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September 2019

Real estate,

How to Start a Real Estate Business as a Beginner

Are you focusing on starting a real estate business? The formation of a real estate agency has many attractions. Indeed, it is not only a flourishing activity that has recorded record sales since 2016 with more than 850,000 transactions but also a sector offering significant growth prospects. However, it requires being framed since its creation to ensure a sound legal and financial structure. This article creates a better understanding of how to start a real estate business.

Open a real estate agency: a project to mature

You can imagine: Starting a real estate agency cannot be improvised. The steps to achieve this are numerous, complex and time-consuming. You will have to take many steps to declare your activity, create your structure, choose a legal form, obtain a real estate business card, take out mandatory guarantees, and finally find the premises for your agency. And this will only be the first part of the case!

The first step, however, involves no moving, no steps, and no file to complete. And yet, it is essential, since it consists of asking you the right question: why do you want to open a real estate agency?

 

Why start a real estate business?

Ask yourself what motivates you in this project. The desire to become a business owner? To become self-employed after years of wage-earning? The desire to become an independent professional, manage your schedule and choose your projects? The feeling that you have to answer a request for which there is no offer yet?

 

Everything about how to open a real estate business

Entrepreneurs of two types enter the real estate business: – the former is aimed at creating a serious and stable business at the cost of hard work, and the latter is aimed at getting quick profits at any cost, they then make up the remaining 80%, which fail in the first year of their lives.

So, effectively, how to open a real estate business? First of all, from the premises under the office of your company. The location of the future office does not play a special role, it can be both in the center ($ 50 per 1 sq. M) and in the sleeping area, which is much cheaper (from $ 20 per 1 sq. M). The only recommendation is better if the office is located in a walkable building, such as a shopping center or office building. The area of ​​the premises is calculated based on the number of employees in the company. For 3-4 people at the initial stage, a room of 20 square meters is quite suitable. The room itself must be zoned so that it is possible to conduct negotiations with several clients at once.

Office space selection

For starting a real estate business, it is advisable to choose an office in the central part of the city (if the agency will be engaged in the rental and sale of real estate throughout the city) or in the area where the activity will be directly carried out. The most optimal solution is an office on the ground floor with a separate entrance on the red line. The second option is an office in a large business center. An office may consist of several separate rooms. The first room is a customer waiting room and reception, the second is a place where real estate agents are located. Separately, a manager’s office should be organized, which can be combined with a place for paperwork if the lawyer is coming. If the lawyer works in the state on an ongoing basis, you need to provide another office where he will work and execute the transaction.

Office furniture can be purchased the cheapest – tables and chairs. To work, you need a phone and a computer, which at first two employees can share. It is better to have two phones — one for incoming calls, the other for outgoing calls. Later it will be necessary to purchase a telephone exchange.

 

Staffing

The next important stage in understanding how to open a real estate business is the selection of personnel. Get ready for the fact that getting an experienced realtor in a start-up company is unrealistic. Most likely, not beginners without experience will come to you, and you will have to train them. The main thing is to pay attention to the decency of the applicant, his personal charm, sociability. You will teach the rest of the wisdom and intricacies of the profession yourself. Often, agencies send their specialists to courses at the regional association of realtors. But after passing the theory, future specialists learn everything in practice under the supervision of an experienced realtor.

Another promising source for recruiting agents is former customers. Often, they make good specialists. Firstly, they already have experience in real estate transactions, and secondly, if they are involved in this area, that means they also have abilities.

Salaries to agents are paid according to the piecework scheme – a percentage of the profits received by the agency. Moreover, the larger the agency, the lower the percentage. Newcomers to the market have to pay up to 70% of the agent’s revenue.

It is worth worrying about the so-called scammers who get jobs in real estate agencies just to pump out information and databases. Therefore, care must be taken in advance to protect information from such scammers.

Another type of unscrupulous employees is those who make “left deals” bypassing the agency. In addition, there are cases of fraud with the client’s money, which can irrevocably destroy the reputation of your business.

