Writing up a real estate business plan is not difficult, but it is time consuming. To help you craft your business plan, we have broken it down into its individual parts:

Market Analysis

Establish the facts of the market you are working in. You will need to define these three things:

A Market Overview
Describe your industry: its current size, historic growth rate and other trends.

Your Target Markets
What kinds of clients do you work with now? Who do you aim to work with? Where do your clients come from? What do they have in common?

A Competitive Analysis
Who is your closest competition? Identify your competition by services offered and market segments. Define how their business compares to yours.

Organization and Management

Lay out the structure of your company. Who do you rely on to keep your business running? How are the responsibilities divided up?

Operations
Describe your business model and services, along with decision makers and professional vendors.

Personnel
Who have you hired already? What positions do you plan to hire for in the future? What will you pay them?

Company Analysis

Try using a SWOT (Strengths, Weaknesses, Opportunities and Threats) analysis to better understand your company’s current needs and challenges.

Company Goals

Review the previous year’s numbers and achievements to decide what spending to increase, where you should decrease and what you should keep the same. This will help you determine:

Revenue goals
How much money do you need to make?

Sales goals
How many homes do you need to sell?

Organizational goals
How can you make your business better?

Goals for personal business growth
What do you need to do to improve as an agent?

Marketing Strategy and Expenses

How will you market your business and your listings? How will you reach new clients? What message do you want to send? What image do you want to project? How much can you spend on those marketing efforts?

General Business Expenses
What items and services do you buy? How much do they cost?

Lead Generation Activities
What lead generation tools or services will you pay for? How much will they cost?

Marketing Your Listings
What is your marketing budget for your listings? Will it vary by price? Client? Location?

Financial Plan

Calculate your expected profits for the next year, using your projected revenue and expenses. Reviewing last year’s expenses will help you understand where you spend money in your business, whether you should spend money there again in the future and how much.

In this section, you will also review the methods you use to manage your business’s finances.

The Executive Summary

A snapshot of your business plan as a whole, this touches on your company profile and goals. Include these two items:

Your Mission Statement
This explains what your business is all about.

General Company Information
This is the who, what, where, when and why of your company.