business.
• Being busy doesn’t always mean that you’re making money.

Combining these two important thoughts leads us to one conclusion — that having a written-out plan will help determine what you’re trying to accomplish and will help keep you committed to a specific plan of action. A business plan for real estate agents is sure to help you identify measurable goals while helping you stay on a predetermined route to reach your ambitions.

Additionally, a plan will identify prospective issues you expect to run into and how you plan to overcome them. The plan will assign roles and responsibilities, and allow you to measure your success as your business progresses.

It’s important to know that you’re not in this alone – we have an experienced team of coaches who can help you  create a real estate business plan that makes it simple and easy.

Why Create a Real Estate Business Plan?

Studies  have shown that creating a business plan for real estate can increase your chance of success by 12%. Additionally, it can raise your chances of success by 27% when you commit to writing a real estate business plan and combine it with other things like talking to prospective customers, making marketing materials, and getting yourself ready for business.

What’s more, you will be taken more seriously by potential business partners, brokers, and banks because you have dedicated time to sit down and devise a written plan that precisely outlines the actions you plan to take. This shows that you have placed significant personal investment in your business, and gives others peace of mind that they can join you in this venture.

A real estate business plan gives you a clear direction and an operational checklist for identifying your goals. Some questions it will answer are:

• Who is my prospective client?
• How much do I want to earn?
• What do my sales need to look like to reach my ideal take-home pay?
• How will I cover the expenses of my business?

A plan is not set in stone and allows for adjustments as situations arise – but should be thoroughly devised enough to help you overcome foreseeable challenges like identifying leads and finding funding money to get started.

How to Start

Executive summary.

The executive summary of a real estate business plan establishes your hopes and dreams, a broad overview of how you plan to accomplish them, and highlights from the research used to support your decisions.

It should identify who your potential clients are, the areas you plan to focus on, and any potential sales opportunities (for example, the average house in this area is $450k). If there are any competitive assessments, those are also important to note here.

In many ways, consider this your elevator pitch. Given 30 seconds, or the amount of time you were in an elevator with someone, how would you describe your ability to  be profitable in real estate ?

Write a Detailed Business Description

If you’ve ever seen the show, “Shark Tank,” you’d be familiar with how the business owner stands in front of the investors and shares their story about why they should invest in their product. This is the detailed business description of your plan, where you tell what inspired you to get involved in real estate.

The description will highlight the opportunity and how you plan to make the most of it, while answering ‘who, what, when, where, how, and why’. Who is your prospective client? What makes you different and what is your client looking for? When are they typically looking to buy or sell their property? How do they typically start their search or process of selling their home?  Questions like these  will help shape your detailed business description to answer questions that you might not think about at first.

Perform a SWOT Analysis

If you’re unfamiliar with the term “SWOT”, it stands for (S)trengths, (W)eaknesses, (O)pportunities, (T)hreats. When applying a SWOT analysis to writing a real estate business plan, the coined term helps you identify some of the core questions that arise when planning.

Strengths address what makes you different and a better choice than your competition. Will you be more knowledgeable? Have you lived in the area you’re targeting your whole life? Are you a well-known member of the area who already has created a personal brand that will go far in real estate?

Weaknesses address the exact opposite. What things are you lacking? What things do others do better? Naturally, if you’re breaking into real estate, one of the first things you’d note is experience. Having multiple weaknesses isn’t a  bad  thing. It means you’ve identified potential issues and how to overcome them. For example, a new agent with experienced coaches can quickly overcome the example weakness.

Creating a Strategic Real Estate Business Plan

Defining your marketing strategy.

As much as you would like to be the perfect fit for all clients, the reality is that you are going to have a specific type of client that’s going to work the best with you. Maybe it’s someone from a specific area of town, first-time homebuyers, those using specific types of financing options, or those in the Armed Forces.

Identifying your market niche isn’t going to limit you to a specific clientele, but it’s going to direct your marketing and branding so that you’re not throwing lots of things and hoping that something sticks. This means saving time and money by directing your marketing efforts to the most meaningful ways, giving you the biggest bang for your buck.

Understanding the marketing strategy aspect of your real estate business plan will help you know who your target is, what their defining characteristics are, what services they are seeking, and help you understand how to grow those specific relationships.

Understanding  how you will generate leads  is incredibly important in developing your plan. If you don’t have leads, you won’t have sales — which means you won’t make money. Because of the nature of the business, you’ll need to understand how prospective clients start the process (which is usually through looking at things online).

Creating a Financial Plan

An important aspect of writing your business plan will always include money. Here you will identify your expenses, income, and estimate your sales goals. It’s important to create realistic and well-thought-out measurements in this section, to understand how your plan will come together.

When looking at your expenses, consider all things that will change for you on a licensing, personal, and business level. Licensing may seem self-explanatory, but ongoing education, covering multiple states, and other things might pop up. Personal expenses are also easily overlooked — will you need to buy different clothes, will a new smartphone be important to your work, and will your cost of gas rise? Business expenses are things like your broker fees, advertising costs, and other things often charged directly from your office.

A true financial plan is not a rough collection of estimates or guesstimates. It’s a close look at the reality of the costs you will be facing when you choose to start on the endeavor, and a true understanding of what it will take to achieve your goals. One of the basic goals you will look at financially is the ability of real estate to keep you economically profitable in consideration of your time and resources.

Analyze Your Local Competition

In-depth research into your local competition will help you beyond your SWOT analysis. When you’re looking at other offices that might be competing with you, consider what sets you apart and makes you different. Also,  use this competitive insight to grow your brand  and sharpen the services that you offer to clients.

For example, if your focus is on first-time homebuyers, are there any competitors that also have this focus? What do they do that seems to work? What can you offer that they don’t? There are generally four areas that will set you apart in regards to your competition; the product (your brand and focus), the price (your commission and price you seek for your clients), the place (your ideal market you’ve chosen to focus on), and promotion (meaning the way you’ll choose to market to generate leads).

Understand Your Ideal Customer

Understanding your customer is critical in writing a real estate business plan. Without that important link, you won’t meet your goals, your marketing dollars will be wasted, and your time will be spent without result.

The important things to know about your customer are:

• How do you reach them? Will they respond better to emails, texts, or calls?
• What matters to your clients? Is it more space, interior luxury, or location?
• What brand does your client subscribe to? Will they value Walmart or Whole Foods more?
• What matters most to your prospective buyer? Is it space, price, or something else?
• What is your ideal demographic? This is age, sex, etc.

Having a firm grasp on these important things will help you develop your plan so that you can speak to what your market research is telling you. Perhaps your opportunity is in selling new homes in an up-and-coming area, or to military families who have been given new orders near a base. Referrals and leads will always attract outside of your ideal mindset, but this will help you focus your efforts.

Implementing Action Plans

An action plan is a carefully considered set of steps to take in  achieving a specific goal . For example, if your goal is to get ten new leads a month, an action plan will help you get there. An action plan establishes a clear goal and the different things that need to be done to reach your objective.

You might have different action plans for marketing, closing sales, ongoing education and personal development, social media goals, etc. All of these individual action plans will help carry your real estate business plan to fruition.