 

Additional Resources & Marketing

In addition to agents, you need a room cleaner and a lawyer. The lawyer at the initial stage cannot be kept in the estate, and if necessary, call on transactions, which so far will be few.

And, finally, the most important stage, where and how to start a new and unknown agency to look for customers.

A key factor in the success of starting a real estate business in the market is its reputation. To strengthen the image, you can apply for entry into the regional association of realtors.

It’s good to place outdoor advertising, at least in your area where the agency is located. The advertising budget is between $300 and $1,000 per month. But experienced realtors unanimously call “word of mouth” the most effective channel of promotion, i.e. positive feedback from former customers who recommend your agency to all your acquaintances and friends. Therefore, the most important thing is the high quality of customer service and ensuring legal cleanliness and security of transactions.

To summarize, it turns out that to open your own real estate agency you will need an initial capital of $6,000. Revenues can be planned based on the fact that 4 agents bring you a profit per month from 4000 to 6000 dollars (1000-1500 dollars per agent). Excluding agency fees, we get the amount from 2000 to 4000 dollars. Monthly expenses (including rent) can be about $1,000, total net profit from $1,000 to $3,000. The payback period is from 2 months to 2 years depending on how you will run the agency.

restaurant business,

How to start a restaurant – What you need to know

Everyone who thought about starting his own restaurant business, probably, mentally went over those areas in which he would be interested in doing business, and those that would generate income. According to polls, most often “at the intersection” is the restaurant business. Many people want to open their own cafe, bar or, if finances and ambitions allow, a gourmet restaurant. The niche of public catering is still not saturated, therefore, there is a place for bold undertakings and fresh ideas.

The restaurant business is one of the most recouped, meaning that it will take about a year to cover expenses. But the risks in the gastronomic business are great – approximately every third restaurant “burns out” within 12 months after opening.

What is happening here in 2019?

In 2019, it seems like nobody has been feeding illusions about the restaurant business as a profitable and dust-free occupation for a long time. But still, many startups, dreaming of starting a restaurant business, want to “change their lives” with the help of some business that seems attractive and easy to do (for this, by the way, you do not always need to open your own business). And if you’re “not strangling, not killing” this dream, I will try to arm them with information important for the restaurant business.

Starting a Restaurant Business – Where to begin?

Beginning restaurateurs who want to take the matter seriously, are primarily concerned about the business plan and the search for investments. But in fact, the most important thing is to think over your product: develop an attractive idea and sincerely love your guests. The concept and location are also important – two whales on which half of success is based.

Of course, in the preparation process, it is useful to use SWOT analysis, study the market, and observe other players. For example, if there was a restaurant in the place that you plan to use for a gastro-startup, you need to carefully study its history: how long it lasted, why it closed. And also analyze competitors in the immediate environment.

By the way, the unique concept is not always justified. It takes a lot of money to develop it, and sometimes it’s easier to copy the idea to get a successful business model. But in this case, you should not count on big profits, because the pioneer projects with the original concept have probably already skimmed the cream. And to open an institution with a concept that already once shot, but at another time, in another place, in a different socio-cultural environment, and count on the same success, is quite presumptuous.

Another option for beginners is to buy a franchise, in which the entrepreneur gets a ready-made, working and time-tested business model.

Take note of the Financial Conditions

The economics of starting a restaurant business depends on the selected format: calculation of food cost (cost of dishes) and other costs. It seems that the products are cheap, and the dishes in restaurants are expensive, however, the average profitability of institutions is from 10-30%. At the same time, the average food cost is at the level of 25-40% of the cost of the dish, and the more expensive the restaurant place, the lower this percentage will be.

The difference between the cost of dishes on the menu and the “base price” ensures the institution: rent, employee salary, marketing, household expenses, repair costs, the purchase of dishes, taxes and other costs.

