So, you’re thinking about starting a business in real estate? Real estate is a flexible and fulfilling career move. Real Estate agents can make a significant income. How much a Realtor makes is often determined by how much time and effort is invested.
So, what exactly is a real estate business? It’s the profession of managing or being engaged in the real estate industry.
While the most popular real estate business is becoming a Realtor, there are other opportunities in real estate including property flipping, real estate investing, property management, contracting and home inspection.
Whether you’re looking to get started as a real estate agent or home inspector, the steps for finding success remain the same, and we’ll explore these five main steps further in the next section.
Steps to Success:
Conduct thorough research
Just like with any new business, starting a real estate business requires extensive research. In general, real estate is a very saturated market; however, it is comprised of a plethora of niche markets that entrepreneurs can take advantage of.
Every area is different, though, so it’s incredibly important to research your specific market including competition, earning potential, training and certification process, and industry trends.
Set up your business
One of the most crucial stages in starting your own business is setting up your structure and systems. Before you begin, you should establish basic business systems including an LLC, human resources, payroll, and marketing platforms.
Make sure you also have a good understanding of business operations.
If you don’t know where to begin with setting up your business and are looking for a bit more guidance, you may want to consider starting a franchise. With a franchise, you get the independence of owning your own business, but are backed by a proven system and dedicated support team.
Franchising is a great alternative for entrepreneurs who want to have their own business but gain a competitive edge in the market.
You’ll still need to put in a lot of time and energy to marketing your business and networking; however, you’ll be joining a company with an established brand and reputation.
Establish personal and professional goals
Owning your own business is just as much about achieving personal goals as it is professional goals. Being your own boss allows you to find flexibility in your schedule, financial freedom and fulfillment as well as work-life balance.
When setting goals, be sure to ask yourself these:
- Why do I want to start this business?
- What do I hope to gain from this business?
- Where do I see myself in 5 years? 10 years?
- What do I want my exit strategy to be?
- What kind of legacy do I want to leave?
Dig deep into your responses to these three questions to better establish your goals. Write your goals out and remember to make them S.M.A.R.T. goals: Specific, Measurable, Attainable, Relevant, and Time-based.
Get licensed and insured
Many careers in real estate, such as selling homes, contracting and home inspection, require training and licensing. Make sure you understand and acknowledge the amount of time and effort it will take to complete your training requirements and become a licensed professional.
Then, you’ll also need insurance for your business, in the event anything happens. Liability insurance is a great way to protect you, your employees and your credibility.
Market yourself locally
It’s important to promote your business to gain business. Network with other professionals in your field as well as those who you would work with on a regular basis.
Drop by their offices and introduce yourself or attend community events to get started. Be sure to swap business cards and send a follow up email or a thank you note.
It takes time to build a successful business, so be patient and remain positive. One referral can start the snowball effect of generating good business.
In addition to networking, you should also begin to market the business to consumers and potential clients. Follow these tried-and-true marketing practices:
Build a website – Having a professional and quality website helps to build a trusting reputation for your business as well as helps potential clients explore all you have to offer, learn about the company, and book services.
Have a blog – a blog is an outstanding way to show off your knowledge and expertise. It can be an excellent driver of consumer web traffic. Follow these tips for blogging to kick start your real estate career.
Have a social media presence – Engage with your community online through social media. You can easily create business profiles within Facebook and Instagram to market yourself and help draw traffic to your website.
Send emails – Emailing is one of the oldest, yet most reliable forms of marketing. Connect with other local area businesses or professionals by sending them emails introducing yourself and educating them on your business.
Create marketing collateral – Design a logo, order business cards, and invest in print marketing materials such as door hangers, promotional cards or flyers to market yourself in neighborhoods and businesses.
Using these and other real estate marketing tools will lead to improved sustainability in your long term business. The end result should be higher productivity and lead to greater Realtor commissions.
Commonly Asked Questions
Is real estate a profitable business venture?
Real estate can be a very profitable business opportunity. Depending on what field of real estate you are involved in. Some fields, such as house flipping, property management and real estate investing have high upfront costs, but also have a high return.
Other fields, such as selling homes and home inspection, have lower start-up costs, but it may take some time to reach your true earning potential. No matter the case, real estate can be a high-profit margin industry.
What type of business is best for real estate?
Any business in real estate has great potential, however, home inspection is a very popular field as there is a lack of quality inspectors in many areas, low start-up costs, and high earning potential.
It is also a great transitional career for entrepreneurs coming from a variety of backgrounds including sales and marketing, construction, skilled trades or another field. There are also home inspection franchise opportunities to help entrepreneurs get started.
Real estate is an exciting industry to be a part of. It is always evolving, so you are always learning and applying new skills.
It is also a great opportunity to work closely with others and provide essential services to your neighbors and community.
If you’re looking for your next career move, remember to do your research first and determine if real estate is the right fit for you.
About the author: The above article on how to start a real estate business was written by Magda Ryan. Magda enjoys writing about topics related to the real estate industry and franchising business.