How to Plan, Launch and Grow a Real Estate Business: 22 Essential Tips
Starting a real estate business is not for the faint of heart. What other industry requires you to call dozens of potential clients every day – and close only about five deals in your first year (if you’re lucky)?
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The common adage is that three-quarters of real estate agents fail within their first five years. But for those in a position to do so, starting your own real estate business can definitely provide you with the seven-figure job of your dreams.
Here’s a candid look at how to start a real estate business and our best advice for avoiding the mistakes that can hijack momentum as you grow.
For many up-and-coming agents, real estate is their second, third or even fourth career. You like the idea of “being your own boss” while earning more than your last job, but freedom means very different things to employees and business owners.
The question is …… who are you?
The first thing you need to know about starting a real estate business is that yes, it is a business. Whether you’re a single agent or a team of newbies, if you dream of exceeding the average Realtor salary ($41,289 per year), you need to start thinking like a business owner – and that means planning.
Get a CRM.
Develop your ideal personal plan.
Align your business plan.
Develop a consistent marketing plan.
Get a website.
Consistent vision.
Nurture leads.
Have good time management.
1. Get a CRM.
When it comes down to it, a business is a system.
Barry Jenkins is the broker and owner of the #2 Better Homes and Gardens real estate team in the United States. He’s also a man who hates inefficiency. “I’m a big fan of making things easy. The reason my business is so successful is because it’s built on the core principle of leverage.”
To put that principle into practice, Barry uses his CRM as a true lead conversion machine. a CRM is a customer relationship management system that helps you organize your contacts and provides actionable insights. With it, you can guide prospects through relevant nurturing activities or automate the entire transaction process based on lead source.
This is very useful in real estate because the home buying process is very long with many different steps …… multiplying across many agents and even more prospects and clients.
Using CRM to achieve owner-level organization is how Barry and his team sold 240 homes in 2017. It’s not just about the front end either; Barry also uses his CRM to send automated onboarding drip feeds to new team members and keep business admins completely lean so nothing important goes wrong.
Get HubSpot’s free CRM today!
2. Create the ideal personal plan.
Before you can set the right financial goals for your business, you need to set clear financial goals for your life.
Commissions are great, but – let’s face it – we all came into this business wanting something bigger and better than what we have now. Whether it’s the 187-foot yacht of your dreams or the ability to leave the office at 2:00 p.m. to pick up the kids from school, take a moment to think about what your ideal life would look like.
Questions to consider.
What time do you want to start work?
What time do you want to finish?
How do you want to feel every day?
How much money do you want to make?
Do you want to retire at age 65? Pay for your kids’ college in full? Figure out how much money you need to save each month to do this. It’s much easier to keep answering the phone when you know exactly where your profits and commissions are going.
3. Adjust your business plan.
Now that you’ve used pen and paper to figure out what your biggest, most anti-paycheck life looks like, it’s time to talk business.
Start writing your business plan, paying special attention to the things that set you apart from other real estate businesses in your area. Give it some real thought. This is where your personal identity and your business identity can really blend together to create profit-driven magic.
Questions to consider.
How can selling real estate have a meaningful impact on you, your potential clients and the world at large?
What are the values and principles that drive your real estate business?
How are these different from the real estate business next door?
What are the three to five things you will fully own in the business?
Who will take care of the rest?
Even if you just want to ease management by hiring your first virtual assistant, it’s critical to create a big-picture vision to keep your team inspired and avoid repeating unproductive patterns.