Since the launch of the program “Recherche appartement ou maison” in 2006, Stéphane Plaza has inspired many vocations. Coincidence or not, this same year marked a notable increase of 13.8% in the activity of real estate agencies!
Unfortunately, behind the scenes, real estate agents are far from the world of glitz and glamour, and the champagne rarely flows freely within their agencies.
But no reason to be discouraged. You are here to succeed!
To do this, start by establishing a solid business plan for your real estate agency. We guide you.
Real estate business plan: adapting your business model to market constraints
The real estate market is suffering: in 2012 and 2013, 6,000 agencies closed in just two years.
Since then, the market has rebounded a bit, but overall turnover has only taken off timidly: +1.6% between 2014 and 2015.
The crisis and the weight of digital in real estate transactions
The good news the pitfalls in the way of real estate agents are multiplying and strongly impacting their market share.
Good news?
Yes! Because competition boosts entrepreneurs’ ambitions and constraints give rise to innovation.
You arrive at the right time to create a real estate agency if you make these obstacles your allies.
The observation is undeniable: the crisis is dampening enthusiasm, and consumers are moving towards volatile products and services related to the entertainment and leisure sector to abandon investments in stone.
The man must be accommodated; nevertheless, this fundamental need must endure. In these circumstances, making a gamble in the rental management sector looks appealing.
Another development that will not accept any backtracking: the era of the net favors transactions between individuals, and the use of a real estate agent is less and less privileged.
As proof, 240,000 transactions took place between individuals in 2012, compared to a little less than double with the intervention of a real estate agency.
The monopoly of real estate agencies is plummeting, so it’s high time to integrate digital into your business model…
Market research and definition of the concept: two preliminary steps to writing the business plan for your real estate agency
We have just seen that the real estate market is heated, and there is fierce competition. To stand out, you will have to differentiate yourself from your competitors.
To prepare well, ask yourself the right questions. The answers you provide will be a valuable guide when starting your real estate agency. Here are some avenues to explore.
1. Agency under sign, independent or real estate agent, position yourself
Each model has as many advantages as disadvantages, so choose the choice that best suits your strengths and weaknesses.
Are you an internet whiz and don’t have the means? Opening a real estate agency in the form of a network of online agents allows you to reduce your structural costs while leaving your field of action free in terms of communication.
Is communication not your strong point? Joining a brand brings you the notoriety you lack to start your business.
2. For effective and targeted communication, specialize
One of the great difficulties when creating a real estate agency is that you have to succeed in attracting both buyers and sellers, which is not necessarily easy when you have a small marketing budget.
To spend less money and accomplish your goals, a good technique is to specialize. This allows you to focus your communication on a single type of well-defined product or service, thus maximizing your impact.
Old or new? Commercial real estate or specialized residences? It’s up to you to see which type of product seems the most promising in your region.
3. Tax instability is a major obstacle; overcome it
The tax measures voted or envisaged by the Government interfere significantly in the purchasing decision of individuals.
To take advantage of these legislative and regulatory meanders, which are losing the French and slowing them down in their investments, why not focus the concept of your real estate agency on reliable and attentive advice?
As you will have understood, there are many ways to differentiate yourself to make a good place for yourself in the real estate agency market.
Before developing your real estate agency business plan, be sure to do a moral market study to find the keys to your success.
What should your real estate agency business plan contain?
The business plan of a real estate agent generally consists of the following parts:
- Executive summary
- presentation of the company and the team
- market analysis
- business strategy presentation
- operational details
- financial plan
Whether or not you need to resort to external financing, it is strongly recommended to prepare a solid business plan before creating a real estate agency.
Bible of any entrepreneur who wishes to succeed, this document is a basis when creating your agency, but also a roadmap for your first months of practice.
As you work on your company’s business plan, you will discover that this exercise allows you to ask yourself the right questions specific to your activity: how do you plan to manage the problem of cash flow insofar as a real estate agency generates random recipes? Apartment hunter, property manager, or real estate agent, in what form will your activity be the most profitable? Digital tools and traditional advertising, what budget will you allocate to your communication to challenge the competition? Investment in time and money, how will you manage these essential elements?
How can I easily create my real estate agency business plan?
A good way to easily create your real estate business plan is to use online business plan software.
This type of tool allows you to make a financial forecast even if you are not an accountant (the software takes care of the calculations for you), draw inspiration from business plan models, and obtain a formatted document that you will then only have to present to your bank.
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