Starting your own real estate agency could be the most personally and financially gratifying move of your career. Whilst there are many things you must think about to ensure business success, here are 10 necessary steps to help you get started.
Complete the real estate agent license course
If you want to start your own real estate agency, getting the right qualifications is the first step. You must complete the Real Estate Agent License Course, which can be done at valid institutes, so you can apply to the Office of Fair Trading to become a licensed real estate agent. This provides you with the authority to then start your own agency.
Prepare a business plan
As with any new business, the business plan should be prepared. Putting together a business plan is necessary if you want your agency to become successful. The plan should explain your business goals, strategies, growth, and capital needs. Putting everything in a written document helps you make logical decisions about how to reach business success. The steps that follow are all issues you should include in this plan.
Research market area and competition
Doing research is a crucial step when starting your own real estate agency. Knowing the market, you are entering and its existing competitors permits you to determine the opportunities and threats. It also recognizes gaps in your market area that could be filled with a distinct brand or service offering. As a result, the research findings help you make necessary decisions about your agency.
Choose a real estate business model
Once you’ve done your research, you can choose the best real estate business model. There are many things to think about when selecting the right model. Will your agency present sales and property management or specialize in one service? Are you going to have a virtual office or a physical one? Will you work independently or as a part of a franchise? You should make these decisions based on your findings, expertise, resources, company size and growth plans.
Decide sustainable competitive advantage
Your research should show opportunities to become distinct. These opportunities are gaps in the market that no other real estate agency has filled. Filling these gaps can become your agency’s maintainable competitive advantage. Whatever you select, make it different from your competitors to ensure you stand out.
Execute the right legal structure
Your real estate agency must have the right legal structure. The structure influences your tax, profits, losses, exit strategies, and legal responsibilities. To find the best structure for your agency, you should consult with your accountant and solicitor. Whilst your legal structure is not permanent and should change as your business grows, it’s necessary to have the right one to start with to help your business succeed.
Predict costs and earnings
Now is a good time to process your numbers. Preparing a cash flow statement and earnings projections indicate what you need to begin and grow your business. Predicting your costs, earnings and profits also lets you see when new team members and resources will be required. This knowledge helps you make calculated decisions about the maintainable growth of your business.
Prepare marketing plan
Preparing a marketing plan is just as significant as doing your business plan. Your marketing plan should use your research to make a unique agency brand. As well, it must explain your advertising strategies and channels. For example, you should consider how social media, direct marketing, public relations and content marketing could help your agency become popular.
Design agency operations
Designing your business’ operations is a crucial step when starting your own real estate agency. Setting up proper systems, policies, procedures and processes ensures your agency works smoothly and consistently. Moreover, since your operations are the foundation of your agency’s brand, team, and culture, you need to get them right from the start. Engaging industry trainers is the best way to make sure you design ideal operations.
Plan training and motives
In order to start a successful real estate agency, you should have a successful team. To make sure your employees grow with your business, each one should have a training and incentive plan. Keeping your team at the top of their game with ongoing education and bonuses is a great way to increase productivity, performance, and profits.
Establishing your own agency is a great way to develop your real estate career. Whilst this is by no means an all-inclusive list, these are significant steps to help you get started.
Why you should start your own real estate agency during a recession?
It might seem unreasonable on the surface, to start your agency in some of the worst economic conditions in recent history. But when you do so, it becomes evident how it might feel like the right choice for some agents.
Most sales agents earn their income from a mixture of a fixed wage and commission. During tougher times, as listings become rarer and sales more difficult, commission reduces and some agents worry as their income declines.
No matter how hard they work, no matter how many hours they spend pounding the pavement, sometimes you just can’t overcome these difficulties.
So rather than surrendering, they start to wonder if a bigger change might provide them with better opportunities. Perhaps moving to a new agency…or starting their own agency!