Archive for

Business Plan Example – Here Are Some Components For You

Anyone in or about to start a businesses needs a business plan. They ensure you have thought about the venture carefully and it maximizes your chances of success. There are a lot of things that need to go into writing of your business plan, but if you keep it simple to the main three departments of a business you can write an effective plan.

Do you know what departments every business needs? Companies, small business, global brands, partnerships, joint ventures and even one man band sole traders all have the three same basic departments. They are marketing operations and finance.

If you think of these there departments consistently, it will help you work out the questions you have which need to be answered to form a business plan. Here are some questions which you need to answer and put into your plan. It is not an exhaustive list, but it will have you get writing.

*What business are you in
*What is the market like?
*Is it increasing or contracting
*How will you stand out from the crowd and differentiate your business
*Are you starting form scratch?
*Will you buy a business?
*Will you buy a franchise?
*Will you work from home?
*Will you rent premises?
*Do you need staff?
*Do you need special licenses?
*Do you need professional memberships?
*Do you need to arrange plant, equipment or leases?
*How will you service clients?
*How will you purchase stock or products?
*How will you fund the business?
*Will you require finance?
*How long will it take to make a profit?
*What is the budget?
*What is the cash flow?
*Do you require investors?
*How will you meet you statutory obligations and meet or comply with government regulations?
*How will you grow the business?
*How will you create goodwill in the business?
*How will you plan for business succession or retirement?
*Can you eventually sell or franchise your business?

Some if these questions may not apply and it certainly is not exhaustive. It is just an example or a template of some of the popular and simple questions that need to be asked when thinking about a potential business opportunity. Remember the more detail you have here in the planning stage, the easier it will be to operate your business. Additionally it will also highlight to you if the possible opportunity is truly a viable business or not. In this way your plan can be like a crystal ball helping you see if it is a worthwhile venture or not.

It is vital to remember that not all business ideas can and will be successful as operating businesses. You may have a brilliant idea, but if people dont really want the product and there is no market for it, the business will not ever succeed.

The Top 4 Things You Must Do to Develop a Great Real Estate Investment Business Plan

1.      Use a Business Plan Template.  A business plan template is a short circuit to much of the frustrations of preparing a business plan. Probably the number one frustration is where to start as you sit in front of this blank piece of paper.  Hopefully it will take some of that away.  What you’ll do is go to each of the sections, look at the questions and answer them.  Once you’ve done that, it becomes your section.  Use it as a guide and realize you’re not going to answer every question.  Use those questions to guide you through the process.  Then there will be some editing and what not to refine it and pull it together.   If you go through each of those sections, answer those questions and it will save you an enormous amount of time. It will jog your memory and get you going as opposed to looking at a piece of blank white paper.  

2.      Do prepare a complete business plan.  Don’t cut corners or skip sections.  I would try to go through each of those sections and at least tick off the important areas.  Each of the sections has important elements to them.  I don’t think there are any you could eliminate.   Make sure you spend a few minutes on each one of those sections.  Obviously some sections will have a lot more depth to it.  Other sections will be shorter and more concise but don’t skip any of them.

3.      Do highlight your skills and experience. This is evolving the credibility kit.  Be sure to develop a well done and well thought out credibility kit including a personal bio, testimionals, pre and post deals and references.    

4.      Do research on your local marketplace.  Know your prices and rental rates. Be the expert in your market. We talked on Tuesday about markets that are 15,000 – 30,000 homes. That’s about the right size where you can become the expert in your area.   You know what I used to do on a Saturday afternoon? I would drive around my neighborhood, and when I saw a for rent sign I would dial the number right then. I would ask about the rent. It’s amazing what a skill set you develop by doing that for an hour or two.   Call 15 to 25 properties and you’ll be amazed at the amount of knowledge you get and the skill you get in terms of what your neighborhood and streets are going to rent for. I know it’s a lot of work sometimes, but it’s the groundwork by which you become a real estate expert. You want to become the expert in your town and location and have skills and strengths that nobody else has.   That’s some of the legwork that you have to do. When you develop that expertise, strength and knowledge, it’s almost like an attraction. Private lenders will want to invest with you because they will sense that you obviously know your market better than anybody else.