Should I create a baseline template business plan?

Question

Should effort be placed in a baseline business plan to determine the best option to start in for this field?

Chris Seveney · Answer

@Tonio Pearce

Yes you should create a business plan. For my I recommend regarding the book traction and creating a one page business plan. You don’t need a 50 page llan you will never refer too but a one pager with actionable items is my recommendation

Jonathan Klemm · Answer

That might be a sign @Tonio Pearce!  The Vivid Vision exercise really does work - but it takes some VERY INTENTIONAL time.  Plus, we revise the vision yearly at QB, our Chicago General Contracting Business, because it is constantly changing, and it's not my vision...It's the business's vision.

You can do a business vision or a personal vision.  For the personal side of things, I do a GoBundance Onesheet, which breaks my life up into Financial, Health, Relationships, Friends, Adventure, and Spiritual/Contribution.

Happy to share either document with you if that would help Tonio!

Tonio Pearce · Answer

You are the second one that mention the "Vivid Vision" and I am actually viewing the book right now. Thanks for the advice.

Tonio

Edwin Watson · Answer

Absolutely, creating a baseline business plan is a crucial step when starting in real estate (or any field) because it provides clarity, direction, and a strategic foundation for your efforts. Taking the time to create a baseline business plan forces you to think through the "why," "how," and "what" of your real estate endeavors. It sets you up for a more focused, confident, and sustainable start. Even if you adjust it over time, the effort spent upfront will pay dividends as you build momentum and make informed decisions in this field.

Jonathan Klemm · Answer

Hey @Tonio Pearce - If you don't have an end destination, you won't know which road to take.

If you can create a longer term vision (5-10 year) for your business, you can slowly back in next steps for (1 year, qtrly, weekly).  That is exactly what traction helps you do that @Chris Seveney pointed out.

It doesn't have to be perfect, but just getting something down on paper will be a huge help - at least, that's what I found when I started our Chicago general contracting business.

I actually read Cameron Herold's "Vivid Vision" and wrote our business vision out on a mountain in Arizona...you can still see that vision on our website today!

Tonio Pearce · Answer

Thank you for the honest response and provide sound advice. I am not working in the areas you are in. However, I will taken on any advice given. I will work and the business plan and I know i will be seeking more advice once its done.

Tonio

Julian De la Guardia · Answer

Look, I get it.. you’re standing at this starting line, itching to get your first.... or next.... investment rolling, but all the advice floating around feels like someone’s reading off a stale script. Let’s be honest, I’ve watched folks who jump into this game as if playing roulette.. firing off offers on duplexes in Phoenix or leaning on some “sure-thing” house hack in Austin without ever sketching out their plan. That kind of shoot-from-the-hip approach can be fun for a minute, but it usually ends up like my old buddy Rick’s first deal.. he bought a distressed fourplex in Tucson years back without a real plan, and while he eventually turned it into a solid monthly cash flow, he spent the first six months sleeping with one eye on the tenant ledger, praying the HVAC wouldn’t bail on him after a hot desert day. A simple baseline plan might’ve steered him toward properties with more reliable maintenace histories or a stronger neighborhood profile, saving him a lot of sweat. And just the other day, I was grabbing coffee with a friend who reps a group of invsetors out in San Antonio.. they got burned early on by not clarifying their rental criteria, picking up a triplex that sounded good on paper but turned out to have a revolving door of problematic tenants.

A baseline business plan isn’t just a mind-numbing exercise.. it’s the guardrail that keeps your momentum from swerving off into the ditch. Think of it as the rough sketch that helps you figure out where you want to swim: Omaha’s stable single-family rentals with decent cash flow and strong appreciation potential, the sizzling up-and-coming pockets around San Antonio where off-market deals still lurk if you’re willing to roll up your sleeves, or those tight-knit Chicago neighborhoods where a trusted investor-friendly agent can point you to contractors who won’t ghost you mid-reno. I remember working with a client a couple of years ago who wanted to do a 1031 exchange into Phoenix multifamily.. they had some numbers in mind, but no framework beyond “I want more doors.” After we drafted a bare-bones plan that considered their timeline, target rents, and capital reserves, they honed in on a medium-sized complex managed by a local group.. from what I’ve heard, these guys had impressed other out-of-state buyers before and delivered on their promises. Without that baseline plan, we might’ve ended up playing Whac-A-Mole with random listings and half-baked projections.

I’m not pitching perfection here. Plans evolve. Markets shift. Even now, I’ve got clients in Austin who started off focused on short-term rentals and suddenly found multifamily syndications more enticing after running the numbers and chatting with other savvy folks in my network. But having that initial plan- hell, even a scribbled outline on a napkin; will give you something to pivot from when the market throws a curveball. It’s not about chaining yourself to a rigid model; it’s about giving yourself a reliable starting point, so when the next tempting deal in Phoenix’s midtown corridor pops up, you know it fits into your broader strategy rather than just hoping it’ll magically work out.

At the end of the day, nobody’s going to knock on your door and hand you a neatly packaged portfolio. If you’re asking whether to lay a baseline plan, I’d say you should, if only to save yourself some of that restless confusion that hits at midnight after a marathon Zillow session. And if you’re aiming to step into these markets. Omaha, Chicago, Austin, Phoenix, even San Antonio-I’m always keen to chat and share what I’ve learned from two decades of navigating the twists and turns of this world. Just don’t feel like you have to walk into the arena blind. A loose plan in hand is better than a dozen frantic Google searches, trust me. I’m a licensed agent in multiple states (my Arizona license number’s on file if you need it), and while I’m not your attorney or accountant, I’ve seen more real deals than I can count. Working with someone who’s already plowed through the weeds can spare you those headaches and keep you from feeling like you’re reinventing the wheel every time a new opportunity pops up. Anyway, I’ll leave it there; it’s your journey, after all, and if we’re going to kick this can together, I’d rather see you show up with at least a rough map in your back pocket.JulianTurning investment visions into REALITY in Omaha, NE - Ranked #1 city to move to by Forbes Magazine.

Tonio Pearce · Answer

Thank you for the advice. I will take a look at it as well.

Henry Clark · Answer

OP.  The obvious answer is yes.  But you said to the first responder, not working in that field.  If you could be more precise, you will get better responses.  Make 80% of all your failures on paper first.

Should I create a baseline template business plan?

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