Business planning

How to launch an estate agency business Know your competition

it’s a competitive and disruptive market, but with the right attitude and acumen, an estate agency can set itself apart and make an impact. Here, entrepreneur Jahan Safdar explains how new founders can launch an estate agency business.

When once you couldnt walk down a high street without passing rows of estate agents, the rise of online agencies, such as HouseSimple and PurpleBricks for example, is now transforming the way people buy and sell property.

Whether looking to set up with a physical presence on the high street or stay purely online, there are still a number of key fundamentals that prospective business owners must think about if they want to launch an estate agency.

A common concern for all small business owners is the sheer volume of red tape. Small UK business owners spend 120 days each year on administrative functions alone, according to one recent study, and while bureaucracy is inevitable in a startup, there are ways small business owners can avoid getting buried in administration.

Before deciding to launch an estate agency, it’s worth considering the following aspects of your business.

don’t forget the basics

For a hands-on business-like estate agents, creating a seamless customer experience is vital. it’s all well and good spending a large chunk of your budget on marketing to get prospective clients through the door, but if you can’t manage appointments, reminders and calendars, youll really struggle to retain clients.

There are numerous software tools on the market that allow you to quickly set up booking systems before taking your pick, make sure they are device-agnostic (so all consumers can use them) and that reminders are automated.

While this is a relatively simple function of a business, it can become laborious if you’re having to do this all yourself

it’s important to create the impression of engagement with clients. Automated reminders and calendar appointments make you seem like you’re keen and engaged. In a busy market, such as that estate agents, things like attentiveness and good customer service are effective ways to set yourself apart.

Suss out the competition

While online estate agents are shaking up the market, youd also be nave to underestimate the significance of high street presence before you launch an estate agency.

If you are looking to buy out a shopfront, it’s worth checking out the local competition. How much do other estate agents charge in fees? How often are properties turned over in your area?

If you want to see what the size of the market is in your area, it’s worth looking at the level of market activity and weighing that up against the number of estate agents operating locally. You can get an idea of sales per month using tools like Zoopla.

Take a thorough look at costs

When you launch an estate agency business youll have more than their fair share of startup costs to think about. Those keen to have a high street presence will have to consider rent and business rates, and all agents need to think about the likes of staffing, transport and advertising.