Thinking about starting your own real estate company? This can be a fantastic idea as it can be highly rewarding and lucrative work, plus this is an industry that is in constant demand as people will always need to find a property that is suitable for their lifestyle. Running a successful real estate company can be a huge challenge, however, and you need to know the industry well if you are to thrive. Fortunately, there are a few tips and tricks that you can follow which should put you in a good position to go on and find great success in the real estate world.
Market Research & Business Plan
As with any new business, the first step will involve conducting market research and crafting a detailed business plan. The market research will enable you to understand who you are competing against and what their strengths and weaknesses are - this could help you to identify a gap in the market which could help you to find early success. Additionally, a business plan will allow you to make intelligent decisions and will be of great help if you are looking to secure funding.
Following on from this, it is likely that you will need some form of funding to get up and running. You should not shy away from this as you will want your business to be professional and able from the get-go in order to make a good first impression. There are many different options when it comes to funding, including angel investors, bank loans and crowdfunding so you should be able to find a method that suits you.
It is tempting to set up the company on your own and take on all of the work, but this is often how new businesses fail, and it is no different in real estate. You need to bring on people with different skills so that you can thrive in all areas of the operation, such as accounting, marketing, web design, admin, etc. You should also carefully recruit the best possible salespeople as this will ultimately determine how successful your company is. Many new real estate companies find it beneficial to use a real estate coach which can be a smart investment which will see significant returns on the investment.
Know Your Area
A good real estate agent knows the local area like the back of their hand. You should know the history of the region, what the economy is like, how good the local schools are, the value of real estate in different areas, statistics, public transport, future projects and anything else related to the area.
Be Known In The Area
Following on from this, you also need to be well known in the area and you can do this in many different ways. Advertising will be key (more on this to come), but it is also smart to show your face around the local community by attending events, supporting local retailers and meeting with the locals. Always be friendly, helpful and introduce yourself with a business card.
A strong brand identity can make all the difference when it comes to somebody choosing a real estate firm. You will need to be memorable which will involve having a pleasing name, an eye-catching logo and a catchy slogan. In addition to this, you also need to have an identity in the approach to your work that is embodied by your entire workforce. This should involve having a friendly yet professional nature, being trustworthy and enthusiastic. You should also make sure that everyone looks smart and professional at all times.
Develop Key Skills
A successful real estate agent will have a few key skills which will help them to close a deal. This will include excellent verbal skills, the ability to explain in simple terms, networking skills and negotiation skills. Be sure to work on these regularly whether it is taking a course or simply researching online.
In today’s internet-driven marketplace it is crucial that you have a strong online presence as this is where people will look first when looking to buy or sell. You will need a high-quality website and to appear near the top of search engine results lists. Additionally, you will need to be active across social media and have online advertising. This can all be achieved with the help of internet marketing companies.
Online marketing is very important in the current marketplace, but you should also look to advertise your company offline too. There are a few very effective ways for doing this, such as hosting a public event, sponsoring a local sports team or placing advertisements in the local paper.
You should spend multiple hours throughout the week real estate prospecting in order to cultivate leads to generate business. There are many excellent ways to do this and the internet and technology has made this easier than ever, but you should not ignore the more traditional methods of prospecting as these remain highly effective. Developing a relationship of trust is crucial, so think about more traditional methods like carefully choosing anniversary reminders with a personalised postcard and knocking on doors (although use your best judgment with this approach). Additionally, do not focus too much on prospective vendors and make sure that you are caring for the landlords that you currently have.
One of the most powerful forms of marketing when it comes to real estate (or any type of business) is word-of-mouth or referral marketing. People are much more likely to listen to a previous customer as they will be providing a non-bias overview of your service. Be sure to collect as many reviews as possible and have these in highly visible places like your company website and on social media.
It can be challenging to set up and succeed in the competitive real estate industry, but the above tips should help you to navigate the waters early on and put you in a great position to go on and run a profitable operation.