10 Things to Consider When Starting Your Own Real Estate Business
There are a lot of things to consider when it comes to starting up your own real estate business. If you’re looking for advice on what to do before you get started on the process, follow our guide for assistance.
Are you planning to start your own real estate business but are unsure where to begin?
With 87% of home buyers purchasing their property from licensed agents and brokers, starting your own company isn’t a bad idea! The beginning can be challenging as you find your footing and it’s important to learn as much as possible before you dive in.
Follow our guide below for the 10 things you should consider when starting a real estate business.
Get Some Real World Experience
If you’re considering opening your own real estate business, you’ve hopefully already taken and passed the certification test required in whichever state you reside. Once this is complete, you’ll benefit from some real-world experience before you dive into starting your own company.
You need to develop a business and create a network of clients and other realtors before
venturing out on your own. This could mean joining another agency for a year or two to learn the ropes, make connections and have the name of a bigger real estate presence behind you. Or, it could simply mean finding a mentor and shadowing them to see how it’s done and meet new people.
Whatever route you select, you need to have a frame of reference for how the ins and outs of the real estate industry work before you go off on your own. Knowledge is power and the more tools you’re able to bring to your own company, the more likely it is to be successful.
Make a Plan
Every business, regardless of what industry you’re in, requires a business plan. In creating the plan, you’ll be able to work through the kinks of a new business and prepare for any bumps in the road.
You should figure out who your biggest competition will be and why, how much money you’ll need to launch the business and how much you’ll need to stay afloat for at least the first year.
A business plan also allows you to discover more about potential goals for the company, both short-term and long-term. It also provides a roadmap for how to reach those goals.
Talk to someone who has been down a similar path and seen success. Ask what they included in their business plan and what lessons they learned along the way. All these bits of information can help contribute to your overall business plan since people who have been there will be able to relay to you what to do and what not to do.
Pick a Niche and Find Your Market
It’s important to figure out what separates your from the other real estate agents and how you’ll appeal to a target group of sellers and buyers. Is there a particular geographical area you’re deeply familiar with? Do you speak another language and can help foreign buyers find their dream home with ease?
Whatever your special skill may be, it’s important to identify it and make it work for you. This industry has no shortage of real estate agents trying to make their mark and dominate the market, so you need to capitalize on anything that can make you stand apart from the rest.
To help figure out where you can be of the most service to your target audience, you’ll need to do some market research to discover what the people in your area are looking for, their income and more. Once you have this information, you can better position yourself to be in a place where you’re of service to them and fulfilling a need.
Now that you have an understanding of where you thrive as a realtor and which part of the market is in need of your special skill set, you’ll need to be sure people know how and where to find you.
Branding yourself and your new company is just as important as any step in the process because, without it, you’ll find it more challenging to gain clients and do new business.
Creating an online presence is a great place to start. Make Facebook and Instagram accounts for your business so you can keep people up-to-date while your business grows. Creating a curated social media platform that works for your business is completely free and will help you grow your network, attracting new home buyers and sellers to your page.
Aside from just showing off recent sales, be sure your social media pages provide information and valuable tools for the people who are viewing it. By becoming an expert in a particular area and the go-to person to get those answers from, you’ll begin to build a reputable business that potential clients can find value in.
While starting any business requires some initial capital, be realistic and reasonable about how much money is truly necessary. You don’t need to spend your entire life savings, take out huge loans or get big investors interested in order to launch your business.
Many real estate companies have been founded off of just a few thousand dollars and lived to see success. Only spend what you truly need to get up and running. This is how you create longevity and prevent getting ahead of yourself when it comes to finances.
Skip the Office
This one’s simple and important. You don’t need an office, so don’t spend money on one. If you’re just starting out your business, it’s likely just you or a few other employees. Can you work from home?
You can even meet at a coffee shop regularly if you need to have one-on-one face time with one another to go over logistics. In this industry, you’re out in the field, at showings, and in the car most of the time, so there’s no need to spend money on a fancy office at the beginning.
Build A Website
Every legitimate company should have a website. We live in the age of Google which means if someone is searching your name or business and you fail to have a landing pad with all pertinent information about who you are and what you do, you’re at a disadvantage already.
Build a clean, user-friendly site that allows people to understand quickly who you are, what you do and how they can reach you.
This can get tiresome but following leads is one of the best ways to acquire new business. This means a lot of mingling and waiting.
You may have an acquaintance or former colleague who has been toying with the idea of selling their home for a while. Sure, it would be easy to move on since they’re not pulling the trigger and you don’t want to waste your time. But the reality is, it’s best to check in and stay on top of them.
This way, when they do decide to sell their home, you’re their first call.
Build a Team
You may want to initially go it alone as you start your business. After all, that will require less overhead and you won’t have to be worried about taking care of employees.
However, if you decide not to go it alone, build a team you can trust. Recruit a few realtors you know well and who have performed over the years or ones who are green and eager to succeed.
Whatever route you go, it’s important to find people who share your vision and want to build something amazing with you.
Thank Your Clients
People will remember their experience working with you from start to finish. Once you’re done working with a client, it’s important to thank them in a meaningful way so they come back the next time they need your service and refer you to others.
You can thank them by treating them to a fancy meal or simply sending a bottle of their favorite champagne to their new home. Whatever you decide, it’s an important step to include in the process.
Start Your Real Estate Business Today
Now that you have some helpful advice for starting your own real estate business, you can move forward with confidence and knowledge. If approached correctly, you can have a thriving and lucrative business in no time and be your own boss.
Check out the rest of our blog for more tips for living an entrepreneurial lifestyle!