Bussiness Plan

10 Replies

Hey All,

I'm working on my business plan and have searched the internet for some templates. I'm finding that a lot of the templates and sites out there are not well suited for REI biz plans. Does anyone have any leads on where I might find some biz plan info that is geared toward REI?

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hi @Kim Handelman  

We generally started from scratch... Or adapted what we knew to meet our needs.

Generally I would recommend getting the layout of the key parts of the plan - it doesn't need to be grandiose but if you plan to pitch to investors a well thought out plan is key. 

Key portions >> outline >> start filling in details.... Make it make sense to you since it is for you in the long run. 

Any extra research or data or number you crunch to support it should be kept in a separate appendix or backup material should you ever wish to revise or when an investor want to dive a little deeper.

Depending on your plan and the sensitivity of your information determine if confidentiality is required or not.

What is your investing focus? best of luck!

-Keith 

@Kim Handelman , welcome to BP.  Your first goal is to buy a house.  A big plan may be nice after you get going, but right now you are putting off what is important which is your first purchase.  Your plans and goals will change as you move forward.  Start checking your market rates for rent values and purchase price.  Start looking for deals or for sale by owners, etc.  Good luck.

I recommend that you develop a Business Plan Outline.  Here is what I use in my business coaching business:

Business Overview

Enter a paragraph explaining the business.

The Business Model

Enter a paragraph or two explaining how the business makes money.

Services Description

1.Service #1: Describe the service

2.Service #2: Describe the service

3.Service #3: Describe the service

4.Service #4: Describe the service

Marketing Strategy

1.Describe how you will market your products or services.

2.Explain the market for your products or services.

3.Pricing products or services: Explain what is the pricing for your products or services and what the pricing is based upon.

Operations

Describe how you will operate the business on a day-to-day basis.

Finances

1.Develop a “bootstrap startup costs” list with a target budget of $1,000 or less, as well as the number of man hours projected for the first three months. Develop a marketing plan to acquire XXXX members within the first 90 days.

2.Develop sales, revenue and expense forecasts for months 4-12.Identify cash flow needs.

3.Develop sales, revenue and expense forecasts for months 13-36.Identify cash flow needs.

Once you've developed your business plan outline, next you need to determine your startup costs and your operating costs for the first 90 days, then months 4-12, and finally months 13-36.  50% of small businesses fail within the first year, not because the owner doesn't provide a good service or product, but because the owner doesn't know how to run a business.  Another 50% fail in the second year because they are under-capitalized.

So my recommendation is plan.  For those to fail to plan, plan to fail. And even if you are lucky enough to make it through the first year (and even the second year), you will not grow into a large successful company with a solid business plan and without managing your business' operations well.

God Bless You!

Some people execute better with a plan; others like to do it by the seat of their pants - do what is right for you.

I like the idea of a Business Plan - I'm thinking an Excel based business model really - where you plot out all your monthly expenses for marketing, office space, paying staff or contractors, etc.  And you can plug in some assumptions on when money will come back in that will help you understand how many deals you need, how many leads you'll need to find those deals, etc.  It's a living document that you refine as you better understand the actual metrics of the business.

Most people don't even know what you're talking about when you say a "business plan" because they have never started a business or launched a new product, etc. It can be a good tool (for people that dig plans and tools) that can help you set the right goals and expectations for your REI business.

@Kim Handelman - would you be willing to share your business plan with me? I'd be glad to review it, add to it. etc. I have built dozens of business models and launched many new products & services over my career; I'd like to work with you to create an REI business plan/model that we can share with everyone on BP. other investors, etc.

PART 1

Without a hint as to what you or your company goals and focus are, we as a group can't help much. If you are buying 1 property with Fannie Mae financing, then the bank doesn't care about your business plan. They want a completed Form 1003 and they will work for a loan broker commission... and that's all they want. When you get to >4 (or >10) then the commercial lender you deal with may want to see your plan. Maybe. They really want to see your track record, and, assuming you make it past the loan officer assistant, it will really be all about you.. and of course your finances. After a while when you hit outstanding loan balance thresholds ($500K, $1M, etc.) then the commercial lender you deal with may want to see your business plan. Maybe

Originally posted by @Chris Martin:

PART 1

Without a hint as to what you or your company goals and focus are, we as a group can't help much. If you are buying 1 property with Fannie Mae financing, then the bank doesn't care about your business plan. They want a completed Form 1003 and they will work for a loan broker commission... and that's all they want. When you get to >4 (or >10) then the commercial lender you deal with may want to see your plan. Maybe. They really want to see your track record, and, assuming you make it past the loan officer assistant, it will really be all about you.. and of course your finances. After a while when you hit outstanding loan balance thresholds ($500K, $1M, etc.) then the commercial lender you deal with may want to see your business plan. Maybe

Commercial lenders will either want to see a plan or the information that is usually in a plan although it doesn't have to been in a "plan" format. Along with pertinent information it shows a level of seriousness, preparation and credibility.