Evaluating and Revising Your Plan

Your business plan is sure to be a living document as time goes on. With a constantly evolving real estate market, it is critical to stay up to date with the latest news – not only for the industry, but also for the markets you specialize in. As you continue to meet and shake hands with individuals, new doors will open, offering you opportunities that you probably didn’t consider when you originally developed your plan.

For example, maybe you’ve met a developer who’s asked you to help list their properties. What you learn from your clients will be equally important to your plan – if things don’t matter, save time and resources by removing them. Additionally, if there are things missing (like virtual open houses, alternative social media focuses, etc), find a way to incorporate them into your plan.

There’s something to be said for pulling from the experience of others, and  having an experienced real estate coach look over and help develop your real estate business plan is a great way to jump past the typical pitfalls new agents face.  A new agent starting out , dreams of the financial freedom to spend more time with their family and friends. Skipping over the learning curve by having an experienced professional will only help you achieve your goals faster.

10 Things Your Real Estate Business Plan Needs (FREE Template)

A real estate agent business plan is essential for success in today’s competitive market. It helps you set clear goals, define your vision, and outline the steps to achieve short-term and long-term objectives. As a real estate professional, having a well-crafted business plan can be the difference between being a top producer and struggling to make ends meet.

In your business plan, you’ll want to start by creating a vision statement that outlines the purpose of your real estate business and reflects your values. Setting firm goals will help you stay accountable and focused, allowing you to adapt to market changes or growth and remember that your business plan should be fluid and up-to-date to stay aligned with your ultimate objectives.

Your real estate agent business plan should be thorough, covering various aspects such as market analysis, organization structure, and marketing strategies. By having a comprehensive plan, you’ll be better equipped to navigate the challenges and seize the opportunities that come your way, ensuring your real estate business flourishes.

Understanding Your Target Market

Identifying your ideal client.

Understanding your target market is crucial to establish a successful real estate business plan. Begin by identifying your ideal client. Consider factors that may define your target clients, such as age, income level, family status, and property preferences. Reflect on your strengths as an agent and which clients you connect best with. This will help you focus your marketing efforts and create tailored strategies for your target audience.

Market Segmentation

Market segmentation divides your target market into smaller, more specific groups based on shared characteristics. In real estate, you can segment your market into categories such as:

• First-time homebuyers
• Empty nesters

By segmenting your market, you can tailor your services and communication strategies according to the unique needs of each group. This will lead to more effective marketing efforts and a better understanding of your potential clientele.

Analyzing Local Market Trends and Opportunities

Gather data on your local real estate market to identify trends and opportunities for your business. Analyze factors like:

• Market growth
• Market saturation
• Local property values
• Employment rates
• Infrastructure development
• Population demographics

By analyzing local market trends, you can identify areas with potential growth or areas that are becoming overly saturated. Use this information to adapt your services and expertise to market conditions, helping you stand out among competitors and position yourself as an expert in your niche.

Remember, a comprehensive understanding of your target market is essential for shaping your real estate agent business plan. By identifying your ideal clients, segmenting the market, and analyzing local market trends and opportunities, you’ll be better equipped to create tailored marketing strategies and make informed business decisions. This will ultimately contribute to the success and growth of your real estate business.

Lead Generation Strategies

Building an online presence.

To create a robust lead generation plan, build a strong online presence. A real estate agent must have a well-designed and user-friendly website to capture leads. Keep these factors in mind:

• Make sure your website reflects your branding and expertise
• Optimize your site for search engines to enhance its visibility in search results
• Include clear calls-to-action (CTAs), so potential clients can easily contact you
• Utilize high-quality images and videos to showcase properties
• Share helpful and informative content through a blog or resources section

You can also leverage social media channels to expand your reach and showcase your expertise in the industry. Focus on the platforms most relevant to your target audience and share valuable content related to real estate, local events, or home improvement tips.

Networking and Referrals

Building a strong professional network is essential for generating quality leads. Here are some strategies to boost your referral pipeline:

• Attend networking events, conferences, or workshops in your area. Engage with professionals in real estate or related industries
• Establish relationships with local businesses and community organizations
• Hold open houses or host educational seminars to engage potential clients in person
• Develop relationships with past clients and ensure you stay top of mind so they recommend you to their connections

Additionally, create a referral program that rewards clients and other referrers for sharing your services with their network. This will incentivize them to talk about you and help expand your reach.

Traditional Marketing Methods

Despite the increasing importance of digital marketing, traditional methods still have their place in generating leads for real estate agents:

• Send direct mail campaigns, like newsletters or postcards, to targeted neighborhoods, highlighting your strengths and successes
• Advertise in local print media, such as newspapers or specialized real estate publications
• List your services and properties in industry-specific directories, both online and offline
• Design and distribute eye-catching flyers, brochures, and business cards
• Participate in community events or sponsor local charities to enhance your company’s reputation and visibility

Make sure to keep track of the effectiveness of each lead generation method and evaluate their strengths and weaknesses. This will help refine and improve your overall marketing strategy and ensure you invest resources into the most productive channels.

Lead Conversion Techniques

Building rapport and trust.

To build rapport and trust, focus on the following:

• Be genuine and authentic with your prospects, showcasing your expertise and knowledge.
• Listen actively, taking the time to understand their concerns and needs.
• Display empathy towards their situation, offering tailored solutions for their specific problems.
• Stay engaged through the entire process, from the first interaction to closing.

Qualifying Leads

When it comes to qualifying leads:

• Ask open-ended questions to gauge their needs, timeline, and motivation for buying or selling
• Inquire about their financial situation and any potential barriers they may have
• Learn more about their preferred neighborhoods, housing type, and other preferences
• Prioritize leads based on their level of interest and readiness to move forward

Effective Communication and Follow-Up Strategies

For better communication and follow-up:

• Establish a consistent schedule for checking in on leads, such as every few days or weekly
• Personalize your communication, tailoring messages to each lead’s unique situation and preferences
• Practice active listening and respond thoughtfully to their questions or concerns
• Utilize several communication channels, including email, phone calls, text messages, and social media

Utilizing CRM Systems for Lead Management

Leveraging CRM systems can help you organize and optimize your lead management process:

• Track important lead information and interaction history in a centralized location
• Set reminders for follow-up tasks, appointments, or important milestones
• Analyze your leads’ behavior to understand their needs better and provide personalized service
• Create targeted marketing campaigns to engage your leads and nurture them toward conversion

By implementing these techniques and focusing on leads, marketing strategies, and communication, you’ll be well on your way to creating a thriving real estate agent business.

Closing Deals and Earning Commissions

Negotiation tactics.

When closing deals, it’s crucial to employ effective negotiation tactics to help both you and your client reach a favorable outcome. Some negotiation tactics include:

• Understanding the market: Know the local market trends and use this information when discussing price adjustments or concessions.
• Compromise: Find common ground and offer reasonable solutions to meet both parties’ needs.
• Leverage: Use your expertise in the real estate industry to highlight your client’s strengths and make convincing arguments.

Handling Objections and Overcoming Challenges

As a real estate agent, you’ll encounter objections and challenges in closing deals. To address them efficiently, consider the following points:

• Listen to the client’s concerns and empathize with their situation.
• Identify the objection: Determine the root cause of the objection and respond with a compelling solution.
• Maintain professionalism: Stay calm and composed, avoiding confrontational behavior.

