Plan Ofbusiness Real Estate

Business Approach

For the real estate business plan to be operative, the following questions must be considered and responded to, at least:

What service will I provide? Am I going to specialize in rentals? In buying and selling operations? In tourist apartments? Or

Will I combine to dilute risks? …

How will I lend it? In my place?, franchisee ?, Internet?

With what quality will I offer my services? What degree of deepening do I aspire to have in the market? What quality guarantees will I provide? How will I manage customer service?

Who are my competitors? How do they work and how am I going to differentiate between them? What agencies are there in the area? What do they offer? What advertising do they do? How much do they charge their customers?

Financial Plan

You must determine what capital you need to start and what will be your financial cushion to assume possible losses and cover unforeseen events.

Both Income And Expenses Are Going To Be Variable.

As far as income is concerned, not every month you will be able to sell or rent the same number of homes or premises (probably in May and June your revenue will increase if you do business in summer areas, but it is likely that during December and January suffer a downturn).

As for expenses, keep in mind that the salaries of sellers usually have a fixed part and a commission, which will fluctuate according to sales.

The advisable thing is to realize a plan to a year, the term that is considered normal to reach the point of balance, that is to say, the moment in which losses and gains are equalized (and from which your company begins to be profitable).

Initial Capital

It is essential that you take into account the fixed costs (electricity, water, etc.) and the salaries of the staff if you want to have it. Your specialization will also determine the expenses. For example, if you are going to rent apartments in coastal areas, the cost of borrowing your premises – apparently, in a central area- will be higher than if you are dedicated to the sale of industrial buildings, in which case you will be able to establish yourself in the outskirts.

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