A detailed business plan for opening your own real estate agency with calculations
Writing a business plan for a real estate agency is a difficult and time-consuming process, it requires awareness of the key issues of real estate work.
It is necessary to understand that it will not be possible to develop a real estate agency on a huge scale from the first steps. It is advisable to have some kind of experience in this business in order to roughly understand what exactly you want to do. Many experts argue that the experience of a realtor is essential, otherwise the business has no future.
What is a real estate agency? Many have come across it, or perhaps just a concept. It will be quite simple to explain how it works. When a client (potential buyer) needs to buy / rent an apartment / house / warehouse, and so on, they turn to a special place - a real estate office or, as it should be said, a real estate agency. The task of the realtor is to show the client all possible housing options in the city.
We recommend watching a video from a real business owner:
A real estate agency performs several functions at once: searching for housing, renting housing, buying housing, selling housing, renting out housing and, of course, assistance in filling out and processing documents. To implement each of these points, a business transaction is concluded between the client and the agency, which neither of the parties has the right to violate.
Video - How to Build a Real Estate Business
Competition and Marketing
Opening such an agency and not getting lost among the many similar firms will be quite difficult, especially if you are starting a business from scratch. Clients, counting on their own inexperience, will turn to expensive and large firms that have existed for more than a day, and a new company that has entered this business cannot count on a large flow of clients from the first day.
In order for your company not to get lost, it is necessary to provide it with advertising. What not to do:
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- Leave tiny ads in local newspapers and magazines. If you are doing advertising, do it wisely. You will spend money, and no one will even pay attention to it, and if they do, it will most likely cause the opposite effect, since such an advertisement will immediately show how much money its customer has. You can put up image advertisements in various publications and create a website - this will only play into your hands. A good agency must have good business cards - contact the appropriate company that will help you design and print them.
- Think you don't have to spend money. The expenses in the business plan do not end with the lease of premises, so think in advance where and how you will take out a loan, and do not let everything go by itself.
- Rely on your own experience (if any) or feel better than others in something. Constantly study the market and your competitors, learn from them and your mistakes. Constantly consult and monitor the development of not only your own, but also someone else's business.
Searching for real estate - for buying or renting, sooner or later is relevant for everyone. Real estate agencies are the main assistants for citizens and organizations in this matter, they are always in demand. And since real estate is also a profitable way of capital investment, according to statistics, even in times of crisis, unfavorable for the economy, most enterprises in this direction are afloat. The main thing in this business is a competent strategy and a well-thought-out business plan of the real estate agency. A business plan is a comprehensive project of an enterprise created from scratch.
The developed business plan is intended to assess the economic efficiency of this investment project and analyze the prospects for opening a real estate agency from scratch. The plan is drawn up taking into account analytical and statistical data, as well as preliminary calculations of financial costs and expected income.
The nature of the organization is designated as a real estate broker. Among the services provided - selection of real estate for purchase or lease, assistance in paperwork and other types of assistance to the population and organizations on a commercial basis.
The main goals of the project can be designated as:
- - meeting the demand in the real estate market;
- - creating an enterprise with a high level of profitability;
- - making a profit in accordance with the level calculated in the plan.
To open a real estate agency, it is planned to receive a commercial loan in the amount of 2 million 732 thousand rubles. This amount is the result of calculating the total cost of the project at the initial stage of the creation and development of the agency. The interest rate on the loan will be 14%. The plans include repayment of the loan from the first month of the company's operation, which greatly simplifies the calculations and the process of paying the loan. Taking into account such financial indicators, the payback period of the project, taking into account the discounting, will be approximately 2 years. The investor's income (the total amount of interest paid on the loan) for this period will be within 176 thousand rubles. Such approximate calculations, as well as a more detailed analysis of the financial component of the project, given in the relevant section of the plan, makes it possible to determine the total economic effect of the project in the amount of over 196 million 200 thousand rubles.
Real estate agency as a type of business
Real estate transactions are very troublesome and time consuming. In addition, they take a lot of time and effort. There are very high requirements for the registration of documents for real estate of any order, and since ordinary citizens usually do not have sufficient experience in their registration, the help of a specialized agency will be relevant. These structures are engaged in the design of residential buildings, apartments, garages, summer cottages and other real estate. Realtors are directly involved in the paperwork, performing the most complex and unpleasant bureaucratic procedures for the client.
Real estate agencies have to constantly withstand the onslaught of competition and fight for the client, especially in big cities. This is the main challenge that will have to be overcome with a well-designed marketing campaign. The second aspect is that the profit from them depends very much on the correct strategy, but first of all - on a competent business plan. Opening a real estate agency is not difficult, the initial investment in it is not very high, but keeping it afloat is much more difficult due to high competition.
It is important to distinguish between a real estate firm and a real estate agency. A real estate firm actually performs part of the responsibilities of a real estate agency, but it is not required to have a license and at the same time its scope of competence is not so wide. The real estate agency deals with the legal part of the work, organizational and financial, and has a wide range of rights and powers.
