Make a business plan for a real estate agent

5 Steps to Writing the Business Plan of Your Franchise Brokerage Agency

Do you want to open a franchise brokerage firm? To do this, you need to convince bankers, or even external investors, to finance your project. To do this, write a complete business plan. Here are 5 steps to writing a business plan for a real estate agent.

Introduce the team and the creation of the project

In real estate more than in any other sector, the franchisee’s experience, skills and diplomas are fundamental to the success of the project.

In franchise properties, one can actually encounter two main scenarios:

  • Either the project manager joins a network of agents. In that case, this part of a real estate company’s business plan should highlight the project manager’s commercial experience and specify that as a future agent, the T-card is not necessary as he will act under the network manager’s mandate.
  • Either the project manager integrates a franchise of real estate agents. In that case, this part of the business plan should highlight the experience, diplomas or future education that will enable the candidate to obtain the T-card which is essential for practicing as a real estate agent.

The credibility of your franchise real estate project will directly depend on this first part of your business plan. Do not hesitate to detail your professional background and compare it with the skills required to succeed in real estate.

Present the study of the real estate market

FNAIM, but also the notaries in France, regularly provide fairly accurate data on the general state of the real estate market. And this all the way down to the county level. You should therefore initially rely on this data to present your study of the real estate market.

But in another step, you will need to analyze the local real estate market :

  • Number of houses and apartments in the whole area;
  • Average income;
  • Average prices per square meters by property type;
  • Number of transactions per year;
  • Average duration of use of a property;
  • Etc.

Third, cut out your hinterland into quarters and apply the same criteria to them. The goal: to demonstrate that you have detailed knowledge of the market and its characteristics.

It is also strongly recommended to list the competitors present in the catchment area and analyze them: what are their strengths, their weaknesses, etc. And this to demonstrate how your project will be able to fit into this market.

Highlight the marketing and communication strategy

When you set up a franchise business, whether it’s a real estate business, a real estate business or any other business, the marketing strategy as well as the national communication strategy are defined by the network manager : this is the whole principle of the franchise.

Basically, therefore, this part of your business plan will be written in consultation with the network management teams: marketing positioning, goals, customer acquisition strategy, etc.

On the other hand, you will need to detail the way you plan to communicate and position yourself in your catchment area. : Even if the leader of the network gives you his support and guidance, this local communication falls within the powers of the franchisee.

Searching for individuals who sell their property on retail platforms, publications in local newspapers, looking for prescription issuers / partners (finance brokers, bankers, etc.), distribution of flyers in mailboxes in neighborhoods with strong dynamics, etc. : there are many solutions to complement the leads that the network head brings. In this part of your real estate agent’s business plan, you must list those you plan to hire.

Demonstrate the economic model and present the economic forecasts

The business model will directly depend on the chosen real estate franchise.

  • If you have chosen to become a real estate agentit will essentially be a matter of presenting the amount of commissions that you will receive from the brand (generally from 50% to 90% of commissions on sales) as well as your fixed and variable expenses (telephone subscriptions, distribution platform announcements, estimated travel expenses, any royalties at the head of the network, repayment of loans, etc.).
  • If you have chosen to open a real estate agency, this part of your business plan will be similar to any other business: fixed costs (rent, staff costs, miscellaneous subscriptions, etc.), variable costs (travel costs, preparation of letter of purchase, etc.). ), royalties on the leader of the network and of course forecast revenue, which consists of commissions on sales but also rental management, etc. Real estate agents actually have more costs than real estate agents, but they have a wider range of sources of income.

To build these numbers, and especially the revenue forecasts, you need to rely on:

  • On data from your market research, by extrapolating your amount of transactions, properties under rental administration, etc. ;
  • On the data coming from the main end : The latter can actually help you refine your financial forecasts thanks to data from the already established agencies.

Write the summary

The final step in developing your business plan is to write the summary, which is an introductory summary of your business plan. Clear, concise, effective, it covers the key points of your project, while arousing the interest and curiosity of the reader, generally a banker.

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