There are many reasons to start a real estate business. Maybe you have been dreaming of leaving your nine-to-five job, or perhaps you have always had an interest in real estate and are finally putting that passion into practice. No matter the motivation, creating a successful business requires patience, perseverance, and a lot of dedication.
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What is a real estate business?
Real estate businesses are involved in buying, selling, renting, and investing in homes and properties. These are among the most significant financial decisions people make, so you must be prepared to serve them well.
This is a great time to enter the real estate business as home prices grew 19% in 2021, and are forecasted to continue increasing into 2023. While the prospect of striking out on your own
might sound scary, it will be worth the effort if done right. Real estate is a gratifying and lucrative career for those with the proper approach.
How to start & grow a real estate business: Step-by-step
Before establishing a real estate business, you should first consider the necessary steps.
Step 1. Determine your real estate business structure & goals
While your overall goal might simply be to build a strong business, it’s important to operate in more specific terms. Consider what you’re hoping to achieve and how you intend to reach that goal.
In some cases, people working in real estate measure their success by sales totals or procuring a certain number of new clients, but you should decide what definition of success makes the most sense for you. Additionally, you will need to identify your business structure, including whether you plan to work independently or with a team.
Step 2. Research the real estate market: Who are your buyers & sellers?
It’s impossible to succeed in any endeavor if you don’t understand the real estate industryit, so market research is critical. An excellent place to start is by doing a basic web search and analyzing posts on social media platforms.
As you conduct your research, analyze what kinds of properties are moving the most quickly, which areas are seeing the most movement, and the types of buyers and sellers associated with these properties. This will help you to establish a pool of potential buyers and sellers.
Step 3. Craft a strong real estate business plan
It has been proven time and again that the most successful businesses begin with a strong business plan. One study found that such companies grow 30% faster than those that don’t start with a good plan.
The question that follows is what exactly should be contained in a business plan. At the very least, it should include your business description and structure, the core services you offer, your finances and budgeting, and your initial marketing strategy. Putting these points on paper makes it much more likely that you will follow through.
Step 4. Review legal & insurance requirements for the real estate industry
Although this may not be the most exciting part of starting your business, learning the legal and insurance requirements necessary for compliance is vital to your future success. To begin, make sure you’re appropriately licensed to act as a real estate broker or agent in your area. This requires you to pass at least one test in most states.
You will also need to verify that you have selected and set up the appropriate legal structure for your business. The possibilities include a sole proprietorship, partnership, limited liability company, and corporation. Another point to research is whether you’re required to purchase any insurance, such as liability coverage.
Step 5. Get social: Set up your realty website, socials, & communication channels
Businesses fail every day, even great ones. In fact, 11.6% of real estate businesses fail within the first year, and of those that survive, 35.1% fail after the first five years.
If you want to avoid becoming part of those statistics, you need to ensure that the public knows your business and brand. You can cultivate awareness through omnichannel communication, networking, and promotion, particularly over social media. Don’t forget to also pay close attention to your website and how visitors will perceive it. For example, to help ensure potential clients feel that your business is responsive, consider using an automated chatbot for times when actual human interaction isn’t possible.
Step 6. Start marketing, networking, & prospecting for homebuyers & sellers
After establishing your online presence and infrastructure, you will need to begin marketing more aggressively. You want clients to not only know that you exist but also why you are valuable to them, and what you can offer that no one else can.
There are many marketing techniques for real estate, and it’s best to use a combination rather than relying on just one. Some of the most popular strategies include social media ads and posts, pay-per-click (PPC) ads, content that is optimized for search engines (search engine optimization, or SEO), and Google Business Profiles.
Step 7. Nurture & manage your real estate leads
Never assume that a single contact with a potential client will result in a sale. In reality, people are rarely convinced to engage with a business after one interaction. Instead, that initial connection should be part of a broader strategy known as a sales funnel.
In sales funnel methodology, you must make prospective clients aware of your business, generate and follow up on leads, demonstrate your value, and finally convert potential customers into actual customers. Aloware can help you move your target audience through your real estate sales funnel.
Ready to take the first steps for your real estate business?
Establishing a successful real estate business can be intimidating, but it’s a very achievable goal with the right steps, and the demand is definitely high. Surveys have shown that 87% of buyers purchase their homes through a real estate broker or agent.
To make your business as successful as possible, take full advantage of any available resources. One tool that will boost your performance from the very beginning is Aloware.
By enhancing your connection with leads through automatic pitches and simple, straightforward workflows, Aloware offers everything you need to optimize your customer relations management and get more deals done.
Schedule a demo today.