Writing a business plan allows investors to determine their real estate objectives. The primary purpose of creating a plan is to develop a road map for starting or expanding a successful business.
A strategic plan helps investors establish goals and determine a plan of action. If you are uncertain of which direction to take your real estate business, strategy planning software can help you determine a niche.
Some real estate business software is pre-programmed with questions about various types of investment opportunities. These questions are designed to help users decide if they are better suited for retail or commercial ventures, rental properties, house flipping or wholesaling.
When developing your concept, it is important to stay focused on the requirements of your business. For example, a start-up company will have different needs than an established business.
Writing a real estate investing business plan requires time and patience. This is particularly true if the plan will be used to obtain start-up capital or expansion financing. On average, business plans consist of 20 to 30 written pages which include charts, graphs and financial projections.
Typical plans focus on seven topics and should include the following information:
1. Executive Summary - In most cases, the summary is the first thing investors, lenders and potential business partners will read. The executive summary should be concise and contain attention-grabbing information while summarizing the overall plan.
2. Mission Statement - This section expresses the focus of your company, what you stand for, your target market, and what sets you apart from competitors.
3. Products and Services - Provide a detailed explanation of the products and services offered through your real estate business. Do you buy houses in a niche market? Can you guide people through difficult situations such as bankruptcy, foreclosure or short sales?
4. Market Analysis - Utilize graphs and charts to emphasize specific market analysis. Discuss both present and future trends and describe how your organization will capitalize on those trends.
5. Strategy and Implementation - Detail strategies which will be implemented to develop a successful and profitable business. Explain your real estate goals and how you plan to achieve them.
6. Management Team - Whether you plan on establishing business as a sole proprietor, partnership or corporation, it is important to include a resume of your management team. Include details of each member's qualifications, experience, and duties they will perform. Even if you are flying solo, chances are you will require assistance in some areas.
7. Financial Projections - Considering real estate is a turbulent market, this step can be one of the most challenging. Use the information provided within the previous sections to assess financial projections. If the presentation will be used to obtain financing, include sales forecasts for a minimum of three years.
Writing a business plan can appear to be an overwhelming task. Breaking it down into sections makes it more manageable. Real estate business plans are intended to provide insight for developing and expanding your company. They are not written in stone and should be reviewed three to four times per year to ensure you are on track.
(Expert=Simon_Volkov)
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