starting to think writing business plan is the hardest part of opening a business

10 Replies

I am great at talking to people, holding conversations, and explaining what we are doing and how we are different from most flippers. However I am horrible at putting it on paper. I am not a writer! I don't want to go pay from someone to write it for me since we are just starting out and I want the experience, plus any extra money at the beginning helps. So I have put together a rough draft and now its time to prefect it. So here is my mission statement and vision statement. please be brutally honest about you think.

Mission statement

To buy real estate that is in rough condition at a reduced price for the purpose of remodeling and selling for the largest profit possible.

vision statement

I use my construction knowledge, contracting skills and managerial skills to accomplish financial freedom in a profitable real estate business that allows me to do what I have a passion for.

I've often wondered why people think they need this?  A bank has never asked me for it?  I've never had anyone ask me for a business plan.

What is the goal of doing one?

Make sure you aren't doing busy work for your business and not out doing your business.  I got caught up with making a  logo, website, business checking accounts etc..... and not doing my business.

@Shawn Thom

 Could not agree more. I believe in business planning but find "writing a business plan" to be an exercise in business masturbation versus going out and doing the real thing. Set a goal, go do a deal and repeat. 

@Jared Borgwardt

Ever tried steering a parked car?

You're mission statement and vision are fine just go execute...Why do you need the written plan? Better to write down your goals...I am buying one house by 07/30/2015 that is 70% of it's ARV less the rehab costs. I will rehab it and sell it by 10/30/2015.

Then write a list of anything stopping you. Then what are some various ways to overcome those challenges. I don't know about you but that writing assignment fires me up a lot more then the other.  

David O., Bridge- Turnkey Provider

As a lender / investor I would want to see something like this on paper.  Is that your goal @Jared Borgwardt ?  Writing a business plan is not a complete waste of time.  We learn a lot about ourselves and what we are trying to do that way.  Just don't let it stop you from getting started.

My mission and vision, personally, also involve my passion for helping neighborhoods, homeowners and tenants.  I would have got sick of fixing, landlording, etc a long time ago without it.  If you are just fixing things to re-sell, why not bikes, cars, skateboards?  If passion doesn't meet vision, I wouldn't invest.  

Throwing my hat in with what the others have said -- I've been in real estate for 12 years and never worked on a business plan until recently. It's a lot easier to put one together when you know what the parts you're describing are and how they work. Unless you're hoping to attract outside investors you won't need a formal plan, anyway.

On the flip side, writing an informal plan can give your efforts focus and help you be more certain of what you're doing, but don't let that keep you from starting if you've got the rest of the pieces waiting to get put together.

Medium mogul logo web smallPeter MacKercher, Mogul Realty | [email protected] | 314.210.4414 | http://stlmogul.com | MO Agent # 2010004223

Thank you all for the advice. I Wish I could go without a business plan unfortunately the 2 investors we are going to be meeting with want to have one to refer to. My passion comes from seeing what can be done and making it happen, trash to treasure. I have only done 1 house for myself and that is my family home. Seeing how much I would profit from selling my house has brought this to reality. Knowing I could do this for a living instead of commercial construction would give me the freedom and feeling of accomplishment that my current employment cant offer. I think I need to just go with the flow.

Originally posted by @Jared Borgwardt :

I am great at talking to people, holding conversations, and explaining what we are doing and how we are different from most flippers. However I am horrible at putting it on paper. I am not a writer! I don't want to go pay from someone to write it for me since we are just starting out and I want the experience, plus any extra money at the beginning helps. So I have put together a rough draft and now its time to prefect it. So here is my mission statement and vision statement. please be brutally honest about you think.

Mission statement

To buy real estate that is in rough condition at a reduced price for the purpose of remodeling and selling for the largest profit possible.

vision statement

I use my construction knowledge, contracting skills and managerial skills to accomplish financial freedom in a profitable real estate business that allows me to do what I have a passion for.

It surely doesn't hurt to have one to utilize as a focal point on where you want to be in said time frame and how to go about getting there. Some lenders may ocassionally request that you provide a business plan. Likely to see how serious you are and how much thought you've put into it. The beauty in it is, it can be adjusted quarterly or annual as you see fit. 

Some people are good with just calendar 'todolists'  be it weekly or monthly. That's a good exercise to do also. Like the saying goes: Plan your work, work your plan. Fail your plan, you've planned to fail.  

Here's a link that can help you pick up where you may be stuck: 

http://www.thereibrain.com/your-real-estate-busine...

Kudos,

Mary

I agree @Mary B. I am trying to figure out even where to begin with a business plan, being that I am in need of a lender to assist with future flips.  When using OPM, you should always have a business plan well thought out so that they see you are serious about your goals.  Going into something "empty handed" just shows you're not prepared, and not serious.  

@Jared Borgwardt I couldn't disagree more with other comments. Making a business plan is a great way to fully flesh out your ideas and make sure your numbers work. I always make a business plan for my investors, but I always get more out of it than they do

Medium logoJason Hirko MBA, Corridor Funding | [email protected] | (512) 560.7985 | http://www.corridorfunding.com

Originally posted by @Soleila Gonzalez :

By the way, @Mary B., I see your post was over a year ago, how are things going?

Hey Soleila,

Still working the plan, though I haven't touched it in some time, I may need to tweek it a bit for the coming years... imo, after its written all that matters is working it thru to success.

Kudos,

Mary

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