If you are looking to start a business that could fetch you extra income apart from your regular career or dream of starting your entrepreneurial journey full-time, real estate is one of the best choices.
Everyone, irrespective of social status, wants to own a house. Considering the growing population, one could imagine the number of plots/flats purchased or sold in the future. Also, many companies are looking for expansion and scouting for the perfect place to grow their businesses. These indicate that the real estate business has growth potential both at present and in the future.
For any business, starting a coffee shop or a multiplex cinema theatre- planning is the first step. In a real estate business, too, you have to be clear with a plan.
What is your business strategy? Whom are you targeting? Whether your business is going to be just residential, or will it include commercial properties as well? Apart from the above questions, you also have to do in-depth research, locate a property, and form a network.
Let’s look at the plan in detail
Aspiring entrepreneurs should lay down the plans. What are the company’s vision or mission and immediate goals? For example, your real estate business’ goal can be either providing ‘Affordable Housing’ or Building ‘Premium Residential Houses.’
Once you are clear with the vision, the next step is your network. Whether you are planning to start on your own or tying up with some people or company, you can become the company’s sole owner if you can afford to pump in some capital. Or choose to build a partnership with others who can afford to bring more money to the business. Not just capital, but partners can also bring on board their rich experience.
Once the goal and vision are finalized, the important step is to find out properties. As a business owner, you should have a good network who can also work as real estate agents. Also, a business plan helps you go in the right direction.
The real estate business is not just about building. And it is also about selling properties. So make sure to earn a brand name, and if done early in the business, it alone will bring in many customers with ease.
With just a few details in hand, small and medium business owners can’t venture into new verticals or businesses. Therefore, in-depth research on the subject matter is essential. In addition, you should be aware of various laws that bind that particular country/state in a real estate business.
Property portal 99acres says that Research and Develop will help in creating newer means of living and will also help in devising more contemporary means of construction.
Also, try gathering information on your competitors. Since real estate business can flourish only through satisfied customers, get their feedback before plunging into the market. Knowing your competitors, their strengths, and their weaknesses can help in laying down a proper plan. Do in-depth research of your neighborhood, their likes, and dislikes.
Social media presence
Before starting a real estate business, entrepreneurs should build a website. But, first, zero in on a proper designer and design your website, as it will help customers gather information about your company and property details.
Before buying any property, customers look at the website to get an idea about the company and search whether that particular company has a social media presence. This is to check customers’ reviews. So before starting a real estate business, be ready with a proper website and a good presence on social media.
The National Association of Realtors recently conducted a study that said that 77% of realtors actively use social media for real estate. This clearly indicates that entrepreneurs need to engage in social media for marketing actively. The study also points out that 99% of millennials begin their home search online.
Social media can also help in marketing your business. For instance, if you plan a 5-storey apartment, start uploading the plan, floor details, and units’ details. People not just look at social media posts, but they also share the same with their friends.
Marketing your business
If you take any successful company, there will be a good marketing team behind their success. Therefore, concentrate on your marketing team and try rebuilding it if you are not satisfied with the present one.
A marketing team not only clarifies all doubts of customers but also encourages them to buy a property. In the case of commercial properties, their role is very significant. The team can also launch campaigns and create awareness about the company. Building a brand earns you not just a reputation but also increases your revenues.
Listing out 8 steps to market your business, Small Business Development Corporation of Australia says first conduct market research followed by profile target markets, identify your unique selling proposition, develop your business brand, choose your marketing avenues, set your goals and budget, nurture your loyal customers, and monitor and review.
Once you become a significant player in the real estate industry, the important thing that you have to do is strengthen the brand and grow the business.
Apart from conducting real estate events, you can also attend all events in your area or the location of your upcoming projects. Furthermore, placing proper advertisements and posters helps customers recall your brand name, and it can be cost-effective.
Unlike other businesses, the real estate business is one where you are sure of appreciation of properties over some time. If you buy a property today, you can’t sell the property the next day. So you need a lot of patience as appreciation happens over a while, and you are sure to get a huge profit out of your properties.
The national average appreciation rate for homes is 3% – 5%, and if you fix up the exterior, redo the interior, make your home more energy-efficient, update your home technology and increase your square footage, all these help in adding the most value to your house, says QuickenLoans.
Technology in real estate
Technology plays a pivotal role in everything and anything that we do. Real estate is not an exception, as smart homes are gaining prominence and acceptance among all households. A few years from now, consumers will demand smart homes and everything that is connected.
As a real estate business owner, you should be aware of the latest technologies that can uplift your properties. For example, before moving in, customers are now asking for a virtual tour or using virtual reality, and they can feel the presence of living in a new home.
Forbes points out that Big Data will help property management industries in a big way. Artificial intelligence and machine learning, too, will contribute a lot to the real estate industry.
If real estate companies can offer best-in-class technology to their customers, they will remain loyal forever. Thus, understanding technological advancements in real estate helps real estate companies accelerate their growth.
Apart from being aware of legal formalities while purchasing and selling properties, real estate companies should come forward to explain the same to customers. As first-time homebuyers, customers will have a lot of queries. If there is a friendly legal team, customers will remain satisfied.
Property documents checklist, verifying the identity of the seller, encumbrance, status of tax payment, occupancy certificate, construction approvals, conversion, and land-use permissions, physical survey, and access to the property are essential steps that a homebuyer needs to do before purchasing a home, says Housing.com.
As soon as you plan a real estate business, do research, organize your finance, and ways to reach customers. Cover all marketing channels, especially social media, to reach out to as many customers as possible. You are guaranteed huge success in real business if you do your homework with due diligence and set a clear business strategy.