The real estate industry is a really big industry that is fast becoming one of the best options for business owners to invest in. It is a lucrative sector that brings entrepreneurs and people to the sector with large profits as big as millions when properly set up and depending on the properties and the place where the business is located. There are also several options for individuals and it is a business option for almost anybody as long as they work in the category or option that best suits them.
The real estate business typically involves providing housing facilities for individuals who are willing to get them. Housing or rather shelter is one major basic need of individuals and the real estate business provides people with the opportunity to get the kind of house they like under the best possible conditions. The business is a lucrative one and like I’ve mentioned, it’s a basic need for individuals so they’ll surely be looking to get a house and your business will help them in securing a good place.
While providing housing opportunities might be the main part of the business, it also has some options for individuals willing to get into the sector but are without sufficient capital or maybe they want to explore the options they have. The options from this industry include building and being in charge of the properties, which makes you the landlord and the sole owner of your property. Also, there is the option of managing the properties for the landlords or property owners and lastly, you can also be an agent to help individuals get a suitable building and simultaneously help property owners get clients.
With the options in the business, it is pretty clear that it is a business for almost anyone. Capital is a major deciding factor for selecting the one you’ll be involved in. One needs capital while the others don’t even require capital at all. All have the prospect of really getting individuals who venture into them with high amounts of profits.
One of the main advantages of starting the business is of course the demand. Houses are, just like I’ve mentioned several times, a necessary thing for human basic living and as such the demand for houses is high. Whether it is for sale or rent, you’ll be able to get customers for your properties without issues. People will continue to look for houses for as long as human existence goes and that not only makes it a reasonable business idea but also one that will go on for a very long time for entrepreneurs who start them if properly sustained and maintained.
Another thing is that you don’t necessarily need any kind of special skills or training to be able to properly run the business. Regardless of the type you might select to venture into, you’ll certainly have no problem working without acquiring any new skill or special training. Only a basic knowledge of what to do, how to run the business and a simple understanding of how the business works and you’re good to go. An educational qualification or prior experience might also not necessarily determine if you’ll be able to run the business. This is not to say it’s completely useless as it will even serve as an extra advantage for you.
Starting a business is not a hard thing to do at all. It’s certainly something almost anyone can venture into as long as they’re cut out for everything the business entails and they’re ready to do all the work necessary for the success of the business. Capital is usually expensive in starting up especially if you’re going to be building your properties right from scratch but despite that huge cost, you’ll still be sure to get multiple returns on your investment after a while in the business provided you get customers, you properly manage the business and you market the business pretty well.
In the next subheads, I’ll be discussing the steps involved in starting up a real estate company in Nigeria and some of the important things that will prove useful for the success of the business and to ensure you’re able to sustain it for years.
1. Research
No matter what you’ve heard someone say about a business and how well success is assured or how lucrative it would turn out, always try to do your research. The research will not cost anything except your time and that time will prove to be well spent when the business starts and the successes start coming in. It is important to do a thorough investigation about the business since you’re going to be investing your money into it and you’ve never been involved in the business. Some hours of research won’t hurt.
The research is always meant to give you an idea of what to expect and the challenges ahead to be faced. It teaches future entrepreneurs how the business works and what success means. It shows the risks involved and the ways to tackle them. It also gives ideas on how to sustain the business and work towards more success. Imagine missing out on any of the mentioned points, it’s more like being less equipped about something especially something you plan to spend money on.
There are experts in the business, of course, so also look to advice from these individuals as they are most likely the best bet for reliable information on the business. Take note of even the smallest things during the research period and pay close attention to how to stay and survive in the business. The research is as important as anything in the business.
2. Write a business plan
A business plan needs no introduction. It is equally as important as some of the other processes or things involved in the business. After comprehensive research has been conducted, entrepreneurs must now put all their ideas into paper after, of course, deciding to start the business. The business plan will cover things like the way you plan to operate, the cost of several things, how you plan to market your business, future projections and also contingency plans.
The business plan serves several purposes. In cases where individuals might need to get investors or even get a loan, it will prove useful as it will contain all that needs to be known concerning the business. It is also going to serve as a point of reference for the proposed business.
3. Select your specialty
As I’ve mentioned, there are several options for individuals to select from in this sector. All are lucrative in their way and they’ll help individuals make some money. The major three aspects include building the properties and being the landlord, being an agent, and being a property manager. You will have to select one which best suits you and you’ll also have to consider the capital at hand and if you’ll be able to do whichever one you want.
4. Capital
Capital is a very important aspect of any business as it simply indicates the start of things and also ensures you’re able to get the things for the business. In this case, for the business, the capital is always huge as you’ll need to develop new properties and then manage them afterwards. The cost of building a single house is expensive not to even mention more than one so you should be ready for this. Capital can be obtained either from savings, loans from family and friends or taking a loan from a bank. You’ll also need to get the space or location where your properties will be located. Locating it in a highly sought-after place will give you a good chance of actually getting customers and making sales.
5. Getting started and marketing
At this point, the capital and every other thing needed for the business is ready and you can now start developing your properties. After that has been done, you’ll need to market the business. Social media is very useful and effective for this kind of advertising. Referrals and word of mouth also make good advertising methods for the business.
