What needs to be on a Business plan

Question

Hey guys me and my partner are trying to create a business plan but we are struggling with what exactly needs to be on it. Can you guys tell me what are some of the things a plan must have because right now i feel like we have way too much information on ours.

Joe Villeneuve · Answer

It's more important to start with where your financial goals are...and I don't mean "I want to flip this many properties and hold this many at the end of a year".  Those are not goals, plans, or have anything to do with planning.  They might be a summary of what you did during a year...but that's after the the fact.

A Biz/REI plan must start with the financial Goals you have.  These goals should be very simple:

1 - You need to pay off all your personal debt2 - You want to have enough passive income to cover all you monthly bills3 - You want to accomplish this by a specific date.4 - You want to have fun doing this.

Once you set these numbers, you "reverse engineer" from there, establishing as series of groups (elements of the steps above) called "measurable milestones".  In between these "milestones" you establish profiles of properties based on the criteria needed to accomplish these "milestones".

Note right here that as you go from milestone to milestone, the criteria/profiles will most likely change.

Now you take those "profiles" and use them to analyze/find the markets you need to invest in.  Then go find those markets, camp out there, and execute the plan.

What I just described above is my system that I do, and teach.  I feel it is so important, I designed software to analyze, plan and execute it.  It started as simple forms to help me, then before I knew it...

My suggestion is to follow the reverse engineering steps I laid out above, then when you get to the beginning, turn around, and "follow the breadcrumbs".

I saved the most important rule for last.  Don't stray from the plan.  Don't go after "shiny objects of distraction".  You will fail.  Stay the course.