A while back Shannon left a popular department store with 5 different pairs of shoes in her hands. She loved shoes! She loved shoes so much she decided she wanted to open a shoe store, and sell shoes to everyone in town including her friends. She knew she was going to make it big!
Later that day she went into her local bank, and sat down with the bank president. She said she needed a loan for $250,000 to start her new store “The Shoe Emporium”… Shannon was so excited! The bank president said she was also excited to lend her the money, but wanted to see a Business Plan telling her all about the store and future profits. Shannon said “What business plan? I know all about shoes! I know the different between a wedge and platform. I will sell millions of pairs so why do I need a business plan?” The Bank President asked her how much will your rent be a month, what are your projected sales goals, what are you going to spend on marketing, where will your clients come from, and on and on. Needless to say our entrepreneur couldn’t answers these questions, and therefore did not get the loan. Please DO NOT let this happen to you in your new real estate business!
Like other famous entrepreneurs such as Rockefeller, Ford, and Carnegie, you are now big time and need to let the world of real estate know what’s in the works. The first thing you need is a fresh business plan. It will take you some time, but then it should… it’s your career we’re talking about!
Here is an outline of what you should be considering:
- Mission Statement – What is your quest for your business?
- Business Concept – What will your business look like? How will it come alive?
- Situational Analysis – Why you are entering into this field? What made you decide?
- Marketing – How will you promote your business to others?
- Operations – Who are the principals and employees?
- General Descriptions and Specific Services – Maybe you want to be a full service business?
- Your approach to market – how will you position the business in today’s market place?
- Your background and history – Where have you been? What is your expertise? Why you?
- Industry and general marketing analysis – What is happening currently in the housing markets?
- Competitive advantage – What are you going to offer that sets you apart?
- Competitive Analysis and General Obstacles – Who will be your main competition?
- Indirect Challenges – Finances, interest rates, clients that will want to work with you
- Alliances and Partners – Lenders, Title Companies, Stagers, Photographers, Web Designers, etc.
- Other Resources required – Start up dollars, employees, etc.
- Talent Requirements – Maintaining a web site, payroll, consultant fees
- Long Term Development (1-5 years) – How are you going to keep the business going?
- Exit Strategy – Begin with the end in mind. Who will buy my business?
Like Shannon who loves shoes, you should love what you do! Real estate is an exciting business, and you can develop a long and prosperous career helping people buy and sell property. Take the time to sit down and develop a business plan. You won’t be disappointed! By the way… Shannon loves her new Jimmy Choo’s!