Have you been bitten by the real estate bug and feel ready to take the next step? Learn how to write a business plan for your Detroit investment company so you can procure new funding options.
Just like any other business, it is important to have a plan for your investment company. It is very rare that success comes without careful planning, and your investment business is no exception. Your plan will be used to set the tone of your business. To define how things are done today and in the years to come. It will be a source of reference as you add people to your team. Below, we offer some tips to help you create a business plan for your investment company in Detroit!
Start With The Basics
Your business plan should include a few different sections to define your business and what you wish to achieve. A few of the sections to include are:
- Your mission statement
- Your business goals
- Your expected timelines
- Your strategy to meet your goals
- How you will qualify investment opportunities
- How the properties will be managed
- Your marking plan
- Your financing plan
- Your current financial state
- An exit plan
- How profits will be managed
Of course, there are a number of other sections and details that can be added to your business plan for your investment company, these are just a few. Below, we will break them down into a little more detail.
Your Mission Statement
While it may no longer be necessary to include your mission statement on your resume, your business plan is a different story. Your mission statement should include the purpose of your business, the services you provide, and the benefits you can offer. Your mission statement should clearly state what you do and why.
Within your business plan, you need to outline the goals for your investment company. Whether they are large or small, lay them out as detailed as you can. This will not only help others to understand what you are doing, but it will also help you stay on track to achieve what you had set out to do. Writing your goals down makes you more likely to achieve them, so getting detailed about them in your business plan will only serve to benefit you!
How do you plan on going about achieving those goals for your business? Your business plan for your investment company should clearly outline how you propose to get there. Are you flipping houses? Reselling mobile homes? Developing land? Whatever it is, define what you plan to do and how you plan on doing it. Remember, as the market changes, your needs change, or new opportunities become available, you will always be able to modify your business plan accordingly.
How do you plan on funding your deals? Are you using saved funds? Borrowing from a bank? Or partnering with other investors? When creating a business plan for your investment company, you’ll need to clearly outline how you intend to make your investments. If you are using your business plan to help you acquire private money, don’t be afraid to write that down in this section.
How do you plan on marketing your investment business? In order to acquire properties, people need to know who you are and what you can offer them. In your business plan, be sure to note how you plan to market to find deals as well as how you plan on finding renters or buyers for your properties after the acquisition.
Your Exit Plan
Whether or not you wish to enlist the funds/help/time of others, you will need to outline an exit plan to be used should things not go as you had hoped. A savvy investor will have a solid exit plan they can enact to immediately get them out of their difficult situation and away from their investment obligations. If something goes wrong or if another opportunity arises, you will need to be able to get out with as little negative impact as possible.
Once you have created the business plan for your company, its time to put that plan into action! As your business grows, this will be a document that you refer to time and time again. As your business changes or new needs arise, you can always add or modify your document. Your business plan can be used to obtain funding from outside sources. It will show what you and your company are all about! Once you are ready to find the deals to fulfill your plan, our team can help! We will help you find the most profitable investment properties in the Detroit area.