Many Realtors dream of running their own real estate business for various reasons. Unfortunately, a large percentage of new brokers do not survive.

Generally there are main two reasons:  First, having a lack of appreciation and preparation for what it takes to start up a new business; and/or not understanding a Broker‘s responsibilities and risks they assume.

There are number of excellent resources available for any Realtor looking to take this big step. A great initial resource is the Florida Realtor course “So You Want to be a Broker…”. Check with your local area Realtor Association for times and sessions.

In a nutshell, here are some of the things you should consider…

  • You will need to create a  detailed Business Plan that includes realistic details covering:
    • Your personal and business goals and objectives
    • What is your company going to look like and where will it be located and why?
    • Are you going to do your own “thing” or leverage a franchise brand? Understand the differences, the associated costs and potential revenues and costs for each.
    • If not working by yourself, how are you going to attract new associates?
    • How do you plan on recruiting and retaining key personnel?
    • What are your systems needs and related costs?
    • Will you need financing? What are the sources of financing and their requirements?
    • What are the associated business risks and related insurance products for your business, your associates and the related costs?
    • Do you know what Chapter 475 refers to and the related rules?
    • Prepare a detailed financial plan leveraging the specifics in your business plan…
      • What are your total costs just to open the doors?
      • How much cash do you need to see your business through the “typical” unprofitable initial phases of any new business? How many months will you need to carry the new business?
      • Break-down your income needs to match your proposed associate’s compensation and split strategies. How much business do you need simply to break-even? How long will it take you to get there and how much business do you need to hit your larger personal income goals and objectives?
  • Be realistic in your assumptions. It is much better to learn the challenges of running a new business through a detailed planning process than to discover these issues after you have signed a five year office lease!
  • Seek out educational opportunities at your local Realtor association, the Florida Realtors and on-line resources like www.Realtor.org to fine tune your skills and preparation.
  • Seek out advice from trusted peers and Brokers.

Whew! Now that is only a brief summary of the types of things you need to be thinking about if you want to be “The Broker.”

Next Step:  You can either go and thank your Broker for what they do or you can continue down this path a little better educated as to what it takes to create something new.  Either way….Best of Luck!

Dana Ward, the owner of Real Estate Closing Solutions in Orlando, has a financial and banking background, has run large corporate territories and started a number of new businesses. He can be a great sounding board for ideas, can refer local financial and legal resources and can help structure a solid Business Plan.  Give him a call. (See our Contact Page.)