To estimate the approximate monthly profit of an institution in advance, calculate the turnover based on the estimated average bill, turnover, and a number of seats, and then subtract all monthly costs, both fixed and variable from the day of starting a restaurant business till date.

A stream project always implies a lower wrap, and if traffic decreases, it will inevitably need to increase the price in order to stay afloat. For fast-food establishments, high traffic is simply necessary. Best of all, it is provided due to two things – a strong brand and passable location.

In addition, you will need to debug the procurement system, find suppliers and convince them of favorable conditions for you. And also organize production processes and create conditions for maintaining quality standards. In these matters, you cannot do without a good restaurant automation system. Many startups save on this product, consider and plan “on the knee”, and then do not get all the necessary analytics to make decisions.

Get legal and stay legal

A piece of good advice about how to start a restaurant business include obtaining all permissions necessary for the sale of food; obtain permission for liquor if necessary. Plan and go through a security check before opening. Obtain a federal tax identification number and accurately report all sales and employee salaries, including advice.

 

Components of Success

Good luck for a startup is to appear in the right place at the right time and with the right concept. Much here also depends on the season. When it is possible to catch a “hype”, it is better to use it. Turned up a successful location? Do not miss your chance.

If the founder of a restaurant startup directly depends on suppliers and uses seasonal products, he should definitely consider that their prices in summer or autumn will be lower. And at this time, you can open your own food project with a better economy, which will give odds for several months ahead.

It is most difficult to start work in the summer or in January. Most conveniently – in February, to gain momentum by the summer. Or in August-September to come prepared for the winter season.

Remember that a lot depends on the people. For example, a good manager with an attentive attitude and ability to inspire people can “take out” even a weak project with an unsuccessful location and low traffic.

Are you ready to start a restaurant business?

Having analyzed all the components of a future project, you need to evaluate the investment budget. If the calculations coincide with your capabilities – feel free to start.

If expectations were too high, then you need to revise the business model for cost optimization. Think about it: are you ready to find more investment in the project? Could it be easier to create a more economical option?

When starting a project, experts’ advice laying up to 10% of the total amount for unforeseen expenses, this will allow you not to close due to an error in the calculations, without even waiting for the launch.

You need to understand the permissible lease rate, as well as what other costs you can take on and in what volume and which ones not. Lay in the budget also all possible increases in payments, form a long-term forecast for this line of expenses for four to five years based on data from past years.

It should be noted that “single” cafes cannot afford the purchase of products at the same prices as restaurants open on a franchise. It is more difficult for them to formulate, implement and maintain standards, the quality of cooking. On the other hand, self-discovery can be cheaper and more profitable to operate, since you do not need to pay royalties and other regular contributions. That is, ceteris paribus, your business is preferable, but in a crisis, these advantages are not always easy to realize.

So, starting a restaurant business cannot be called light and “dusty”. Even if it is possible to clearly and quickly create the right concept, find a successful – passing – place, correctly calculate the economy, assemble a “dream team”, no one is immune from the risk of losing. But, the one who does not take risks, in this case, does not have dinner at his own establishment.

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Starting A Real Estate Business – An Insight on how to start a real estate business

Real estate is one of the most popular areas for investing money among entrepreneurs and individuals. All this is due primarily to the price of it, it is stable and growing along with the growth of the dollar and the change of other economic indicators. Often, a real estate business is more stable than banks, because in a crisis they can go bankrupt or you can lose some of the money due to inflation, but a house or apartment, as it was in price, will remain. Having assessed all these factors, many people who want to invest money go to contractors and buy apartments, with the aim of subsequently renting it out and making monthly profit.

REAL ESTATE AGENCY

To become an official intermediary in the real estate market, you must open an agency. In this case, the starting capital may be 2-3 thousand dollars. Over time, an agency of one person can become a growing company.

For a newcomer to the market, the minimum starting capital is at the level of 15-50 thousand dollars (the amount depends on the region). The expenses will go to the office, the minimum staff is 4 people (manager and realtors), a non-staff payroll fund (notary, lawyer), equipment, registration and advertising.

