Aliso Viejo, CA (PRWEB) December 5, 2005
If you have your sights set on becoming one of the millionaire real estate agents in 2006, now is the time to start planning. Business advisors and experienced entrepreneurs agree that you should develop a strong business plan and marketing plan before you start in real estate.
A real estate business plan (see more great info at http://www.realestatebusinessplanning.com) can help you develop a fairly simple plan at first and then elaborate as you advance. While including the necessary items in a business plan is important, you also want to make sure you don’t commit any of the common business plan deadly sins:
- Putting business planning off
- Being too casual about cash flow
- Underestimating your own good ideas
- Allowing fear and dread to paralyze your progress
- Creating vague goals without steps to get there
- Including too many priority activities
- Inflating expected financial results with unrealistic numbers.
A good marketing plan assigns tasks and sets milestones and deadlines for your activities such as real estate marketing, lead generation, listings, etc. Use a business plan to set concrete goals, step-by-step action plans, responsibilities, and deadlines to guide your business. Don’t write a long-winded business plan to show how much you know about your business.
What is in a Business Plan?
A business plan is a written summary of everything you already learned about your business (for largest network of real estate schools visit http://www.realestateschoolsofamerica.com), and the future you expect to create with that business.
A well-done business plan is realistic, but conveys the energy and optimism you feel about your real estate career.
There are conventional contents of any standard business plan. For example, a business plan normally starts with an Executive Summary, which should be concise and interesting. People almost always expect to see sections covering the Company, the Market, the Product, the Management Team, Strategy, Implementation and Financial Analysis.
Here’s the order most real estate agents find suitable:
1. Executive Summary: Write this last. It’s just a page or two of highlights.
2. Company Description: Legal establishment, history, start-up plans, etc.
3. Product or Service: Describe what real estate niche you’re selling into or from. Focus on customer benefits that distinguish you from your competition.
4. Market Analysis: You need to know your market, customer needs, where they are, how to reach them, etc.
5. Strategy and Implementation: Be specific. Include management responsibilities with dates and budgets. Make sure you can track results.
6. Web Plan Summary: For e-commerce, include discussion of websites, development costs, operations, sales and marketing strategies.
7. Management Team: Describe the organization and the key team members.
8. Financial Analysis: Make sure to include your projected Profit and Loss and Cash Flow.
An effective business and marketing plan will show you how to reach the particular level of income you need by doing certain daily tasks and closing a specified number of listings and buyers/sellers. It will account for overhead and transaction costs, and enable even the newest real estate rookie (for free real estate grants check out http://www.realestateapprentice.com) to make better business decisions. You can also add an assistant or a new marketing campaign’s projected expenses and business planning will show you how many extra deals you must do to cover your new expenses. You then can determine if the expenses are worth the cost and if it is a realistic goal.
From all the real estate marketing, real estate coaching and real estate business planning tools available today, the most comprehensive and cost effective is an online business plan offered by a company called CreateAPlan (http://www.createaplan.com). It is all online, with no software of difficult books to read and is definitely worth a try. Most successful agents agree that a business plan is the leading tool that separates a winning, productive, multi-million dollar real estate agent (see http://www.homeownershipspecialist.com) from a regular one. So if you have any plans on making 2006 your year, it’s time to get a business plan.
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