There is no doubt that owning your own business can be quite exciting. It gives you the opportunity to work on your terms and, although you will still be responsible for caring for the clients needs, it certainly does provide you with a lot of freedom.
One type of business that is considered by many individuals is a real estate brokerage business which is not only because the industry itself is quite exciting, it is also one of the most profitable options when it comes to business ownership. Many people wonder, however, how is it that you open such a business and what are the steps necessary to do so?
Analyze Your New Business
The first, and perhaps most important thing to do is to analyze business. The fact of the matter is, there are many options available when it comes to real estate brokerage, including franchises or starting a business from the ground up.
Many people choose to go with a franchise, simply because you start with a name behind you. In reality, a franchise is not always going to be the best idea. At times, it is better for you to start on your own and build up a reputation for yourself in your local area.
Finally, consider the possibility of specializing in one particular area of real estate. Perhaps your niche could be commercial real estate, national real estate or you may even try being a local realtor! Depending upon the area where you live, you may also want to go after local clients in the housing market as well.
Write a Business Plan
A business plan is perhaps one of the most often overlooked parts of opening a new business, but you should not skip this step. After all, a business plan is more than a written document that may help you to get a loan; it is a document to help you keep on track with your new business.
Establish all of the details in your business plan, from the smallest to the largest. A well-written business plan includes the following.
- Executive Summary
- Mission Statement
- Company Description
- Description of Organization and Management
- Marketing Strategy
- Unique Selling Proposition
- Financial Projections
- Income and Expenses Growth
Look for Financing
It can be quite expensive to start a real estate brokerage business so that financing may be necessary. Make an estimate of how much capital you will need to operate your business and get it off the ground. Included as part of your business plan.
Some people decide to finance the business on their own, either with cash on hand or perhaps through a credit card. More than likely, a real estate brokerage company will eat up your savings, even if you have enough available.
Bringing on partners may also be an option although this will make you responsible for caring for their wishes, so you will not be as independent as if you got the financing on your own. In some cases, you may be able to find a silent partner who would invest in your business without making business decisions.
A bank loan may be necessary, or you may be able to get a small business administration loan. Depending upon the type of loan that you look into, it may be required to put up some collateral, such as your house.
Establish Your Business
The next step is to build your business, which would require that you obtain all of the necessary permits, find a location for your office and purchase the office equipment. You also need to look for some insurance, and open broker trust accounts through your local or online bank.
Now that you have your business established, it is time to make it grow! Begin to build some contacts in your local area, do some advertising and try to get your new business in front of as many people as possible.
When you put what is necessary into your new business, you will find that it works quite well. You can be very successful with your real estate brokerage business, and once you begin growing, the sky is truly the limit.