Starting a real estate business isn’t just something you can casually begin and hope to make money out of it, especially if you’re not prepared to chase your leads on a daily basis just to close around five deals in the first year – that too if you are lucky.
Popular estimates describe real estate as a hard business to manage. If you don’t believe us, just look at the estimates – around 87% of all real estate businesses in Philadelphia fail within the first five years. But for the ones who manage to survive the first five years, a whole new dream job that earns you seven-figures await.
If you like the idea and want to get into real estate, we have listed down 4 essential tips to get you started. We sat down with top real estate businesses in Philadelphia like Legalzoom LLC and learned the inside and outside of the real estate industry.
It All Begins With The Right Planning
Planning is everything when it comes to being your own boss in a real estate business. Forget whatever you have learned as a real estate agent in your life. Being an employee of a company is very different from being the boss of one. So if you want to make sure that you survive the first five years of the business, and hope to make a profit out of it, then you need to have a solid plan.
It doesn’t matter whether you intend to work as a solo agent or within a team, the plan you make today will help you grow tomorrow. A real estate business needs three kinds of plans for it to make it through the competition. These are:
- A personal plan
- A business plan
- A consistent marketing plan
Let’s have a closer look at how each of these plans matter.
Start With an Ideal Personal Plan
Before you work on the financial goals of the business, it is important to set personal financial goals that you expect to meet through the business. Look past the commissions and think about the bigger picture. What do you want from your business other than a seven-figure salary every month?
Here are some things you should consider as part of your personal plan.
- What will your everyday work timings be?
- How much do you intend to personally make from the business?
- Do intend to spend most of your professional time on the business?
- Is this a side business for you?
Even though the main thing about having your business is earning tons of money that you cannot through a 9-5 job. But if a business becomes an obstacle for your personal life, then why earn when you can’t even find the time to spend it?
Consider a Solid Business Plan
Now that you have a personal plan, its time to set a goal for your business. You need to have a solid plan that sets your business apart from the rest of real estate businesses in your area. Give this plan a real thought and figure out how you can really stand apart from the rest of the lot. Here are some questions to consider.
- What are your business’s values?
- How is your business different from other real estate businesses in your area?
- What departments of the business will you handle yourself?
- Who will handle the other important departments?
- How many departments will you personally look after?
Hiring a team member to look after different departments is a good idea. But when you are starting out with a real estate business in Philadelphia, it is very important to look after a few of the core departments of the business yourself.
Have A Powerful And Consistent Marketing Plan
In order to survive the competitive world of real estate businesses, you are going to need a solid marketing plan that works. You can’t hope to find new leads and convert them into customers if you don’t have this plan. Here are some things to consider.
How can you bring your unique approach to your business that resonates with your personality?
What is it that only you can offer?
Are you aware of the latest buying, selling, and pricing trends in the market in your area?
What are some of the creative ways you can think about to talk on these plans?
No matter what channel you decide to leverage for your marketing efforts, you should have a powerful sales pitch. Give your clients the reason to work with you within your marketing strategy and watch how well your business do against all odds.
Trade Association – Greater Philadelphia Association of Realtors