The First Step in Starting Your Real Estate Business

“The journey of a thousand miles begins with the first step.”

– Chinese Proverb

By Ernesto C. Perez II

Starting a real estate business is not as easy as it seems. For me, the process of applying for the necessary permits is but a product of a long and tedious process which I will reveal below.

I wrote this article to assist other licensed real estate service professionals and shorten their time in being able to get their business registered at the soonest possible time.

Last August 2011, I went to the Provincial office of the Department of Trade and Industry (DTI) to have my business name registered so that I can have a Certificate of Business Name Registration, which was a requirement for registering with the Municipality of Indang for a Business (Mayor’s) Permit as well as with Bureau of Internal Revenue (BIR).

I thought that as soon as I have that certificate it will be a simple process of submitting documentary requirements to the appropriate government agency. But, I was made wrong. It took a lot of thinking and planning on my before I could register my real estate business with complete confidence.

I chanced upon a document which was published by the DTI in cooperation with the Japan International Cooperation Agency (JICA), entitled “Starting A Small Enterprise.” I got the said document when I was still employed with government in 2005.

When I read it, I learned that prior to registering your business there were SEVEN (7) steps that need to be done first and foremost. I have gone through it and it’s a process that helps a person who doesn’t know yet what business he/she would like to engage in. But for our purposes, all of those reading this will want to know how to set up a real estate business in the Philippines.

But, if you need to go through the Self-Analysis step recommended by the DTI publication, just click the title of the document above.

It goes without saying that prior to starting a business one really needs to set his/her goals so that success or failure can be measured. I also posted an article entitled “Goal Orienting for Real Estate Service Practitioners” previously which tackles goal setting tips for real estate service practitioners.

But before setting lofty and ostentatious goals for the business you are about to start, Ian Gordon suggested that one should define your definite major purpose. In an article he posted last June 15, 2008 in his website (www.startupdaddy.com) entitled “Starting A Business: Define Your Definite Major Purpose & Envision Your Desired Outcome” he had this to say, which in mind could be the real first step in starting your real estate business, or whatever business for that matter:

“Before you start doing the things, the tasks, required to start a business, I suggest you spend some time doing some serious thinking and planning. Not just setting specific goals, which is important, but higher plain stuff. The things David Allen call 50,000 feet thoughts – career, purpose, lifestyle.

“There is a very famous book by Napoleon Hill, called Think and Grow Rich. It’s one of those books that most successful people I know have read. In his book, Hill presents his concept of the Definite Major Purpose. It was a challenge to his readers, to ask themselves “in what do I truly believe?” You need to define this, and make sure whatever business you decide to start, is aligned with this purpose. If your business is in some way aligned with your core values, or doing something you truly love, you will have passion in your work. Passion always comes through, and greatly increases your chances for success.

x          x          x

“There are a lot of people who start businesses in a niche because they think it will make them a lot of money. They know nothing about the niche, and have no interest in learning anything about it. This can work, but I highly discourage it, especially for your first, or primary business. LOVE WHAT YOU DO!

x          x          x

“Love what you do, and your passion, your enthusiasm, will come through in your work. People respond to that. So if you are trying to figure out what business you want to start, begin by making a list of things you like to do, and things you know about. You will be surprised how many great business ideas appear on that list.

Once you decide what business you are going to start, envision the outcome you want.  Picture the lifestyle it will bring you.  Imagine what you will do with the money you will earn.  Be as specific as possible.  Don’t think this stuff is important?  Ask any pro athlete or any successful person you know.  This is not only important, it works!  When you picture in your mind, the outcome you want to achieve, you make a connection to the outcome.  It becomes something real, and on a subconcious level, it becomes your reality.  You know you can do it, because it is something you have seen.

In our case, I am assuming that we love brokering. We love go to different places to view the property and get familiarized with its features prior to marketing it. We enjoy the negotiation part, as well as the closing part of the deal. We enjoy dealing the entire process of consummating the deal and receiving our just reward – the professional fee.

However, there may be those licensed real estate brokers who may not feel the same way the majority feel. I suggest that they do some soul searching and determine how they can contribute to the betterment of Philippine society.

You got to have heart. You go to have good or excellent people skills to become an effective broker-entrepreneur. I guess if our core values as a human being are aligned to the business we are engaged in then success will most necessary come. And with success comes a realization that what you are doing is really not work. It is something that you truly enjoy doing – being service to others.