Preparing and Presenting Offers

Presenting a well-prepared offer is vital to increasing the chances of closing a deal. Keep in mind:

• Research: Analyze comparable properties in the area to establish a competitive price for the offer.
• Documentation: Ensure that all necessary documents, such as pre-approval letters and proof of funds, are in order.
• Presentation: Employ clear and concise communication when presenting the offer, highlighting its benefits to the seller.

Managing the Transaction Process and Paperwork

Effectively managing the transaction process and paperwork helps keep the deal on track, which includes:

• Organization: Maintain an organized system for tracking important deadlines and required documents.
• Communication: Regularly update all parties involved in the transaction, ensuring they know the progress and address any concerns.
• Attention to detail: Ensure all forms, contracts, and other documents are accurate and complete.

By successfully closing deals, you’ll earn commissions based on your agreed split with your broker. For instance, if you close a deal worth $350,000 with a 6% commission rate, the gross commission income will be $21,000. If your commission split with your broker is 70/30, you’ll earn $14,700 while your broker receives $6,300. Utilizing the strategies discussed in this section will help you maximize your commission income and prove beneficial to your real estate business plan.

Client Retention and Building Repeat Business

Maintaining client relationships after closing.

Building lasting relationships with your clients is essential for repeat business and referrals. After closing a deal, continue to provide value by offering support with any post-closing issues, such as paperwork or maintenance concerns. Keep in touch with your clients and remember important milestones, such as anniversaries or birthdays. Show appreciation for their trust in you by sending thoughtful gifts or cards or simply checking in periodically.

Asking for Referrals and Testimonials

Word-of-mouth marketing is an incredibly powerful tool in the real estate industry. Encourage your satisfied clients to share their positive experiences with friends and family. To achieve this, be proactive in asking for testimonials and reviews, which you can later showcase on your website, social media, and other marketing materials. Here are some strategies to obtain them:

• Reach out via email or phone, and kindly request a testimonial or referral
• Provide a simple template to make it easy for clients to write a review
• Offer incentives, such as discounts on future services or gift cards, to show gratitude for their time and effort

Staying Top-of-Mind Through Regular Communication and Updates

Establish regular communication with your past clients to stay top-of-mind and generate repeat business. Keep them informed about the latest market trends, neighborhood developments, or listings that interest them. Here are some communication tactics you can employ:

• Send personalized monthly or quarterly e-newsletters
• Share relevant content, such as articles or videos, on your social media platforms
• Organize events, like client appreciation parties or educational seminars, to maintain connections and foster new ones

Maintaining client relationships, requesting referrals, and staying top-of-mind through regular updates will strengthen your real estate business with repeat clients and new prospects. Remember, satisfied customers are the key to long-term success in the real estate industry.

Measuring Success and Adjusting Your Strategies

Setting goals and key performance indicators (kpis).

To measure the success of your real estate agent business plan, start by setting SMART goals (Specific, Measurable, Achievable, Relevant, and Time-bound). These can serve as benchmarks for success and provide direction on areas to focus your efforts. Consider setting goals for various aspects of your business, such as sales volume, new client acquisition, and customer satisfaction.

In addition to your goals, establish key performance indicators (KPIs) to track your progress. KPIs are quantifiable metrics that help you evaluate the effectiveness of your strategies. Examples of KPIs for a real estate agent business plan include:

• Number of new leads generated per month
• The conversion rate of leads to clients
• Average days on market for properties
• Percentage of listings sold

Tracking and Analyzing Results

With your goals and KPIs established, continually collect and analyze data to track your progress. Regularly monitoring your results allows you to identify trends, spot potential problems, and evaluate the effectiveness of your marketing efforts. Some methods to track your data include:

• Using a CRM system to manage client relationships and interactions
• Employing analytics tools to evaluate the success of digital marketing campaigns
• Conducting a SWOT analysis (Strengths, Weaknesses, Opportunities, Threats) to identify areas where you excel or need improvement

Pay close attention to competitor performance and market trends to better understand how your strategies compare and identify any gaps you may need to address.

Adapting and Optimizing Your Strategies Based on Data

Once you’ve gathered and analyzed your data, use insights to adapt and optimize your strategies. Make data-driven decisions to improve your marketing efforts, streamline processes, and better allocate resources. Some steps you can take include:

• Adjusting your marketing budget and tactics based on your marketing ROI
• Revisiting your goals and KPIs to ensure they still align with your overall business objectives
• Fine-tuning your pricing strategies or the type of properties you focus on to meet market demand better

Maintaining a proactive approach to adjusting your strategies will keep your business plan agile and responsive to the changing real estate market. This will go a long way in helping you achieve the success you envision for your real estate agent business.

Time Management and Organization

Prioritizing tasks and setting a daily schedule.

In your real estate agent business plan, it’s crucial to have a time management and organization strategy. Start by prioritizing tasks that align with your [business goals]. Break down tasks into daily, weekly, and monthly goals. Then, create a daily schedule following the block scheduling method:

• List your key tasks for the day.
• Assign specific time blocks for each task.
• Stick to the schedule and avoid multitasking.

You’ll notice increased productivity and improved time management with this approach.

Using Productivity Tools and Apps

Take advantage of productivity tools and apps to help you stay organized and manage your time efficiently. Some popular tools for real estate agents include:

• Calendars: Apps like Google Calendar or Outlook can help schedule appointments and manage deadlines.
• Task Managers: Utilize tools like Trello, Asana, or Todoist to manage your projects and collaborate with your team.
• Time Tracking: Apps such as Toggl or Harvest provide insights into your work habits, helping you identify areas for improvement.

Remember to limit the number of tools you use to avoid digital clutter and duplicate information.

Delegating and Outsourcing Tasks When Necessary

As a real estate agent, delegating and outsourcing non-core tasks is essential to focus on your primary responsibilities. Here are some tasks you can consider delegating:

Identify areas where your expertise may not be as strong or where your time can be better spent, and consider outsourcing those tasks to professionals. This approach will help you manage your workload and improve the quality of your services.

Ongoing Education and Professional Development

Staying up-to-date with industry trends and changes.

To stay competitive in the real estate market, you must keep up with industry trends and changes. By monitoring resources like the National Association of Realtors (NAR), California Association of Realtors (CAR), and multiple listing services (MLS), you can stay informed about the latest developments in your field. Set aside time to read industry publications, attend webinars, listen to podcasts, and follow industry-leading professionals on social media.

Pursuing Relevant Certifications and Designations

Continuing education is crucial for staying current in the fast-paced real estate industry. Pursue relevant certifications and designations to add credibility and value to your practice. Organizations like NAR and CAR offer various designations demonstrating your expertise and commitment to professionalism to clients and colleagues.

Examples of real estate certifications and designations include:

• Accredited Buyer’s Representative (ABR)
• Certified Residential Specialist (CRS)
• Green Designation (Green)
• Seniors Real Estate Specialist (SRES)

To obtain these certifications, you must complete specific coursework, pass exams, and maintain membership in the relevant organizations.