The main section of a business plan from scratch for a real estate agency is marketing. From the promotion of the company depends on the number of customers, reputation and, consequently, profit. The payback of such a project is difficult to calculate. Profits may not be available for the first 4-6 months until a good customer base is ready.

Types of Real Estate Businesses

It is worth noting that a small real estate business can be built in several main formats:

  1. You, as a private person, buy a property, make repairs there and rent it out. It also includes private contractors in the commercial sector who are building stores and office centers for rent. Leasing real estate as a business is one of the most popular ideas, especially in metropolitan and cosmopolitan cities, where people from different regions of the world come to work. In addition, there are many students who also need housing. All these factors make the market grow, and encourage people to invest in this profitable direction.
  2. You are a developer who sells apartments, offices or houses. Your goal is extensive advertising and cooperation with real estate companies. This is a business for large market players who have a large start-up capital and their own team of lawyers, economists and experienced builders. High risks, huge investments and a long period of receiving building documents scare away many beginning entrepreneurs. But there is a way out, working in provincial cities, where it is much easier to do this, the main thing is to test the demand for apartments in this region.
  3. You are an intermediary between the owner of the apartment and the person who wants to buy, rent a house. In fact, you will be engaged in the sale and rental of private and commercial real estate in your city. To do this, you will need to conclude an agreement with both parties, and for the completed transaction you will be paid the percentage specified in the agreement. All newcomers will start from this direction, and often even get a job in a real estate company, gain experience, ability to sell or lease objects, communicate with customers and probe the business as a whole.

Too many Options, but how to work on them?

As you can see, there are many formats for starting a real estate business, and you can really find yourself in one of these segments. It is important to understand that the economic crisis is forcing the constructors and contractors to follow a same design of construction to provide space for maximum customers, a vivid example of a smart apartment is with an area of ​​10 – 18 sq.m, where all the rooms are located in one space and only the bathroom is separated. The price tag for such residential properties is low and young people are willing to buy such housing. The main thing here is the ability to adapt to the market and collect a base of regular customers with whom you will work.

A win-win option is to buy a property in very poor condition, repair it and then sell it at existing market prices. You can find a similar object by tracking ads in specific publications. Moreover, the worse the condition of the property is, the easier it will be for you to convince the owners to significantly reduce the price, but the main condition is that housing should be located in an area in demand among residents of the city. In the repair, do not use too expensive finishing materials, as well as too bright colors: everything should be worthy, neatly not catchy. Depending on how efficiently you are able to bargain with apartment sellers and find inexpensive building materials for repair, you will be able to earn 30-50% profits of the amount of investment in real estate in this case. If, while you do the repair, the prices on the market begin to rise, then the profit can reach 100%.

Another option on how to make money on real estate is to open a small hostel by converting an office or your home into this type of commercial housing. Now this is the peak of popularity among visitors to major cities. After all, going to a hotel is very expensive, and spending the night at a hostel is cheap.

Most transactions in this segment are carried out through several main channels for attracting customers. Firstly, this is a personal database of clients and communication with owners of apartments, offices and other things. Secondly – this is advertising in the media and message boards. Thirdly, now the most effective tool is the Internet. A website with objects located there, contact information and customer reviews can really effectively attract the target audience. Spin up groups on social networks, all this makes your business more stable and adapted to modern market realities.

 

Conclusion

Starting a real estate business is often difficult to see from the outside. Once you know how to smartly enter the real estate market, you will understand that it does not require that much amount of money, rather it is just about getting contacts and loads of leads. This post has provided a brief insight about how to start a real estate business for which some ideas have been provided. These were only exemplary ideas and options for their implementation.

