Business Plan necessary?

Question

I have read a couple of discussion about creating a business plan for this flipping business. A lot of newbies needing help with missions statement and their overall goals in their real estate investing journey. And some of the responses from pros and experienced investors are saying, jump in play in the water get your feet wet. Take action and not waste time on sounding like you may be a great entrepreneur. I agree that taking action is the best way to start your business I also believe that if you fail to plan, then you plan to fail. With that being said, is there another possible method of outlining your potential goals other than using a business plan?

Danielle Jones · Answer

thank you Erik for your feedback . Is it more necessary to create a business plan to get potential cash investor interested or more for your own personal goal setting.

Erik Hitzelberger · Answer

A full-fledged business plan may not be necessary, but writing and honestly assessing your goals is something you should certainly do.  I also prefer to break down goals into achievable tasks.  For instance, if your goal is to make $100k flipping houses this year, figure out 1) how many houses that is, 2) how much money you are going to need to fund that many rehabs, 3) how many offers you need to make to get that number of properties under contract, 4) how much time all of this is going to take, 5)....

If you go far enough, 1 of 2 things will happen.  You will either have a detailed and actionable plan to achieve your goal or you will find one or more issues (lack of time, lack of money, lack of contractors, etc) that will cause you problems.  In the latter case, either find a way to address the problem or modify the goal.