Participating in Networking and Learning Events

Engaging in networking and learning events within the real estate community can help you build relationships, share ideas, and learn from the experiences of others. Attend conferences, workshops, and local meetups relevant to your niche, region, or areas of interest. Not only will this enhance your industry knowledge and skills, but it can also be an opportunity to form valuable connections that will benefit your business growth.

In summary, staying up-to-date with industry trends, pursuing certifications and designations, and participating in networking events can help you maintain and develop your skills as a real estate professional. Committing to continuous learning and professional development is essential to ensure your long-term success in the real estate business.

A well-structured business plan is essential for success as a new real estate agent. With a solid plan, you can set your goals, identify your target market, and analyze your competition. A comprehensive business plan lets you plan your marketing strategies, map your operating expenses, and create revenue projections.

To get started, consider using a business plan template tailored to real estate agents’ needs. This will give you a framework to follow as you develop your plan.

Developing a business plan is just the first step in the process. You need to take action and implement your strategies to realize your goals and achieve success. Revise your plan regularly, adapting and updating it as needed. This will ensure you stay on track with your goals and remain competitive in the ever-changing real estate market.

As a new real estate agent, taking bold steps toward your objectives may feel intimidating. However, trust your plan, apply your outlined strategies, and stay persistent. Your dedication will pay off in the long run.

Starting a career in real estate can be challenging, but you don’t have to face the journey alone. There are numerous resources and support networks available to help new real estate agents excel:

• Professional networks : Join local real estate associations and online forums to connect with experienced agents, ask questions, and expand your knowledge.
• Mentors : Seek accomplished real estate agents who can offer guidance, share valuable experiences, and provide personalized advice.
• Training and education : Keep your skills fresh by attending workshops, participating in webinars, and pursuing continuing education courses relevant to your field.

By leveraging these resources and committing to your business plan, you are setting yourself up for a successful career in real estate. Don’t forget to celebrate your achievements along the way and take pride in your progress. Now is the time to take action; you will surely achieve your goals with determination and hard work.

Would You Like To Partner With Me?

I’ve helped hundreds of real estate agents, team leaders, & brokers all over the country increase their sales, online presence, and create scalable systems. I would love the opportunity to work with you. Together , we can make this year your best yet!

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Real Estate Agent Business Plan Template

Written by Dave Lavinsky

Business Plan Outline

• Real Estate Agent Business Plan Home
• 1. Executive Summary
• 2. Company Overview
• 3. Industry Analysis
• 4. Customer Analysis
• 5. Competitive Analysis
• 6. Marketing Plan
• 7. Operations Plan
• 8. Management Team
• 9. Financial Plan

Real Estate Agent Business Plan & Example

You’ve come to the right place to create your real estate agent business plan.

We have helped over 100,000 entrepreneurs and business owners create business plans and many have used them to start or grow their real estate agencies.

Real Estate Business Plan Example

Below are links to each section of your real estate agent business plan template:

• Executive Summary – The Executive Summary is the most important part of your business plan. It is a brief overview of your real estate agency, its products and services, niche market opportunity, and competitive advantage.
• Company Overview – In the Company Overview, you will provide a detailed description of your real estate agency, its products and services, company structure, management team, and Founders.
• Industry Analysis – The Industry Analysis is a critical part of your real estate business plan. Here, you will provide an in-depth analysis of the industry in which your real estate agency operates. You will cover topics such as industry trends, major players in the industry, market size and growth, and profitability.
• Customer Analysis – In the Customer Analysis, you will identify your target market and provide insights into their needs and buying habits. You will also segment your target market and discuss your marketing strategy for reaching them.
• Competitive Analysis – In the Competitive Analysis, you will identify your competition and provide insights into their strengths and weaknesses. You will also discuss your competitive advantage and how you plan to stay ahead of the competition.
• Marketing Plan – In the Marketing Plan, you will discuss your marketing strategy and tactics. You will also provide a sales forecast and budget for your marketing activities.
• Operations Plan – In the Operations Plan, you will discuss your business’s day-to-day operations. You will also provide business milestones that you plan to achieve and a budget for your operational expenses.
• Management Team – In the Management Team section, you will provide an overview of your management team and their experience in the real estate industry.
• Financial Plan – In the Financial Plan, you will provide a three-year financial projection for your real estate agency. This will include your income statement, balance sheet, and cash flow statement.

Next Section: Executive Summary >

Real Estate Business Plan FAQs

What is a real estate business plan.

A real estate business plan is a plan to start and/or grow your real estate business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.

You can  easily complete your real estate business plan using our Real Estate Business Plan Template here .

What Are the Main Types of Real Estate Businesses?

The most commonly known type of real estate business is residential real estate sales. This involves the sale and purchase of homes. The other type of real estate business is commercial real estate, where businesses focus on commercial properties.  Other types are real estate investors, lease companies and property management.

What Are the Main Sources of Revenues and Expenses for a Real Estate Business?

The main source of revenue for a real estate business are commissions earned from client real estate sales and rentals fees. Other revenue generated in this business are profit income, interest income and dividend income.

The key expenses for property management companies are salaries and wages, advertising, travel and supply costs for each transaction.

How Do You Get Funding for Your Real Estate Business Plan?

Real estate businesses are typically funded through small business loans, personal savings and credit card financing.

What are the Steps To Start a Real Estate Business?

Starting a real estate business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.

1. Develop A Real Estate Business Plan - The first step in starting a business is to create a detailed real estate business plan that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast.  

2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your real estate business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your real estate business is in compliance with local laws.

3. Register Your Real Estate Business - Once you have chosen a legal structure, the next step is to register your real estate business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws. 

4. Identify Financing Options - It’s likely that you’ll need some capital to start your real estate business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms. 

5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations. 

6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events. 

7. Acquire Necessary Real Estate Equipment & Supplies - In order to start your real estate business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation. 

8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your real estate business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising. 

Learn more about how to start a successful real estate business:

• How to Start a Real Estate Business

Where Can I Get a Real Estate Business Plan PDF?

You can download our free real estate business plan template PDF here . This is a sample real estate business plan template you can use in PDF format.

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How to Create a New Real Estate Agent Business Plan (A Comprehensive Guide)

Last updated on November 14, 2021

Quick note! RealEstateLicenseTraining is partnered with the best online real estate schools. When you sign up using our links, we may get a small affiliate commission. Read how we conduct our reviews here . 

Launching a real estate career without a plan is like going to war without a weapon. 

Having a plan in place, on the other hand, prepares you for the challenges ahead and helps you make wise decisions.

Think of your real estate business plan as a roadmap to your success. Without it, you may be lost and unable to set a clear direction for achieving your objectives. 

But how do you create a new real estate agent business plan? 

Here, we will give you a comprehensive guide to creating a new real estate agent business plan. We’ll also mention the importance of one. 

So let’s get straight into it! 

Why Do You Need A Real Estate Business Plan?

A plan is not always a guarantee for success, but it serves as a tool to help guide your decisions. It articulates your vision, provides clarity on different aspects of your business, reduces risks, and identifies gaps in your strategies. 

