OK, here is the deal.
My business partners and I each have particular strengths in Real Estate Investing.
Me and Another Guy: Putting Multi-unit Development Deals together.
Another Guy: Marketing For and closing pre-foreclosure deals.
Here is the homework problem:
You can find more deals than you have the cash or credit to do. In addition, because you have been doing this for a while, other investors, agents, birddogs, mortgage brokers, etc. bring deals to you.
You create cash flow by buying properties at a substantial discount and can come up with the cash to do them. You have some homeruns from putting development deals together such as condo developments and land subdivision deals.
You have a pool of investors or 1 big investor who has $10M in cash or credit who will be the funding for your deals…if you can convince them with the right business plan.
How do you set up your business plan?
Chip,
A business plan is nothing more than a written representation of your business. These can be nothing more than scrawling on a napkin on one extreme or a multi-volume set of books for a large international business on the other extreme.
For your business, you probably need a 5 to 10 page document detailing exactly what you do, who’s involved, and how you will make money. For your purposes, a business plan is basically a sales tool that you will use to obtain financing.
There is no one-size-fits-all to business plans. I have written business plans for many businesses and even government organizations and each one has a different purpose. Here’s what you need to answer to be able to write your business plan.
- What is the purpose of writing your business plan?
- Who will read your business plan?
- Who are the key players in your business?
- History of your accomplishments
- How your business will operate
- How you will make money
- Growth of the business
- Timeline
- If your business plan is meant to acquire an investor, how the investor will make money
and how he will be protected.
The business plan IS YOUR BUSINESS to the reader. There should be very few spelling or other errors. The business plan must be believable and real world. A sophistocated investor can smell B.S. a mile away.
Good Luck,
Mike