Either you have a real estate business plan or you’re mucking around in the dark. That might sound harsh, but it’s the truth. While there may be different paths to success, some things remain true across the board. The first one is that agents who ask “What is a business plan?” won’t last long if they don’t start taking this seriously.
A real estate agent business plan is a document that outlines the exact strategy you plan to follow for the next year to grow your business. It clarifies the specific milestones you plan to reach and a step-by-step outline for how you intend to reach them. You’ll probably want to start with a business plan template as a foundation. While a paper business plan template is helpful for getting and idea of how to organize your thoughts, it’s not really practical in the long term.
That’s because your business plan isn’t some immovable thing you’re forced to follow exactly. It’s a guide that keeps you focused and intentional. Ideally, you’re always learning, always tracking, and always adjusting your strategy. That’s why an online business plan outline is always the best choice.
Business plans are universal across every type of business, and your plan will look totally different whether you’re an agent or a broker. There are several ways to structure the parts of a business plan, and each role you hold will shift what you are trying to achieve and how you will accomplish it. This is why understanding how to write a business plan that fits your specific real estate goals is essential.
It is fundamentally important to remember that in real estate, two principles guide your success:
- You are not just an agent. You are a business owner. Therefor, you need to run your business like a business.
- Being busy does not always mean you are generating income.
Keeping these principles at the top of your mind reinforces why a written business plan for real estate agents matters. A clearly defined business plan outline helps you identify goals, pinpoint your priorities, and commit to a structured plan of action. If you ever feel stuck, looking at a business plan example can help you visualize what a complete structure looks like.
This begs the question, can’t you just use a business plan generator or ChatGPT to write your plan for you? If that’s the level of care you plan to put into your business, I’d recommend updating your resume and using LinkedIn Fast-Apply to start looking for a different job. It’s alright to use AI to generate ideas and help you clarify information, but your plan is to specific to you, your market, and your future to pawn it off to a tool.
What Is a Business Plan in Real Estate?
A business plan in real estate is a structured document that outlines your goals, identifies your target clients, clarifies your daily actions and how they build to milestones, and provides a step-by-step strategy for continuous growth.
Again, when I say document, this is a living document that’s meant to be consistently refined, adjusted, and edited. That’s why tracking and measuring your progress is so important. If something isn’t working in your business plan, you’ll be able to tell and fix the problem immediately. And if you don’t even have a business plan outline and you’re just randomly hoping that the thing you’re doing will work, then good luck with that!
Why Create a Business Plan at All?
Studies show that taking the time to understand what a business plan is and then formally committing to one can significantly increase your chances of success. In fact, writing a real estate business plan can raise your odds of achieving your goals by more than 12 percent. Clearly, failing to plan is planning to fail. The clearer your plan, the more likely you are to follow through on your marketing, prospecting, and business development.
Creating a strategic business plan in real estate also boosts your credibility. Brokers, lenders, and partners take you more seriously when you demonstrate that you understand the parts of a business plan and have built a clear business plan outline worthy of investing in.
A business plan in real estate answers critical questions, such as:
- Who is my ideal client?
- How much do I want to earn?
- What sales numbers are required to meet my income goals?
- How will I cover my business expenses?
- What are the main lead pillars I plan to pursue?
- What marketing pieces will I run and when?
- How will I manage my time and continuously set appointments?
Your realty business plan is never set in stone. It can and should shift as you learn, improve, and face new opportunities. A good plan allows adaptability while providing structure.
Parts of a Business Plan: How to Start
Executive Summary
One of the most important parts of a business plan is clarifying who you are, what you do, and what sets you apart. Seems simple, but it’s remarkably powerful. An executive summary identifies your potential clients, your focus areas, potential sales opportunities, and relevant competitive insights. This section is one of the clearest demonstrations of how a well-written summary can influence your direction, serving almost like a business plan executive summary example in action.
In many ways, this section answers the question, “What is a business plan?” in its simplest form. It is your elevator pitch for who you are and why clients should choose to work with you.
Clarify Your Brand Story
This section explains the story behind your business. It details why you entered real estate and what opportunities you see in your market. Your business description clarifies who your clients are, what they value, and why they choose you. These insights form an important part of your business plan outline and can be easier to build if you look at sample business plan examples for structured inspiration.
Most important here is your MVV Statement (Mission, Vision, Values). Who are you? What do you value? What is your vision of the future? Your real estate business plan isn’t just about business strategy; it’s also about keeping you motivated and energized in times when it’d be easier to slack off or quit. It’s so, so powerful…
Perform a SWOT Analysis
A SWOT analysis helps you evaluate your Strengths, Weaknesses, Opportunities, and Threats. This step is essential for strengthening the parts of a business plan that require honest self-assessment.
Strengths highlight what gives you an advantage. Weaknesses help you identify areas for improvement. Opportunities show where growth is possible. Threats identify external risks you must prepare for.
The Parts of a Strategic Business Plan in Real Estate
Marketing Strategy
Your marketing strategy outlines how you will attract clients. This section of your realtor business plan should define your niche, describe your target audience, and explain the message you want to deliver. It also answers one of the most important questions inside any business plan outline: how will you generate leads?
Financial Plan
Your financial plan outlines all expected expenses, revenue projections, and sales targets. It reflects the practical side of what is a business plan. This section should provide realistic estimates for licensing, continuing education, clothing, tech upgrades, fuel, brokerage fees, marketing expenses, and more.
A solid financial plan grounds your realty business plan, ensuring you understand what it will take to stay profitable.
Local Market Competition Analysis
Of all the parts of a business plan that keep you competitive, this one should really fire you up. Who are your competitors? What are they doing to take business from you? Where are the farms they’re working? How can you stand out? Researching your competitors helps you understand what makes your services unique and how you can differentiate yourself.
Understand Your Ideal Customer
Your ideal customer profile clarifies who you are speaking to and how to reach them. Understanding their priorities, preferences, and communication style strengthens the backbone of a strong business plan outline.
Implementing Action Plans
Action plans turn your realty business plan into daily steps. They define what you must do to hit your goals. You may create separate plans for marketing, continuing education, social media, and lead generation.
Evaluating and Revising Your Plan
A realtor’s business plan is a living document. As your market changes, your plan should evolve. Regular updates will help you refine your strategy, remove what no longer works, and add new opportunities.
There is powerful value in learning from experienced professionals. An expert business plan review from a real estate coach can help you avoid common missteps and adopt proven business plan tips that shorten your learning curve. Building your plan with a coach is the surest way to ensure success and then stay accountable to smashing your goals. Want to learn more? Schedule a free Tom Ferry business strategy consultation to speak with an expert and see if coaching is right for you!
Realtor Business Plan FAQ
What is a business plan?
A business plan is a structured document that explains your goals, the strategy you will use to reach them, and the steps needed to move your work forward with focus and clarity.
What is included in a business plan outline?
A business plan outline typically includes sections for your goals, background information, market insights, your approach to reaching clients, and the actions you plan to take over time.
What are the main parts of a business plan?
The main parts of a business plan usually cover a summary of your goals, an overview of your business, an analysis of your strengths and challenges, a plan for engaging your audience, and a structure for tracking your progress.