Most importantly, a business plan reminds you of your whys and goals, as well as motivates you to work on them.

So you can see why it’s important to have a business plan. 

The 7 Steps to Creating a New Real Estate Agent Business Plan

These are the steps to create a new real estate agent business plan:

• Write an executive summary
• Write a mission statement
• List your SMART goals
• Perform a SWOT analysis
• Know your target clients and competitors
• Develop marketing and lead generation strategies
• Evaluate your business plan

Let’s get into the details. 

1. Write an executive summary

An executive summary briefly outlines your real estate purpose and goals. It is usually one to two pages long, clear, and concise enough to give the reader a quick grasp of the elements of your business plan. Its contents include but are not limited to the following:

• A short description of your real estate properties
• A description of your target market
• A description of your competitors and the advantages you have over them
• A financial summary
• An overview of your business’s growth potential

2. Write a mission statement

Your mission statement should support your real estate goals. If you follow it, you will achieve your vision. It should be short and specific and must include the following:

• What you can offer potential buyers
• The overall value of your service
• Who will benefit from your service

3. List your SMART Goals

SMART stands for specific, measurable, attainable, realistic, and timely. Setting goals with these characteristics will encourage you to stick to them until you reach them. 

This is an example of a SMART goal: “Sell 20 houses in the Bay Area in the first quarter.”

4. Perform a SWOT Analysis

SWOT stands for strengths, weaknesses, opportunities, and threats. SWOT analysis is a framework that evaluates your competitive position based on the four factors. It is a helpful tool in developing a strategic plan. 

Strengths and weaknesses pertain to internal factors, whereas opportunities and threats are external. 

Below are a few examples:

5. Know your target clients and competitors

Identifying your market niche is an essential part of your real estate business plan. Knowing your target clients will help you build realistic and feasible marketing plans. Determining a specific audience also lets you save money, time, and effort.

Below are some questions you need to ask yourself when identifying your target market:

• What is the demographic of your ideal clients? (Age, location, and status.) 
• What do they do for a living, and what is their household income?
• What are their defining characteristics?
• What are their preferred modes of communication? (Phone call, e-mail, text message, or via an instant messaging application)
• Which businesses do they currently use for their real estate transactions? Who are your competitors?

Once you know your competition, It is worth asking yourself these questions:

• What are your competitors doing better?
• What channels do they use for their marketing campaigns? 
• How well do these channels work for them?
• Are there any methods your competitors have not tapped that may potentially work to your advantage?   

Knowing your competition will allow you to strategize plans on how you can outperform them.

6. Develop marketing and lead-generation strategies

The next step is developing your strategies. 

Create a detailed action plan on how you will promote yourself to your target clients. 

They can be a combination of traditional and contemporary methods. Also, you can devise a strategy based on what you’ve previously learned from studying your competitors.  

For example, when building an online presence, think of the lead-generation techniques that you plan to integrate into your website or social media page. 

Will you be focusing on outbound marketing? Or, will you take on a more organic approach, such as SEO (search engine optimization)?

Your lead generation methods may change, but including initial strategies in your business plan will help you identify which ones work and which ones don’t.

7. Evaluate your business plan

Finally, your business plan shouldn’t be static. The industry evolves, the market fluctuates, and so should your plan. It should stay relevant and be able to adapt to constant changes. 

Now that you know how to create a new real estate agent business plan, it’s time to get down to writing it. Any more time you spend without a concrete business plan could mean increased risks and wasted opportunities. 

Don’t drag it out. The sooner you finish your business plan, the better. Remember, the old saying holds true; if you fail to plan, you plan to fail.   

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Blog Business 5 Real Estate Business Plan Examples & How to Create One?

5 Real Estate Business Plan Examples & How to Create One?

Written by: Danesh Ramuthi Nov 28, 2023

Crafting a business plan is essential for any business and the real estate sector is no exception. In real estate, a comprehensive business plan serves as a roadmap, delineating a clear path towards business growth. 

It guides owners, agents and brokers through various critical aspects such as identifying target markets, devising effective marketing strategies, planning finances and managing client relationships.

For real estate businesses, a well-written plan is crucial in attracting potential investors, showcasing the company’s mission statement, business model and long-term income goals.

So, how can you write one?

Leveraging tools like Venngage Business Plan Make r with their Business Plan Templates to create your own real estate business plan can be transformative.

They offer a lot of real estate business plan examples and templates, streamlining the process of crafting a comprehensive plan.

Click to jump ahead: 

• 5 real estate business plan examples

How to write a real estate business plan?

• Wrapping Up

5 Real estate business plan examples

As I have said before, a well-crafted business plan is a key to success. Whether you’re a seasoned agent or just starting out, examples of effective real estate business plans can offer invaluable insights.

These examples showcase a range of strategies and approaches tailored to various aspects of the real estate market. They serve as guides to structuring a plan that addresses key components like market analysis, marketing strategies, financial planning and client management, ensuring a solid foundation for any real estate venture.

Real estate business plan example

There are various elements in a real estate business plan that must be integrated. Incorporating these elements into a real estate business plan ensures a comprehensive approach to launching and growing a successful real estate business. 

What are they?

• Executive summary: The executive summary is a concise overview of the real estate business plan. It highlights the mission statement, outlines the business goals and provides a snapshot of the overall strategy. 
• Company overview: An overview on the history and structure of the real estate business. It includes the company’s mission and vision statements, information about the founding team and the legal structure of the business. 
• Service: Here, the business plan details the specific services offered by the real estate agency. This could range from residential property sales and leasing to commercial real estate services. The section should clearly articulate how these services meet the needs of the target client and how they stand out from competitors.
• Strategies: A very crucial part of the plan outlines the strategies for achieving business goals. It covers marketing strategies to generate leads, pricing strategies for services, and tactics for effective client relationship management. Strategies for navigating market shifts, identifying key market trends and leveraging online resources for property listings and real estate listing presentations to help with lead generation are also included.
• Financial plan: The financial plan is a comprehensive section detailing the financial projections of the business. It includes income statements, cash flow statements, break-even analysis and financial goals. Besides, a financial plan section also outlines how resources will be allocated to different areas of the business and the approach to managing the financial aspects of the real estate market, such as average sales price and housing market trends.

Read Also: 7 Best Business Plan Software for 2023

Real estate investment business plan example

A real estate investment business plan is a comprehensive blueprint that outlines the goals and strategies of a real estate investment venture. It serves as a roadmap, ensuring that all facets of real estate investment are meticulously considered.

Creating a business plan for real estate investment is a critical step for any investor, regardless of their experience level Typically, these plans span one to five years, offering a detailed strategy for future company objectives and the steps required to achieve them.

Key components:

• Executive summary: Snapshot of the business, outlining its mission statement, target market, and core strategies. It should be compelling enough to attract potential investors and partners.
• Market analysis: A thorough analysis of the real estate market, including current trends, average sales prices and potential market shifts.
• Financial projections: Detailed financial plans, including income statements, cash flow analysis, and break-even analysis.
• Strategy & implementation: Outlines how the business plans to achieve its goals. This includes marketing efforts to generate leads, pricing strategies and client relationship management techniques.
• Legal structure & resource allocation: Details the legal structure of the business and how resources will be allocated across various operations, including property acquisitions, renovations and management.

