How to ace a property business plan
INSPIRATION on HOW to WRITE the perfect Property Business Plan
You found the perfect property deal! Congratulations!
But...just before the crack the champers, how do you plan to pay for it?
Ah, simple! You raise the finance.
Everyone knows nothing lays the groundwork for success like a well-written business plan.
But how?
How do you create a comprehensive, clearly articulated business plan? One that describes what you plan to do and how you plan to do it.
A business plan is inherently strategic. It is forward looking. It describes your current situation. And it paints picture of how you plan to move towards your end goal. Don’t use long complicated sentences, unless you have to. A good business plan can be your most powerful tool.
HOW DO YOU CREATE A BUSINESS PLAN THAT WILL HAVE THE BANKS OR ANGEL INVESTORS THROWING MONEY AT YOU?
Start off with the EXECUTIVE SUMMARY.
This is a brief overview of your company:
Location
Owners
What do you do?
What are you planning to do?
Keep it brief, 4 paragraphs should suffice.
Now move onto your BUSINESS OBJECTIVES.
Use bullet points to list five or six key objectives.
Next up: MISSION STATEMENT.
Create a powerful, emotive statement. Outline common fears and how you plan to address them.
For example:
“One of the largest mistakes made by new real estate investors is in poor property selection. Even worse is their tenant selection process, often with little or no background and credit checks. At QT Developments, the owners are extremely devoted to their business and their commitment to the long term can be seen in their extreme dedication to both their properties and their meticulous selection process of finding long term tenants “
Then, GUIDING PRINCIPLES. List at least three principles using these thought triggers:
What drives your company?
How professional are you?
How committed to quality?
To progress?
To adapting to an ever changing market?
Moving onto KEYS TO SUCCESS.
This section can be brief, two will suffice. Think strong, focused management. Think clear evaluation of deals before decisions are made.
For example:
“QT Developments is fully committed to make its rental property business a long term success with future plans for expansion. It is this dedication and drive which will set them apart from their local peers.”
Let’s discuss the COMPANY DESCRIPTION:
When were you founded?
Who owns the company?
Go into various sub chapters here such as:
Ownership
Start up summary
What about LOCATION:
Where are you planning to invest?
Why there?
And FACILITIES:
What does the area you plan to invest in offer?
What is the growth potential?
Is there strong rental demand?
Finally…PRODUCTS
Products/services descriptions: what do you do that set you apart from the competition?
Competitive comparison: what is available to rent within 1km. within 5kms. Show high demand.
Make sure the finishing touches are professional
Check that the type font is consistent
Zero tolerance for spelling mistakes
Include pictures where relevant
Bind the document with a simple, clean cover
Spend time contemplating the headings outlined above. Use them to structure your thoughts. Use them to craft the perfect, comprehensive business plan.
That’s it! You are all set for success!
