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As a real estate professional, I understand as well as anyone that this business has great potential for financial profitability and personal growth. But it also presents unique challenges that may surprise us along the way. Maybe you’re getting into this for the first time. Or just improve yourself as a seasoned entrepreneur.
Here are six simple yet powerful tips I can offer from my own experience to help you make your real estate startup as successful as possible.
1. Make a detailed plan
First, the amount of planning you do. Planning will have a huge impact on both your expectations and your ability to handle unexpected twists along the way. Find resources that can help you create a detailed business plan. Make sure you understand what you’re getting into. Ask yourself the tough questions that will help you define the big picture vision, mid-term strategy, and short-term goals you need to succeed.
On that note, I’ve found that even with a grand vision of the future, it’s possible to feel stuck and in a rut. Focus on narrowing that vision down to the items on the day-to-day to-do list that need to be achieved. In other words, setting (and achieving) measurable goals is how you get from point A to point B.
2. Evaluate and plan your finances
Modern brokerage websites and apps have provided a user-friendly experience for investing in condos, apartments, and other properties all over the world. It’s not hard for people to invest money in real estate and get great returns over time.
However, starting a business in the real estate industry is a whole different ballgame. This often requires a solid understanding of how to leverage debt and a strong tolerance for market fluctuations. So to avoid the headache, make sure your finances are aligned to handle a transition to business ownership. Be organized and precise about your budgets. Plan to do almost nothing at first. That way, you’ll have as much leeway as possible to grow your business without worrying about putting food on the table for you and your family.
Related: 5 reasons real estate is a great investment
3. Form an LLC
When you are ready to really start your business, the creation of an LLC is very important. Real estate as an investment can be lucrative over time and starting a real estate business of any kind has great potential. But as with any business, it’s important to protect yourself financially from any potential problems. This is one of the main reasons for forming an LLC. Unlike forming a sole proprietorship or a DBA, forming an LLC will protect your personal finances and assets from liability in the event of a dispute with your business.
Related: This Is Why You Should Invest In Real Estate Right Now
4. Define your target audience
I’ve found it extremely important to define for yourself (in the clearest terms possible) who your target audience is. With the technology boom of the past few decades, it’s easier than ever for us to focus our advertising campaigns on specific demographics. If we take advantage of this resource intelligently, it makes a big difference.
Defining your target audience means knowing what you are selling and who most wants to buy. It also has a built-in reminder that as real estate professionals, we are as much in the people business as we are in the real estate business. This means that the person behind the transaction is where our attention should ultimately be.
5. Create a website and social media presence
The ever-changing world of online communication is an important reason why building a website and social media presence will continue to be an integral part of your business success. A standalone website allows you to show who you are with complete freedom and creativity. It also provides you with a sort of foundation for your online presence, bio, content, and any marketplace or communication hub you may have active.
However, it is equally important to understand how social media can be used to reach your target audience. Social media has exploded into an ever-growing list of platforms that people around the world use to network and find what they need. Don’t underestimate the power of building and maintaining a presence on the sites that matter most to your target audience. And if website design and social media management aren’t your cup of tea (and you have the resources to do it), hire someone and pay them to do it right. I promise you it will be money well spent.
Related: The real estate game is moving fast. Are you ready to win?
Needless to say, profiting and succeeding in real estate these days takes work. But that doesn’t mean you have to go it alone. Networking can be one of the best ways to recharge yourself with the practical knowledge and moral support you need to succeed.
Seeking advice and wisdom from trusted people who have also walked the path of entrepreneurship is so important to your professional development. I try to make sure I can collaborate regularly enough with other professionals to always learn from other perspectives. And keep in mind that by consistently proving that you’re a reliable and knowledgeable real estate professional yourself, you’ll build a reputation that can better attract referrals and repeat customers later on.
In the end, it will be your following that will matter the most. These six tips are a great starting point for everyone. But, without the courage to dent your to-do list, your dreams of making an impact in the real estate industry (and reaping the financial rewards of that impact) may not come true. Be determined, roll up your sleeves and get started. Keep the big picture in mind even as you take each next step, no matter how small. If you stick with it, your business will grow and before you know it, you’ll be amazed at how far you’ve come.
Related: 5 Incredible Tips To Turn Real Estate Into Real Money