Starting a real estate business isn’t for the faint of heart. There are no other industries that require you to make continuous cold calls and only close five or six deals a year if you’re lucky. According to studies, almost 90% of real estate agents fail within their first five years of working in the industry. However, if you have the strength, starting your own real estate business can be very lucrative. Here are four tips to get you started.
Craft Your Personal Plan
Before you look at setting your financial goals, it’s recommended that you understand what your entire life’s financial goals are. Making a commission is excellent, but everyone gets into the real estate business for something more significant than the standard commission. Regardless of where or when you think of your life’s goals, you do need to map them out. Here are some questions to consider.
- How much money do you want to make each day?
- What time do you want to start work each day?
- What time do you want to finish work?
- How do you want to feel each day?
Align Your Business Plan
Building your business plan is exceptionally important, and knowing it inside and out is for the best. Once you know your personal goals, you can begin writing out those plans, and you can emphasize what sets you apart from other real estate businesses in the area. Your personal and business identities are going to mix together here, so make sure you give it real thought. Here are questions to consider.
- How does selling real estate make a difference in your life?
- What values and principles drove you to real estate?
- How do those differ from the business next door?
- What things are going to be owned entirely by you?
Building a Marketing Plan
Marketing is going to be the part of your operation that never takes a break, and it’s a part that can’t get ignored. Regardless of the type of real estate you want to sell, you need to train your brain to strategically think of marketing concepts that target the area that you work in. There’s no time to kick back and coast on referrals; you need to make yourself known. Here are some questions to consider.
- What do your personality and approach offer your prospects?
- Is there anything you can provide that no one else can?
- What are the latest trends in your market?
- What creative ways can you use to talk about these trends with prospects?
In many industries, being organized strictly means having things in order, but in real estate it means much more. Organization is an extremely important value in real estate because it leads to prospects.
Many real estate agents and businesses that have succeeded in the market recommend including your website and the nurturing of your leads into the organization process. It’s essential that your site is consistently updated with properties on the market, contact information, agents working for your business, and any other relevant information.
If you aren’t organized, there’s a high chance that you aren’t going to nurture your leads properly, because you likely won’t find the time to contact them before they have found someone else. The majority of people look to purchase a property within six months, and if you have the prospect, you need to nurture them and show them that you care to keep them from moving on. If you are too unorganized and end up with more prospects than you can handle, you can end up losing them, as well as your reputation.
Once you have followed along with a basic plan and mapped out the first four key elements to building a successful real estate business, you can start focusing on the more in-depth pieces that you need to tend to. It’s essential to remember that you aren’t just paying your own bills, but as a real estate business owner, you are also responsible for your team’s success. Don’t rush through the process of building your business; take the time to complete all basics thoroughly.