The estate agency industry has been known to be one of the most competitive markets in the UK. And to curb the ever-growing need of the industry and also know how best to succeed in the market irrespective of how competitive it might seem, you will be needing a business plan for your real estate agency company. This article is here to cover everything you need to know about your business. By using the tips in this article, you will also learn how to create a business plan for your real estate agency corporation.Â
We also have a pre-made unique estate agency business plan in case you urgently need a business plan.
What is an Estate Agency Business?
An estate agency business is a company that markets or sells properties. As an estate, you get to sell, acquire, lease and manage various types of land and landed property on behalf of a client in exchange for a monetary commission.
Now before you consider starting up your estate agency business you should be in a position where you can handle the storm of poor sales or bad deals and still be able to pay yourself and keep pushing. As an entrepreneur, it is best to have a solid plan that can always dust you up and push you back into the business.
What is the Importance of an Estate Agency Business Plan?
Most of the time, it is accurate to say that a good number of entrepreneurs still do not understand the potential of having a real estate agency business plan for their business. An estate agency plan can get your business ideas off on the right foot while giving you a clear idea of what the market looks like and how to tackle it effectively.
Getting a business plan for your real estate agency can also help you identify your strengths, weaknesses, opportunities, and threats that may either affect your business negatively or positively. A business plan can also serve as a road map to enable you to achieve your goals faster. Having known this, let us get to how you can create this business plan yourself using our unique template.
How Do You Write up a Business Plan?
There are some particular procedures that should be present in every business plan for your real estate agency. These basic elements are what make up a professional business plan, and we have clearly analysed them below.
#1. Executive Summary
This is one big branch of your business plan that needs all the attention it can get. Your executive summary should be a brief summary of your whole business plan and should also cover your vision and mission statements. While writing this section of your business plan, you should keep in mind that it should be absolutely clear and concise for your readers to easily access the information you’re trying to pass through.
#2. Company Overview
Your company overview is basically an in-depth analysis of your estate agency. You can start with the history of your business. You can mention the structure of your company, your mid and long-term goals, competitors and generally how the industry works.
#3. Market Analysis
In this section, you are required to include all findings on your market. Before this can work, you will need to perform market research on your industry. This is because you need to truly understand and define your target market to understand your customers better and also know how best to serve them. To do this effectively, you should look out for your competitors, examine their existing customer base, specify which demographics to target, and then watch how you can reach your potential clients in due time.
#4. Competitor Analysis
Your competitive analysis section should cover a clear analysis of other estate agencies and what they do, so that it will help you understand needs and demands too. This section should also cover their weaknesses and strengths. Describe who they are and state the biggest agency in the market. You can also access their resources and determine how you can be ahead of them.
#5. Sales and Marketing Strategy
The main essence of a marketing strategy is to tell your readers the methods and strategies that you would employ to create awareness for your agency. Good marketing is the leading cause of revenue growth in every establishment, and advertising your business effectively will make a difference. To carry out this marketing strategy, you can create a solid social media presence, collect customer data and even make use of fliers and magazines.
#6. Operational Plan
An operational plan simply covers some procedures as well as policies that will ensure that your estate agency runs smoothly and will consistently earn success and growth. This section is important in a business plan because it tells your reader how you intend to carry out your goals and also serves as the backbone of your brand growth.
#7. Financial Plan
If you’re seeking funding, then you should pay more attention to this section of your business plan because you need to develop clearly defined financials for your readers. The financial section of your business plan should include a balance sheet, cash flow statement, and income statement.
What is Needed to Start an Estate Agency?
To start an estate agency, some factors need to be addressed to run a successful company. These factors are merely just essential pre-start-up basics that every business owner needs to be aware of before kicking off. These processes include:
- Start a real estate agent license course
- Get a business plan
- Do proper research and know the competition
- Select a real estate business model and narrow down your niche
- Prepare your marketing plan
Can I Start My Own Estate Agency?
Yes, you can start your own estate agency and manage it till it yields a massive degree of success. Before starting, you need to make proper preparations and also get yourself a real estate agency business plan for better experience. There are also some factors you need to consider before starting your estate agency and they include:
#1. Having a Passion for Your New Business Venture
Aside from making profits, what other reasons do you have for starting a business? Money is essential, yes, but what else can you offer your business? For any business to start with a valid and solid foundation, passion must be in play. Having a passion for what you do makes you press harder, even when faced with a hard challenge. To start your own estate agency business, the passion for it needs to be present.
#2. Acknowledging Possible Risks
Before starting an estate agency, you should understand that there is no business without risks. You should be ready and alert for any obstacle because, at the end of the day, what matters most is how well those risks were being handled.
#3. Have Enough Capital
Although you don’t need to have a truckload of money to start your estate agency, you will need some working capital to market yourself and get popular. Having at least £60k is advised.
#4. Have a Good Marketing Skill
One of the best ways to start as an estate agent is to market yourself as an expert in your field. When your prospective clients get to see your potential, they will love to strike deals with you.
Do Estate Agents Need Qualifications?
Starting an estate agent business does not require a truckload of qualifications. You will only need to register your business, get the necessary licences that may be required, and get a solid knowledge of your new business venture.
Do You Need a Licence to be an Estate Agent in the UK?
You don’t need a special license or qualification to work as a real estate agent. But you can learn a course or two, get qualifications that can show you read those courses, pick the type of property business you want and then set up your business.
How Can I Start a Property Business With No Money UK?
If you wish to run a property business but you do not have enough finances to carry out your plan, then you can partner with someone who has what you do not have. Your partner can handle the money issues while you run the managerial aspect of the business. There are other options to this, like borrowing, looking for desperate sellers, using leverage, or working out a trade.
Need Extra Help to Create Your Business Plan?
It is okay to experience some level of difficulty while trying to figure out how to compose a business plan for yourself. This is where we come in. At businessyield consult, we specialise in writing professional business plans for entrepreneurs like you.
Instead of spending hours and days trying to figure out how to come up with a business plan, you can try out our professional pre-made estate agency business plan here.
Final Thoughts
Running a successful estate agency takes a lot of commitment and hard work before growth can take place. And to even find the journey more convenient you will need to own a business plan. With a business plan for your company, you would be able to cross bridges that most businesses could not find a way around.
FAQs
Can you make good money by starting a real estate agency business?Â
Yes, you absolutely can! A real estate agency business can generate a total range of £18k to £72 million per year. It all depends on getting a constant contract and the amount of commission an estate agency makes from each deal.
Why does a real estate company fail?
Most times, failure in an estate agency firm can be a result of inadequate perspective and lack of information on the latest trends in the real estate market. Failure can also be experienced when there is slow and unstable communication between the agency and its clients.
What do estate agents earn?
Estate agents in the UK make an average salary of £41,392 per year. If you have a long year of experience in the real estate industry, with hard-earned qualifications then as a real estate agent, you can earn up to £50,000 -£100,000.