Real estate agent business plan example

A real estate agent business plan is a strategic document that outlines the operations and goals of a real estate agent or agency. It is a crucial tool for communicating with potential lenders, partners or shareholders about the nature of the business and its potential for profitability.

A well-crafted real estate agent business plan will include

• Where you are today: A clear understanding of your current position in the market, including strengths, weaknesses and market standing.
• Where you aim to be: Sets specific, measurable goals for future growth, whether it’s expanding the client base, entering new markets or increasing sales.
• How can you get there: Outlines the strategies and action plans to achieve these goals, including marketing campaigns, client acquisition strategies and business development initiatives.
• Measuring your performance: Defines the key performance indicators (KPIs) and metrics to assess progress towards the set goals, such as sales figures, client satisfaction rates and market share.
• Course correction: Establishes a process for regular review and adjustment of the plan, ensuring flexibility to adapt to market changes, shifts in client needs and other external factors.

For real estate agents, a comprehensive business plan is not just a roadmap to success; it is a dynamic tool that keeps them accountable and adaptable to market changes.

Realtor business plan example

A realtor business plan is a comprehensive document that outlines the strategic direction and goals of a real estate business. It’s an essential tool for realtors looking to either launch or expand their business in the competitive real estate market. The plan typically includes details about the company’s mission, objectives, target market and strategies for achieving its goals.

Benefits of a realtor business plan and applications:

• For launching or expanding businesses: The plan helps real estate agents to structure their approach to entering new markets or growing in existing ones, providing a clear path to follow.
• Securing loans and investments: A well-drafted business plan is crucial for securing financing for real estate projects, such as purchasing new properties or renovating existing ones.
• Guideline for goal achievement: The plan serves as a guideline to stay on track with sales and profitability goals, allowing realtors to make informed decisions and adjust strategies as needed.
• Valuable for real estate investors: Investors can use the template to evaluate potential real estate businesses and properties for purchase, ensuring they align with their investment goals.
• Improving business performance: By filling out a realtor business plan template , realtors can gain insights into the strengths and weaknesses of their business, using this information to enhance profitability and operational efficiency.

A realtor business plan is more than just a document; it’s a roadmap for success in the real estate industry. 

Writing a real estate business plan is a comprehensive process that involves several key steps. Here’s a detailed guide to help you craft an effective business plan :

• Tell your story : Start with a self-evaluation. Define who you are as a real estate agent, why you are in this business and what you do. Develop your mission statement, vision statement and an executive summary​​.
• Analyze your target real estate market : Focus on local market trends rather than national or state-wide levels. Examine general trends, market opportunities, saturations, and local competition. This step requires thorough research into the real estate market you plan to operate in​​.
• Identify your target client : After understanding your market, identify the niche you aim to serve and the type of clients you want to target. Create a client persona that reflects their specific needs and concerns​​.
• Conduct a SWOT analysis : Analyze your business’s Strengths, Weaknesses, Opportunities and Threats. This should reflect a combination of personal attributes and external market conditions​​​​.
• Establish your SMART goals : Set specific, measurable, attainable, realistic and timely goals. These goals could be financial, expansion-related or based on other business metrics​​​​.
• Create your financial plan : Account for all operating expenses, including marketing and lead generation costs. Calculate the number of transactions needed to meet your financial goals. Remember to separate personal and business finances​​.
• Revisit your business plan to monitor & evaluate : Treat your business plan as a living document. Plan periodic reviews (quarterly, semi-annually or annually) to check if your strategies are advancing you toward your goals​​​​.
• Defining your mission & vision : Include a clear mission and vision statement. Describe your business type, location, founding principles and what sets you apart from competitors​​.
• Creating a marketing plan : Develop a marketing plan that addresses the product, price, place and promotion of your services. Determine your pricing strategy, promotional methods and marketing channels​​.
• Forming a team : Ensure the cooperation of colleagues, supervisors and supervisees involved in your plan. Clarify their roles and how their participation will be evaluated​​.

Related: 15+ Business Plan Examples to Win Your Next Round of Funding

Wrapping up

The journey to a successful real estate venture is intricately linked to the quality and depth of your business plan. From understanding the nuances of the real estate market to setting strategic goals, a well-crafted business plan acts as the backbone of any thriving real estate business. Whether you’re developing a general real estate business plan, focusing on investment, working as an agent, or operating as a realtor, each plan type serves its unique purpose and addresses specific aspects of the real estate world.

The examples and insights provided in this article serve as a guide to help you navigate the complexities of the real estate industry. Remember, a real estate business plan is not a static document but a dynamic blueprint that evolves with your business and the ever-changing market trends.

Crafting a strategic real estate business plan is a crucial step towards achieving your business goals. So, start shaping your vision today with Venngage.

Explore venngage business plan maker & our business plan templates and begin your journey to a successful real estate business now!

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Real Estate Business Plan Template

Written by Dave Lavinsky

Real estate businesses come in a wide range of sizes and styles, from one person offices that handle a few homes in a handful of neighborhoods to enormous chains that cover both commercial and residential properties across the country. Many new real estate agents try to expand too much too soon, failing as the result of unsustainable growth. A written business plan will keep you on track and help you grow your real estate business in an organized way. In addition, if you plan to seek funding, investors and lenders will use your business plan to determine the level of risk.

Download our Ultimate Real Estate Business Plan Template here >

What is a Real Estate Business Plan?

Your business plan provides a snapshot of your real estate company as it currently exists, and lays out a road map for the next three to five years. It highlights your business goals, identifies potential challenges, and describes your strategies for overcoming adversity and meeting your goals. It is a living document that should be frequently updated as your real estate business grows and evolves.

Below is our general template for real estate business plans. We also have templates for specific types of real estate businesses as follows:

• Property Management Business Plan Template
• Real Estate Agent Business Plan
• Real Estate Development Business Plan
• Real Estate Investment Business Plan
• Rental Properties Business Plan

Why You Need a Business Plan Real Estate Business

If you’re looking to start a real estate business or grow your existing real estate business you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your real estate company in order to improve your chances of success. Your real estate business plan is a living document that should be updated annually as your company grows and changes.

Finish Your Business Plan Today!

General real estate business plan template.

Below is a template that will help you with how to write a real estate business plan. The plan should include the following 10 sections:

Executive Summary

Although it serves as the introduction to your business plan, your executive summary should be written last. The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of real estate business you are operating and the status. For example, are you a startup, do you have real estate agent business that you would like to grow, or are you operating a chain of real estate businesses?

Next, provide an overview of each of the subsequent sections of your plan. For example, give a brief overview of the real estate industry. Discuss the type of real estate business you are operating. Detail your direct competitors. Give an overview of your target customers. Provide a snapshot of your marketing plan. Identify the key members of your team. And offer an overview of your financial plan.  

Company Analysis

In your company analysis, you will detail the type of real estate business you are operating. For example, are you an existing real estate agent looking to launch your own company or are you an existing real estate brokerage looking to expand?

