You may do your property business on the side, on top of your full-time, day job. However, that does not mean that you can simply “make it up as you go.” Especially when you’re just testing the waters in the world of property business.
It’s extremely crucial that you have a business plan of sorts. While the name may sound fancy—business plan—it really is just a record of many things integral and relevant to your business.
A business plan is extremely crucial at any stage of your business
Writing down your business plan is something you need to do first thing, and something you need to keep on doing.
The medium of writing can be anything, really. If you like it seamless and easily transferrable anywhere, you can start in your smartphone or your tablet. If you want a no-nonsense way of recording, the traditional form of a hard-bound journal may be ideal for you.
Chose whatever method you’re most comfortable with using.
Your real estate business plan is more than just an initial plan
Simply put, it’s not a document that stays stagnant. Your business grows and evolves, your business plan does as well. It’s a living and breathing document.
Business plans would likely go beyond just planning but also recording your process and progress as well.
Get ready to jump into the habit of journaling for your business
As your real estate business grow, so does your business plan. This document is like a record of your journey to making sense of the whole complex scheme that is the property business.
As your business grows and you’re even more adept at recording your progress and such, you may even have separate business plans that serve a specific purpose on its own.
From market assessment to business strategy
Your business plan is your friend. Having a business plan will help you tremendously. From an initial assessment of the market to assessing and determining your potential target market, those are merely a handful of things you need to plan well.
For starters, you can start your business plan by determining the area you’d want to work in.
This can be anything from a neighbourhood to the general price range of the properties. This will then intimately tie into the insights of your target market.
From then on, you can work on defining your clients, the type of real estate, and what type of agents you need to network with in order to achieve all these. And this is merely a glance to the process of drafting your business plan.
Recording your expenses—both personal and business expenses
Now we get to the hard-evidence; the numbers. Without this record, you’ll probably be going barmy.
And no, simply your bank statement won’t be sufficient. This financial record would need to cover a comprehensive set of elements in your business. And you may even write down some of your business expenses you may also deem as “personal” such as your transportation expenses; petrol, train rides, buses, and more.