With 20 years of experience in real estate, I have seen many people climbing the ladder of success and falling to ashes with in no time. The lucrative business has attracted many people, but not everyone can make the mark. One must be very smart, knowledgeable, well acquainted and constantly have an eye on the market.
Real estate business is associated with different risks other than financial risk. Real estate business has a controlled market; it is not a broad spectrum like the other business areas. Mostly cash flow gets restricted within the same place based on market value. Here are few tips from my personal experience that can help you out to get a hold on the business.
Unlike the others, I am not going to start with, what you have to do. I believe that-one has to know, what he/she is not supposed to do before setting up the business.
The Don’ts
• Unlike any business, real estate is something where you have to be prepared to invest at any point of time. If you are thinking that this business gives you a good return –then let me tell you that there is no guarantee in the business. If you do not have the investment, then do not go for it.
• Do not set up a company until you have acquired licence for it. An unauthorised business deal is considered as offence that can completely damage your career.
• Never invest on anything without doing the ground work. If you have no idea on the property you are investing on, then selling it will be very difficult.
• Be prepared to go that extra mile to get your work done. Never set up a time for meeting a client as per your convenience, it should always be clients call as you need the business.
• Never take entire burden on your head, distribute the work accordingly by hiring staff based on the requirement.
• Do not hire/appoint a real estate agent without any contractor agreement. The agreement should be having the policies and duty codes which agent has to obey for the period he/she is serving you.
• Never skip on professional help, always have a point of contact. Consult someone with good knowledge on real estate market and also a lawyer to deal with contract agreements, agenda and other important licences.
• Do not assign any work to the agents before giving proper training. Try to eliminate the errors in the process before actually approaching the client.
The Do’s
• In my personal view, before starting any business one must have a clear cut business plan which will help the company to establish in step wise manner.
• Make sure you have enough savings to start your business, as it is not only setting up a company but lot more goes into it.
• Plan your commission structure, referral fee, advertising expenses and other fee accordingly.
• Keep your marketing department open to various challenges. Set up a new plan every day to attract prospective clients.
• Training is mandatory whenever required to keep the agents updated with new market developments.
• Always list your current clients, and stay in touch with them. It is important to have a professional environment with client as their testimony could help your company grow.
•Make sure you revise your business plans whenever necessary. What worked for you the previous year might now work in the present market.
These are few tips for someone who would want to start up their own real estate venture. However, the no business can ever be learnt without experiencing it.