Describe the company’s founding, current stage of business, and legal structure. Highlight any past milestones, such as lining up key clients or hiring an agent with a proven track record. Elaborate on your unique qualifications, such as expertise in a currently underserved niche market and include a mission statement, if possible. Include your mission statement, key objectives and business goals.

Industry Analysis

In your industry analysis, you need to provide an overview of the real estate market. The real estate industry is incredibly large and diverse, but your analysis should focus on your specific segment of the market. Do you specialize in multifamily residential buildings? Single family homes? Office buildings? Small commercial properties? Figure out where your real estate company fits in, and then research the current trends and market projections that affect your niche. Create a detailed strategy for overcoming any obstacles that you uncover.

The following questions should be answered in the industry analysis section of your real estate business plan:

• How big is the real estate market (in dollars)?
• Is the market declining or increasing?
• Who are the key competitors in the market?
• Who are the key suppliers in the market?
• What trends are affecting the industry?
• What is the industry’s growth forecast over the next 5 – 10 years?
• What is the relevant market size? That is, how big is the potential market for your real estate business. You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.

Customer Analysis

Who are your potential clients? Are they first-time homebuyers? Upwardly mobile young professionals? Developers, speculators, or investors? What is important to them in a real estate agent? Do they require hand holding through the entire process, or are they savvy buyers that just want you to show them the properties that interest them? How do they decide on a particular property? Narrow down their demographics as closely as you can, and then figure out what their unique needs are and how you can fulfill them.

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Competitive Analysis

Your direct competitors are those real estate companies that fulfill the same needs for the same target market as yours. Your indirect competitors are real estate businesses that target a different market, or other companies that fulfill a different need for your target market. Describe each of your direct competitors individually, and talk about the things that set your real estate company apart. Categorize your indirect competitors as a group and talk about them as a whole.

For each such competitor, provide an overview of their businesses and document their strengths and weaknesses in a SWOT analysis. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as:  

Marketing Plan

A solid marketing plan is based on the four P’s: Product, Price, Promotion, and Place. Your marketing efforts should center around these four marketing strategies. The Product section describes the real estate you sell along with any other services you provide. Price will change according to the specifics of the property, but you can delineate your fees here. Promotion is your means of getting new business. Place is your physical office location, along with your web presence and the areas where you sell. Another category, Customer retention, refers to the ways you will build loyalty.

Employing a marketing strategy based on these four principles will allow you to generate leads for prospective clients.

Operations Plan

Your operations plan explains your methods for meeting the goals you set forth. Everyday short-term processes include all of the daily tasks involved in signing up clients, showing properties, and closing sales. Long-term processes are the ways you will meet your defined business goals, such as expanding into new markets or new types of properties.  

Management Team

The management team section highlights the backgrounds of the key members of your real estate team. Focus on those aspects that prove your team’s ability to build and run a successful company. A business mentor or advisor can help fill in any gaps, provided you can identify the specific ways that your advisor will influence your company’s growth. Be sure to highlight how many real estate agents will be on your team.  

Financial Plan

Investors and lenders heavily scrutinize the financial plan, but it is often the most challenging part of the business plan to write. Real estate is a fickle market, subject to changing whims and economic cycles. Yet the financial plan requires you to detail your specific business model and individual revenue streams by implementation timeline and relative importance, and disclose any sources of outside funding. You also need to summarize your past and future Income Statements, Cash Flow Statements, and Balance Sheets, based on key assumptions that must be both reasonable and verifiable based on an analysis of similar companies. You should also provide a solid exit strategy that shows your understanding of the market and your desire to capitalize on profitability.  

Your full financial projections should be attached in the appendix along with any other documents that support your claims, such as letters from key partners.  

Real Estate Business Plan Summary

Putting together a business plan for your real estate business is a worthwhile endeavor. If you follow the template above, by the time you are done, you will truly be an expert. You will really understand the real estate industry, your competition and your customers. You will have developed a marketing plan and will really understand what it takes to launch and grow a successful real estate business.

Download Our Real Estate Business Plan PDF

You can download our real estate business plan PDF here . This is a business plan template you can use in PDF format.

Real Estate Business Plan FAQs

What is the easiest way to complete my real estate business plan.

Growthink's Ultimate Real Estate Business Plan Template allows you to quickly and easily complete your Real Estate Business Plan.

Where Can I Download a Free Real Estate Business Plan PDF?

You can download our real estate business plan PDF template here . This is a business plan template you can use in PDF format.

This can be used for a commercial real estate business plan too.

Don’t you wish there was a faster, easier way to finish your Real Estate business plan?

OR, Let Us Develop Your Plan For You

Since 1999, Growthink has developed business plans for thousands of companies who have gone on to achieve tremendous success.   Click here to see how a Growthink business plan writer can create your business plan for you.

Other Helpful Business Plan Articles & Templates

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How to Write a Solid Real Estate Business Plan in 2024

March 13, 2024

If you want to grow your real estate business , then you’ll need to get clear on where you want to go and how you can get there.

Research from the Harvard Business Review indicates that entrepreneurs who create formal business plans are 16% more likely to achieve viability than those who don’t. Further studies also demonstrate that business planning can accelerate a firm’s growth by 30% , and the time invested in writing a business plan can significantly enhance the likelihood of success .

In this article, we’ll guide you through the critical elements of a strong real estate business plan, helping you create a unique strategy aligned with your company goals.

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Why every agent and broker should have a real estate business plan

A real estate business plan acts as a strategic blueprint for an agent, team, or brokerage, mapping out key facets, critical milestones, company goals, and the business’s overall financial health. A plan needs a clear vision and roadmap for how the company will achieve its goals and grow within its specific market.

Additionally, general business plans are pivotal in securing capital and compelling potential investors or partners. A great business plan can attract skilled employees and top-level talent, leading to further expansion and growth.

For an agent or a broker, a real estate business plan is essential for determining your identity in the luxury market and what you can offer clients. It helps you hone in on your ideal customer and allows you to assess the financial viability of your business easily. 

Your real estate business plan is a guide to your goals and a clear-cut strategy for how you can stand out from the competition, grow your business, and fulfill your overarching mission.

Real estate business plans: the basics

When constructing your real estate business plan, it’s best to keep things simple, manageable, and achievable. Focus on where you are now, where you want to go, and how you can reasonably get there.

Here are six critical elements of a straightforward real estate business plan:

• Executive summary:  The executive summary serves as a brief overview of who you are, your purpose, and your goals.
• Overview and objectives:  The overview and objectives section can vary somewhat based on your individual needs, but they should include your mission statement, your history, and your objectives.
• Market opportunities and competitive analysis:  Your business plan should outline where market conditions are ideal for the rapid growth of a business and what your competition is already doing in that space.
• SWOT analysis:  SWOT stands for Strengths, Weaknesses, Opportunities, and Threats and is a useful analytical tool for determining your strategic position.
• Marketing plan:  The marketing plan identifies and details how you will reach and attract your target audience.
• Financial plan:  A financial plan is a fairly straightforward snapshot of the economic health of your business.

Most business plans adhere to a timeframe of three to five years, though some are as short as one year, others as long as seven. Although everything in this article provides recommendations for a three to five-year plan, it’s worth looking beyond five years for future growth opportunities.

