If you want to truly succeed in real estate investing, you can’t treat it like a hobby. You have to approach it like the business that it is – a legitimate, revenue-producing entrepreneurial endeavor whose failure or success depends solely on you.
Sounds kind of…intimidating, huh?
It’s not really…so long as you know what you’re getting into. To do this, you need a plan. In fact, having a solid plan in place about how you’ll run your turnkey investing business is one of the first steps to success in this industry. A business plan offers the ideal format for this.
With a well-organized business plan, you essentially have a detailed guidebook on how you’ll run your business, who will be involved, your timeline for meeting particular goals, and much more. Here are some of the parts a good business plan has:
- Your mission statement
- Your goals
- Your investment strategy
- Your timeline
- Market analysis
- Property criteria
- Marketing strategy
- Financing options
- Current and estimated financials
As this list demonstrates, a good business plan is one that is thorough and covers the gamut of your business. Now, if you you’ve never developed a business plan before, you may be thinking, “How on earth do I even do this?” Luckily, it’s not nearly as complicated as you think. While the how-to aspect of actually writing a business plan warrants an article all on its own, I will say this: There are TONS of sources online for you to explore when writing your plan. Review the plans of other investors, and take a look at some of the tutorials that are available. By studying these, you can formulate a plan that not only includes all the pertinent info, but is also tailored to your unique business.
Now you may be wondering why one would even go about this, when it’s obviously going to take valuable time away from all the other things that need to be done. Here’s why: because it will help you succeed in turnkey investing. As I mentioned, a business plan is sort of like your own personal guidebook, and every good investor knows that having a directory of sorts to turn to is advantageous. Some of the ways that a business plan can benefit you include:
- It’ll narrow your focus and help you better define goals that are realistic and achievable.
- It’ll help keep you on task.
- It’ll help you make better decisions, as you can refer back to it to ensure that what you’re doing is in line with your objectives.
- You’ll be able to better prioritize your tasks.
- Tracking results will be easier as you have, in writing, the current and projected figures associated with your business. You can also analyze these results to make corrections as your business progresses.
- It will be hugely helpful if you need to finance your investment, as lenders will look more favorably on a person who has a detailed plan in place. In fact, some lenders will even require a business plan before they’ll agree to a loan.
So to answer the question that is the title of this post, yes, you need a business plan for your turnkey investment. There are a number of benefits to having one, and the more thorough you are, the better. So what are you waiting for? Start researching and then get to writing!