The Do’s and Don’ts of starting up your own Estate Agency

Estate agents are the professionals who people turn to when they need help with their property sales or purchases. All the legwork that comes with finding the right property can be left in the hands of a capable agent. Some skills and expertise in the property sector are necessary if you wish to become an estate agent. Property agents can be conversant in several types of transactions or only specialise in one like commercial real estate. The competition in real estate is extremely high, and if you intend to open a company, it helps to have a few guidelines. Knowing what to do and what not to will save you from common mistakes of estate start-ups. Here is a look at a few basics on how to become an estate agent

Do Have a Business Plan

Any start-up needs a concise business plan to provide a blueprint to follow. Your estate agency must have objectives to reduce the risk of failing. Knowing what you intend to achieve at the end of a year or two will provide guidance in everything you do. A decent business plan should define the service that you will provide. It should contain a budget and a marketing plan. You must also identify the market that you will be targeting, so you know where to focus your efforts.

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Do Get Some Qualifications

Before you put up a sign outside an office building advertising your real estate office, know what qualifications you need. A degree is an advantage for an estate agent, but it is not a requirement. However, if clients see that you have some formal experience, it can go a long way in boosting their confidence in your work. The scope of the business will help you decide the right courses to take.

Do the Marketing

When allocating funds, set aside a reasonable amount for advertising and other brand promotion measures. For a start-up, marketing is one tool that you have to leverage fully to gain an edge. Begin by building a brand that your target market will not have trouble relating to. Create an image that is easy to trust because that is what the property market is based on. Pick the channel you will use for marketing carefully because trying to promote on all of them will bankrupt you.

Don’t Underestimate the Costs

Whether it’s a physical store or an online venture, be clear about what it will cost. Of course, the usual expenses of a start-up will apply, such as transport, staff and equipment. The excitement and everything that you have to accomplish to get the business running can make it easy to neglect some of the costs. Miscalculations can cause trouble later when you find that you have to pull cash from other sources to fund something that you overlooked.

Don’t neglect Savings

Granted that saving can be hard for a new business, but you have to try. The way the property market works is that estate agents are paid on commission. It means that you may not have a steady stream of clients that bring in a monthly income. The number of deals you make will determine your profits. Try to apportion some of that cash for savings especially since the market is seasonal.