At the same time, the agency is interested in having in its composition active agents-realtors who are able to establish the necessary connections, possess important information, operate it on the spot, navigate the real estate market. The success and reputation of such a business, its profits, and its development largely depend on the well-planned work of a realtor in buying and selling real estate.
In fact, this project provides for an agency that has as its purpose the provision of intermediary services between two parties - a buyer and a seller (lessor and lessee), depending on the type of transaction.
A business plan for your own real estate agency allows you to immediately determine the cost of opening it and the likely level of profit. When compiling your own version of the document, pay attention to the state of the market in your region and the presence of competitors there.
Real estate investments have long been considered the most reliable. The money invested at least does not depreciate over time. All this is provided by a relatively high demand for housing, because each person needs a roof over his head.
The specificity of the Russian market is such that many potential customers prefer to look for suitable properties on their own, through ads or friends. Nevertheless, the situation is gradually changing, and in the future the number of citizens seeking services from real estate agencies will grow.
In general, the situation on the profile market was not too favorable until recently - the past economic crisis did not stop its growth, but significantly slowed it down. Now a positive trend is clearly visible there, which will continue in the medium term.
There are quite a lot of real estate agencies in Russia. For newcomers to business, large offices create great difficulties. They have practically taken over the entire market, and thanks to this they receive the most profitable orders. It is very difficult to deal with them. To resist large organizations you will have to:
- provide services at the lowest prices;
- ensure their high quality;
- promptly respond to customer requests.
In addition to large players, there is a huge number of medium and small firms. They usually operate only at the level of their settlement, and in large cities - at the microdistrict. To stand out against their background, it is necessary to conduct competent advertising campaigns and offer affordable prices.
Who to target
A fairly large number of people need the services of real estate companies, which is why every year the demand and relevance for intermediaries in the sale of real estate is growing steadily
The main task of a real estate company is the purchase, sale, exchange, and rental of various types of real estate, both commercial and residential. The agency's work includes the selection of the necessary options for the transaction, as well as legal support of the person: execution of all the required documents.
It should be noted that a company can have both a narrow specialization and provide clients with a whole range of services. All this must also be taken into account when developing your own business plan for a real estate agency.
Licensing and certification of agency activities
Following the Law "On Licensing Certain Types of Activities", the organization and activities of real estate organizations are not subject to licensing. Despite this, the agency is simply obliged to certify brokerage services that will comply with national standards of real estate activities.
The Russian Guild of Realtors has developed national standards for the professional activities of real estate agencies, which are registered in the State Standard of the Russian Federation.
Today, there are many different forms of registration of legal entities: OJSC, CJSC, LLC, PE, IE, etc. When it comes to opening a real estate agency, in the overwhelming majority of cases, the organization is registered as an LLC.
This requires the following list of documents:
- application form 11001 - on the state registration of LLC creation. The signature of this application must be notarized. Also, it is necessary to indicate the specific type of services provided by the organization (OKVED);
- the charter of the LLC, where information about the founder and the authorized capital will be indicated;
- the decision to create LLC No. 1, in that case if there are several founders, a memorandum of association with the minutes of the meeting No. 1 is required;
- a receipt for payment of the state duty for the registration of an LLC.
The organization must be registered as a payer of taxes, VAT, or single tax, after which it is necessary to obtain the necessary certificates and references from the tax service, as well as statistics (within 5 days).
In addition, you need to open a bank account and report it to the tax office.
The niche of real estate and real estate services remains one of the most profitable in Russia. This explains the annual growth in the number of different agencies. Despite the rather tough competition, with a well-organized approach to all points, opening a real estate agency is considered a promising and profitable business idea. But creating a stable business will require building a good customer base and gaining the trust of the population. The business has a low entry threshold, which attracts a large number of newcomers to the business. Most do not stand up to competition and are closed within a year. Therefore, it is necessary to carefully consider the business strategy, if possible, acquire connections and take into account all the details.
Relevance of the project
Real estate business is one of the most relevant and cost-effective projects that can be opened at the moment. This is because the business does not require a large start-up capital, and with a good strategy and implementation it becomes a source of profit.
The relevance of the case is determined by the constant demand in the market. But it also may not be stable, it is affected by:
- Currency rate.
An entrepreneur needs to constantly monitor the slightest changes in order to have time to take action before the situation gets out of control.
How much money does it take to open a real estate business?
To start a business with real estate services, you need to calculate the start-up costs.
Key points to complete:
- To register a business - 10,000 rubles.
- Rent a room for a company office - 35,000-70,000 rubles (depending on the size of the room).
- Advertising campaign of the agency - 50,000 rubles.
- Purchase of the necessary furniture and equipment for the office - from 50,000 rubles.
- Accounting services provided to an outsourcing company - from 3,000 rubles.
- Costs for transport, mobile communications, utilities - 15,000 rubles.
To open an agency you will need 100,000-300,000 rubles.
How does an agent make money?