Creating your own real estate business plan 

Now that you know the main sections of your real estate business plan, let’s dive into exactly what goes into each element. 

Executive summary

A good summary is typically one to two pages (although one is optimal) and should include the following:

• Description of services
• Summary of objectives
• Brief market and competition snapshot (you’ll dive deeper into this later in your business plan)
• Capital or partnership requirements, if applicable

Your executive summary is the one part of your business plan you can recite from memory. There’s no fluff. Consider this your elevator pitch to sell your vision and convince others to join you on your mission.

Overview and objectives

Mission statement.

Your mission statement is why you do what you do—the guiding principles for your business. 

For example, here are two excellent real estate company mission statements:

• Compass : Our mission is to help everyone find their place in the world. Compass is building the first modern real estate platform, pairing the industry’s top talent with technology to make the search and sell experience intelligent and seamless.
• Sotheby’s Realty : Built on centuries of tradition and dedicated to innovation, the Sotheby’s International Realty brand artfully unites connoisseurs of life with their aspirations through a deeply connected global network of exceptional people.

Your history is just that—when you started, location, leadership, milestones, and notable services or specializations.

Objectives are your primary goals. A common technique for establishing your goals is through the “SMART” method, ensuring your goals are Specific, Measurable, Achievable, Relevant, and Time-bound.

Objectives that might cover the course of a five-year plan include:

• Rebrand the company website in 30 days.
• Establish a social media presence in 90 days.
• Close five transactions per month in year one and double transaction volume by year three.
• Double the size of the firm by year five.

Ensure your goals are targeted and realistic within your set time frame. 

More likely than not, your business will have multiple objectives simultaneously. Group them based on category and designate a team member who will be responsible for managing achievements, setting milestones, and assessing progress.

Market opportunities and competitive analysis

Understanding your market and your competition involves taking stock of the landscape’s size, demographics, demands, and trends.

Market opportunities

When determining your market opportunities in your business plan, consider the following questions: 

• What is the size and stability of the market?
• Is the market currently on an upward or downward trajectory?
• What are the current demographics of the market?
• What segment of the market do I want to target? 
• Is there a demand for a particular type of housing? 
• Are there more sellers than buyers, or vice versa? 

Also, pinpoint specific market circumstances that could significantly impact your business, like interest rate trends or local economic development. Be sure to document these insights in your plan as well. 

Competitive analysis

In many business plans, competitive analysis is worthy of its own standalone section. Regardless of how you present it, devote some space to your competition and thoroughly research what they currently do in the real estate market.

Include both immediate and secondary competitors, and note if the market is primed for new competitors in the future. Also, identify the risks and opportunities when comparing your niche market and services versus others vying for similar business. 

Remember to ask yourself:

• What do I offer clients that the competition does not? 
• Can I stand out in this market and generate revenue?
• How can I advertise myself to showcase these differences?

SWOT analysis

Through its matrix-like formatting, you can use data-backed facts to analyze your team’s strengths, weaknesses, opportunities, and threats in a visual way. Here are some questions you can ask yourself for each section:

• Is your brand recognizable?
• Do you have an in-house expert for each specialization within residential or commercial real estate (or both)? 
• Do you have an active pipeline of new leads ? 
• What is your unique selling proposition (USP)?
• Do you lack consistent social media or online content? 
• Is your brand relatively new or unrecognizable ?
• Are you missing out on lead-generation opportunities?
• Is your website engagement lacking?

Opportunities

• Has your team just branched out to a new area of real estate? 
• Is market demand growing in your area? 
• Have you uncovered a new source of referrals ?
• Are there any new teams in your niche with a USP similar to yours?
• Are mortgage rates rising enough to slow down demand?

By uncovering factors in each grid of the SWOT analysis matrix, you can identify areas that need immediate attention or capitalize on specific strengths.

Marketing plan

Creating a marketing plan is an exercise in understanding your ideal client and then molding a campaign that ensures you can target those customers. Here are a few key points to outline in your marketing plan:

Demographics

• Consider your ideal client persona, including age, location, income, and profession.
• Consider what attracts this ideal client. What are they looking for in properties? What are they avoiding?
• What type of neighborhoods, amenities, or lifestyle are they seeking?

Marketing channels

• Which platforms are your ideal clients engaging with the most? Which ones do your competitors frequently utilize?

Along with these aspects, consider how to position yourself better than your competitors to attract this client. Think about the benefits you can offer and how you can showcase this with a smart real estate marketing campaign .

Financial plan

A financial framework is a crucial aspect of your real estate business plan since it provides insight into the economic health of your business. It gives you a better idea of the valuation of your business, acts as a guide for your budget, and helps you set more realistic financial goals.  

Here are the elements of a financial plan that should be included:

Profit and loss statement

• This is also called an income statement or pro forma. This shows a company’s profitability (or loss) over a certain length of time.

Cash flow statement

• This statement provides an overview of your actual cash position.

Balance sheet

• A balance sheet shows where you stand regarding assets, liabilities, and equity at a specific point in time.

Operating budget

• An operating budget is a detailed view of your income and expenses, usually over 12 months. 

Break-even analysis

• This outlines the revenues necessary to cover all costs and your business’s potential to be profitable. 

Depending on your real estate business position or if you’re an individual broker or agent, you can simplify this area with just an operating budget and break-even analysis.

4 common mistakes agents make when creating a real estate business plan

1. thinking the business plan needs to be perfect.

Your real estate business plan will not be built overnight. You can still run a successful company while your business plan is being created. Instead of waiting to make a “perfect” business plan, follow our step-by-step guide to get started. Then, you can modify as you learn more about your client, your competition, and the trends in the market. 

2. Not having someone else review your business plan

Like any other business document, having a second pair of eyes review your real estate business plan is always helpful for typos or mistakes and for any glaring questions or inconsistencies. Be open to feedback from people, both in the industry and outside it—if someone is confused by an aspect of your plan, chances are they won’t be the only one. 

3. Not using the business plan to gain more clients

While your plan is useful for an overview of your business and its goals, don’t forget to use it as a guiding tool. For example, once you make your marketing plan, you’ll have a stronger idea of your ideal customer. So, be sure to use that information to create more targeted outreach efforts. This includes:

• Adjusting your marketing and advertising budget
• Creating a more targeted marketing campaign, including website, social media, and email
• Determining how to nurture non-specific outreach efforts such as referrals , SEO , and open houses
• Developing a data analytic strategy—how will you measure your marketing success and make changes if necessary?

4. Not coming back to the business plan 

Your real estate business plan is not a one-and-done proposition or something to be written, tossed in a drawer, and forgotten. 

Make time to periodically reevaluate your progress and see where you stand in reaching your goals. Once every 90 days is a good rule of thumb, but review more or less frequently as you see fit. And if you start hitting those goals early, take the time to make new ones.

Lastly, don’t be afraid to pivot if something isn’t working. Goals can change, so return to your business plan and modify it as your company ebbs and flows. 

Luxury Presence: your real estate business plan partner

With beautifully crafted websites, SEO strategists, and top marketing expertise, Luxury Presence is here to help you define your business and grow in the real estate market. Contact our team of experts today to refine your online presence and stand out from the competition.

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