Yes, ANOTHER question like this..
I am curious to know what your business plan is.
I would like to have as many people chime in as possible on this
What is your goal for your company?
Do you even have a business plan?
Let's hear it!
A business plan is an excellent document. Yes, I have one and I use it. A business plan contains details about the operation divisions of your business. (marketing, sales, operations and finance)
Anyone can write a simple business plan and I highly recommend doing so when starting a business. As the business progresses the plan can be altered and improved upon simultaneously. It makes sense to create a guide to follow. It is critical to know where you are in order to reach a destination.
Another benefit of a plan is to help you make business decisions. Budgets are a part of the plan. As a quick example, how would you know how much money you have available to spend on phones, advertising, marketing, etc. if you do not have a plan in place for the allocation of funds? Investing in your own business is a wonderful endeavor. Take time to plan and map out the course you want to take as the head of your business. At the risk of using a cliche, "those who fail to plan, plan to fail."
Please feel free to contact me directly if you have questions.
you can waste all the time you want to create a plan and hope to use it one day. or you can go and buy a property to flip or rent.
on the bright side, if the plan is thick enough it can be used as a door stop.
love what George P. had to say!!!!
Seems to me that making a biz plan sounds like a good professional idea and may work for some people in some ways but honestly....... In many ways seems like a waste of time overall. How will you know what opportunities will come up in the future and if you will jump on them or not...???? What will you do, say "oh I can't do that because it isn't in my biz plan", or "gee this is a screaming deal but before I get this deal under contract I need to change my biz plan again so I know what I'm doing"??? Answer is NO!!!
Define some direction to start out in, one that's comfortable, know what you know and know what you don't know, and start figuring things out. Get a deal under your belt, redefine things, then pursue another deal. As a person matures as an investor different paths will appear and either be passed up or followed depending on where a person wants to go and how they want/can get there. I don't see how plans mean shi..... I make plans all the time, daily, and then the natural course of events tends to dictate how closely those plans get followed - they don't last very long.
Goals on the other hand are great!
I guess I would question whether you are partnering with someone. If one is going into business by themselves then a plan might seem wasteful, but if you are going into it with partners or trying to find partners a business plan sounds more necessary.
Thanks @Thomas Hart ,
Funny you say that because I myself have a business partner and we absolutely policize EVERYTHING. It is mandatory, no exceptions.
Any Washington State folks wanna chime in on this topic? I'd like to get a local take on this topic as well.
Everett, Seattle, Federal Way, Tacoma, Olympia, maybe Portland or Oregon in general?
I've never used a business plan but I see the benefit of one if you are working with a lender or a business partner and they want everything in more detail. I plan on owning my properties until I die and passing them along to my kids. Until then, I plan on adding to my portfolio to increase cash flow until I have hit the cash flow goal I've set. I have criteria on the types of properties I purchase, but again those can be adjusted based on the actual numbers of a property. This is in summary...my business plan!
This reminds me of a DFMEA in the engineering world. It is a document that is created during the design process to define and address any foreseeable issues. It usually doesn't mean much after the design is completed, it is just a formal tool used to help think through the whole design in detail. These can be used as door stops once they're finished, but can be a very helpful tool to guide the engineer through the details initially.
I think a business plan can be very helpful insofar as is it used as a tool to help you think through your business, not necessarily as a set of rules that dictates the decisions you make.
1. A budget for rental operations
2. A formal analysis for each acquisition as they present themselves
3. No business plan for my future acquisitions since each opportunity is so unique that it blows all my estimates and assumptions out of the water.
I have an "informal" business plan, not something totally written down. I want 100 units, all cash flowing an average of $100 per month. How I get there... that's the fun part !
Free eBook from BiggerPockets!
Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you