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 Real Estate AgentBusiness Plan
 
Threats
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CompetitionWith two classes, and high school diploma, and age limit, anyone can become a real estateagent. These minimal criteria are what separate Me Realty from the competition. This is athreat because every newbie that sells two or three homes one year and quits, is taking two orthree sales away from Me Realty. As of January 2005, there were over one million licensedREALTORS registered with the National Association of Realtors. This national associationpromotes real estate as a career, further increasing the likelihood of increased competition.
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GovernmentGovernment involvement with interest rates, regulations governing real estate transactions,and involvement with who can sell real estate effects the entire industry. Interest ratemanipulation can increase or decrease the demand for real estate financing. Regulationsgoverning real estate transactions will require continuing education and knowledge toproperly ensure compliance. The continued government involvement will increase the timeneeded for education, reducing the time devoted to income generating activities. Lastly,government involvement with control who can sell real estate will have a large impact oncompetition. If the government continues to allow financial institutions and banks access tothe real estate market, what will stop insurance companies and retail companies (Wal-Mart,Target, etc.) from entering real estate sales.
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Lower CommissionCompetitive forces may create downward pressure on sales commissions. The competitivenature of real estate and ease of access to the industry will decrease the commission rate onhomes. This can only be combated with direct inquiry and sales finesse. Customers/clientswill work with an individual who is providing added value and the perceived increased valuethat experience, knowledge, and confidence provide. The downward pressure will alsoincrease the number of sales needed to reach financial goals.
 
Other potential threats: salaried salespeople become a reality, discounted commissions to 1.5percent, and acceleration of homebuyers' use of the Internet.
Copyright 2005 SmallBusinessPoint.com, Inc.5
 
Company Analysis
Name 
Me Realty, LLC is a one-person real estate company based in Metropolitan, State. The name MeRealty, LLC was chosen because it describes the business and brand. Me Realty is buildingbrand recognition for long-term client satisfaction.
Mission 
The objectives for the first three years of operation include:
To create a real estate company whose primary goal is to exceed customer's expectations.
 
To increase the number of clients served by at least 30% per year through superiorperformance and word-of-mouth referrals.
 
To satisfy client’s real estate needs and wants profitably.
 
To develop a sustainable real estate business that generates value for customers.
To uphold the ethical codes set forth by the State Real Estate Commission.
 
Company History 
The principal, Gadda Mooga, has a BS-Marketing from the State University and an MBA fromUniversity of State. Ms. Mooga has over five-years experience in retail sales, ascending toDepartment Manager at Retail Store, a small pet store. As Department Manager, Ms. Moogawas responsible for customer service, inventory orders, and selling pet supplies. This experiencehas taught Ms. Mooga how to overcome customer objections, different closing methods, andhow to manage multiple tasks. These skills have built an excellent foundation for a successfulcareer in real estate.
Current Situation 
Market SituationReal estate has experienced three years of unprecedented growth and success. Fueled byhistorically low interest rates, new and existing home sales have exceeded prior year’s salesrecords. Various economists predict a real estate bubble, which will effect home values and realestate sales. The bubble burst theory is highly speculative and one that most real estateprofessionals are cognizant of but nothing to be alarmed. Historically, rising interest rates haveadversely effected home sales by reducing the number of individuals buying and selling homes.Individuals will always need basic shelter and homes satisfy that need.
 
According to the Multiple Listing Service, the market Me Realty, LLC will be competing had4,705 sold residential units in the last six months, with 1,776 currently pending. This is a veryactive market and one that can sustain Me Realty, LLC’s participation. Currently the market hasover 3,635 active residential listings, or 7.75 months of supply, with an average 96 days on themarket. This is higher than the historical sold days on market of 51
.Copyright 2005 SmallBusinessPoint.com, Inc.6
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