Tips for creating a real estate agency business plan

 


Since the launch of the program “Recherche appartement ou maison” in 2006, Stéphane Plaza has inspired many vocations. Coincidence or not, this same year marked a notable increase of 13.8% in the activity of real estate agencies.

Unfortunately, behind the scenes, real estate agents are far from the world of glitz and glamour, and the champagne rarely flows freely within their agencies.

But no reason to be discouraged; you are here to succeed!

To do this, start by establishing a solid business plan for your real estate agency. We guide you.

Real estate business plan: adapting your business model to market constraints

The real estate market suffered: in 2012 and 2013, 6,000 agencies closed in just two years.

Since then, the market has recovered marginally, but overall turnover has only increased modestly: +1.6 percent between 2014 and 2015. 

The crisis and the weight of digital in real estate transactions

The good news the pitfalls in the way of real estate agents are multiplying and strongly impacting their market share.

Good news?

Yes! Because competition boosts the ambitions of entrepreneurs and because constraints give rise to innovation.

You arrive at the right time to create a real estate agency if you make these obstacles your allies.

The observation is undeniable: the crisis is dampening enthusiasm, and consumers are moving towards volatile products and services related to the entertainment and leisure sector to abandon investments in stone.

However, The man must be prepared to accommodate; this basic need continues unquestionably. Under these conditions, betting on the rental management market seems attractive.

Another development that will not accept any backtracking: the era of the net favors transactions between individuals, and the use of a real estate agent is less and less privileged.

As proof, 240,000 transactions took place between individuals in 2012, compared to a little less than double with the intervention of a real estate agency.

The monopoly of real estate agencies is plummeting, so it's high time to integrate digital into your business model.

Market research and definition of the concept: two steps before writing the business plan for your real estate agency

We have just seen that the real estate market is heated, and there is fierce competition. To stand out, you will have to differentiate yourself from your competitors.

To prepare well, ask yourself the right questions. Your answers will be a valuable guide when starting your real estate agency. Here are some avenues to explore.

1. Agency under sign, independent or real estate agent, position yourself

Each model has as many advantages as disadvantages, so choose the best suits your strengths and weaknesses.

Are you an internet whiz and don't have the means? Opening a real estate agency in a network of online agents allows you to reduce your structural costs while leaving your field of action free in terms of communication.

Is communication not your strong point? Joining a brand brings you the notoriety you lack to start your business.

2. For effective and targeted communication, specialize

One of the great difficulties when creating a real estate agency is that you have to succeed in attracting both buyers and sellers, which is not necessarily easy when you have a small marketing budget.

An excellent method for achieving your goals with a restricted budget is to specialize. A good technique is to specialize. This allows you to focus your communication on a single type of well-defined product or service and thus maximize your impact.

Old or new? Commercial real estate or specialized residences? It's up to you to see which type of product seems the most promising in your region.

3. Tax instability is a major obstacle; overcome it

The tax measures voted or envisaged by the Government interfere significantly in the purchase decision of individuals.

To take advantage of these legislative and regulatory meanders, which are losing the French and slowing them down in their investments, why not focus the concept of your real estate agency on reliable and attentive advice?

 You may have realized numerous ways to set yourself apart in the real estate agency industry.

Before developing your real estate agency business plan, do a careful market study to find the keys to your success.

What should your real estate agency business plan contain?

The business plan of a real estate agent generally consists of the following parts:

  1. Executive summary
  2. presentation of the company and the team
  3. market analysis
  4. business strategy presentation
  5. operational details
  6. financial plan

Whether or not you need to resort to external financing, preparing a solid business plan is strongly suggested before creating a real estate agency.

Bible of any entrepreneur who wishes to succeed, this document is a basis when creating your agency and a roadmap for your first months of practice.

As you work on your company's business plan, you will discover that this exercise allows you to ask yourself the right questions specific to your activity: how do you plan to manage the cash flow problem insofar as a real estate agency generates random recipes? In what form will your training be the most profitable as an apartment hunter, property manager, or real estate agent? Digital tools and traditional advertising, what budget will you allocate to your communication to challenge the competition? Investment in time and money, how will you manage these essential elements?

How can I easily create my real estate agency business plan?

A good way to easily create your real estate business plan is to use online business plan software.

This tool allows you to make a financial forecast even if you are not an accountant (the software takes care of the calculations for you), draw inspiration from business plan models, and obtain a formatted document that you will only have to present to your bank.

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