A real estate business plan is used to plan out what action needs to be taken to achieve your professional goals. For agents, a business plan will take into account incoming commission income and fixed expenses like desk fees, Association of Estate Agents (AEAN) and Real Estate Developers Association of Nigeria (REDAN) dues, and car payments, to determine how many deals you will need to close to reach your financial targets. It will also spell out in detail what steps you need to take to achieve your goals.
Why You Need a Real Estate Business Plan (even if you think you do not)
Think of your commute to work. You have driven the same route or taken the same bus so many times that you probably do not even think about it anymore. Think of your business plan as a map for your career. Instead of getting lost and asking for directions, you simply remember your plan and forge ahead.
Bringing Your Goals Down to Earth
For agents, a business plan is not only a road map to your financial (and personal) development, but it helps keep you accountable as well. Trust me, even the best agents in the business had periods of doubt and uncertainty during their first year in the business. Putting your goals and the way to achieve them, down on paper can help keep you accountable when you start to second guess yourself. Since you have already run the numbers, you know exactly what you need to do to succeed.
A Business Plan is a Living Document and Adapts with Your Business
For both agents and brokers, a business plan is a living document. As your business grows, you may need to shift strategies and pinch your plan accordingly. For example, a new agent might start out buying For Sale by Owner (FSBO) lists and cold calling to get leads, and then realize they are more adept at writing Facebook ads. Since there is no right way to succeed in real estate, you will need to adjust your plan to fit your new lead generation strategy.
Using Software to Make Writing Your Business Plan Easier
If you want to make your real estate business plan easier to write and update, you should consider using business plan software. Business plan software will not only produce a professional looking document, but will help the writing process by prompting you to answer simple questions about your business.
LivePlan is the software used to write(ever changing) business plan.The software has many resources and templates for realtors. It offers an incredible array of features, helps keep your business plan flexible, and is also simple to use.
LivePlan will also give you financial calculators so adding or removing an expense, for instance, will automatically adjust your targets. LivePlan software also makes it easy to see patterns over time and whether you are hitting or missing your goals and by how much. You can even see how you are doing relative to other agents and real estate businesses.