Writing a Personal Business Plan


When I got through my real estate classes in August 2003, I knew enough to pass the state's real estate licensing exam, but I didn't know much about becoming a a real estate agent. My perspective now would lead me to believe that there are several different areas of preparation to become a real estate agent.

First, even before real estate school, or as soon as possible during real estate school, it'd be a good idea to have a written business plan. I mean, one of the most common pressure sales tactics I've been unfortunate enough to receive is the "If you want to be a SERIOUS agent/investor/etc. you've got to do X" or "It's a sign that you're a SERIOUS realtor to do this or that." Well, if you're serious about going to (for many purposes) work for yourself as a real estate agent, wouldn't it be worth the times and effort to plan out the hows, wheres, budget and even work day as best you can?

Putting together the most comprehensive business plan possible will be one way to prepare yourself in other aspects besides what you need to know to pass the test.

In your written business plan, you might answer the following: Which broker will you be choosing and why? What are the commission splits? Will your broker do any coop advertising or provide any marketing materials? What will your monthly fees be if any? Will you be joining a broker that's a member of the board of Realtors? What are the yearly fees to join the Board? Are there any mandatory classes you'll need to take before becoming a member? When will these classes be held? What schedule will you keep? What % of your day will you be doing what? What kind of support/motiation will you have to do the kind of contacting that you don't enjoy? What is your monthly budget for gas, marketing materials, flyers? What will your total initial layout be? Based on the budget you've created, when do you have to have your first sale and how will you achieve it? What activities will you perform to find new contacts? What will you do to learn the actual ropes? Who will you bring new concerns to?

When I passed the exam, I signed up with a "100% Commission" shop with little training, no marketing support, and little more than a "good luck". Knowing what I know now, I'd suggest getting as many of these questions sorted out and resolved beforehand.

Find yourself some people you look up to go over your business plan, not just buddies. You want to present this to people you respect to 1) Get feedback from people that REALLY care about your success and 2) People who you couldn't want to present less than the BEST possible and researched business plan.