It is important to understand the general principle, but do not take everything as an instruction. In one place it will bring profit, and in another it can turn into losses. It is rather an example, a direction for imagination and general recommendations. You can find great options in both residential real estate and manufacturing facilities. You can do anything if you see the possibilities and be able to calculate options. Remember that even the most profitable business can be unprofitable if you do not understand it. And vice versa, even the most risky and disastrous business, in the hands of a professional, turns into a brilliant game, played at best!

Business, custom logo design, logo design, logo design service,

Designer Rules for a Successful Logo Design

Having said that a logo takes the face of an organization, it is necessary for a company to have an effective logo which follows the five basic principles of logo design; it should be appropriate, versatile, timeless, memorable and most of all, simple. But how do you tell that the logo clearly depicts the values of the organization? How can a good logo get you a clear picture of the company? To answer all the questions, it is necessary for a designer offering design services to religiously follow some steps to avoid revising the logo again and again just to get exactly what the customer needs. This article focuses clearly on such key pointers and rules for a good logo designer.

Identify flaws

The logo is not a cure for all problems and is unlikely to improve the product of questionable quality. But to put aside in the consumer’s memory, to induce to the first purchase, and at the same time to arouse a desire to correspond with the company’s staff, to stimulate production improvement, a good logo design can.

Brilliant simplicity

We do not urge designers to achieve the highest degree of primitivism; in recent years, logos, and so on from complex designs, have mutated into simplified forms. Such simplified forms are also be seen in vector designs like Facebook, Twitter, and LinkedIn, etc.

Aesthetics in this matter is very important, as well as dynamics and lightness. And although most customers see their whole life’s business as a difficult and painstaking multi-step (production is a multi-level process), the consumer is always set for cute and easily recognizable forms.

And since all self-respecting companies will improve their logo more than once, it is the simple form that easily adapts to changes without losing the meaning that was originally laid down in it.

Truth is born from questions

The most accessible information seems to be the most attractive. We hold our breath, watching a fascinating detective story, foreseeing its ending. When we bite a slice of yellow citrus and satisfactorily state vigorous acid, our taste buds assent: “Clear business, lemon!”

So considering the consumer of the product, if his mind guesses all the features of the product, there is no need for complex information processing. At the same time, if the product is a mystery and raises questions, a designer should spend time on answers, and therefore show interest.

Corporate style foundation

The logo design is the basis that accompanies all the visual messages of the brand. A significant flaw is that presenting the logo design to the customer, the designer places it in the center of the white sheet, without reference to other visual elements, whether it is typed text or phone numbers of the company with an accompanying background.

Here, corporate colors, image style, and, of course, a well-chosen font are all that will subsequently flaunt on advertising spaces. If the designer does not pay attention to such “trifles”, the logo he created is deprived of the right to life. The main goal of the corporate style guide is the unity of the message, bearing both the logo and the image of the company it represents.

Now it has become optimal to practice mockup – templates that substitute sketches of the future logo so that the customer can see the interaction of the logo with the surrounding visual elements. For a designer to get an effective corporate relationship, such design services are optimal to be adopted.

To work! Let’s get it up!

Professional logo services of a company logo are not anecdotes and parables about three design options, where you like one, the second is deliberately terrible, and the third (neither fish nor meat) will surely please the customer.

Think about whether all of your design creations that made you feel proud were as relevant as you thought? An intellectual and taste duel with the customer opens only the entrance to the void.

Therefore, in order to get a decent result and to hear the admiration certified by the client’s signature, the final version of the logo should correspond to the set goals and messages coming exclusively from the customer.

In the process of creation, there may be many more introductory and additional wishes, but in order not to get confused and not destroy your work, it is advisable not to lose the purpose of the logo design.

By constantly informing the client about the main informational task of the logo and your enviable desire to achieve its solution, you will cause his approval and unwillingness to bother you for nothing.

Be prepared for the fact that not everyone in your team will approve your design indulgence to the whims of the customer. For a while, you can even lose the status of a professional logo designer in the eyes of colleagues. This is not critical. In the end, you cannot please everyone, your task is to create a high-quality, long-playing logo and that’s all.