Starting a new business can be exciting and nerve wracking all at the same time! Luckily, there are many resources these days that can help you kickstart your business without all of the overwhelm.
Before you dive into your first sale, take a look at these five essential things you need to know before starting your real estate business:
- Create a Business Plan
You’ve heard it time and time again – you must have a business plan in order to be successful!
Going into your business blindly will only lead to frustration, confusion, and in most cases, a loss of valuable investment dollars. Don’t get caught up in the idea that being your own boss means you can do whatever you want – the fact of the matter is, having a plan for how you will operate your business is more about your future clients than it is about you!
2. Set Up Your Operations
“Operations” doesn’t have to be a scary word! When it comes to setting up your business for success, you will want to decide how you are going to serve your clients. Think about the client experience:
- How will you bring on new clients?
- What does the house hunting process look like?
- How will you negotiate and close sales?
Having clear systems prior to landing a new client not only gives you peace of mind, but brings a certain level of confidence and expectation to the partnership.
3. Know Your Audience
Being an expert real estate agent is more than knowing the homes you are listing and showing. You must first understand who you are working with and how best to serve them! Oftentimes, your idea of a perfect home may not align to your clients’ vision. Learning to adapt to the market and clientele will allow you to think and act like your clients would, ultimately leading to easier and more efficient sales.
Do an in-depth analysis of your market – What are popular trends, home prices, and demographics? How does this clientele like to be served?
4. Take Care of the Legal Obligations
We know you’re ready to make money now, but it is imperative that you take care of the legal side of things first!
You will want to get a real estate license before you begin working with any clients. The qualifications and costs are different in every state, so make sure to consult your local real estate bureau to understand what’s required.
Other obligations may include finding a real estate brokerage to work for and/or joining the National Association of Realtors (NAR).
5. Have a Solid Marketing Plan
Just because you start your real estate business doesn’t mean the clients will always come!
Networking is a major part of growing a successful business. Once you are set up and ready to serve clients, spend time thinking of how you will reach them. For example, if your ideal clients are often on social media, it may be worth it for you to create a business account to share content. You can also check out your local chamber of commerce for networking events and even consider finding a mentor to shadow during your startup phase. Regardless of the route you take, create a plan that works around building a solid database of contacts so turning a profit becomes a breeze!