Business plans are a necessity if you are trying to get finance for a new business. Most investors or loan companies will not look at you twice unless you show them a detailed business plan.

Many people don’t bother with a plan as they feel it is not necessary. But you mainly need a business plan for yourself. The actual process of creating a business plan will do you wonders for the long term success of you business. As you work through your plan you will come across a list of questions which will highlight areas of your business which you may have overlooked or which need more research. Even if your not asked for a business plan it is well worth doing one and referring back to in the weeks and months to come.

So what makes a good one?

A good business plan should be a long term strategy for you business. It should include everything that you will need to do to run your business, including what the actual activity will be, what resources you are going to need. You need to detail your employees, money, time, equipment or stock.

Your business plan should include

o your business idea – what you do, sell etc
o who your target audience is
o your projected revenue and expenses for a year
o list of your major competitors and how they are different to you
o marketing plans and what results do you expect from them
o how much you expect to sell and when
o resources (e.g. money, employees, premises, equipment)

With your business idea you need to explain clearly why you are different from your competitors, what you are offering that is different and why your target audience should use you. Include how much your products or services will be and explain any market research which was undertaken. If you haven’t done any market research you should stop writing your plan and so some.

In the marketing section you need to explain who needs your product, where the purchasers will be based, your competition and why you are better or different. Also if is worth mentioning any emerging or growing trends in the market including impending changes and what the effects will be to your business from these changes.

If you have a team of people as part of your resources you should explain what each persons job role will be, what their strengths and weaknesses are and if there are any gaps how you will fill them.

The financial projects are very important and you should try to ensure they are as accurate as physically possible. Ensure you explain what your likely profit and expenses will be including any assumptions.

The more research and planning you do the better chance your business has of succeeding. So get researching and get planning and you will soon be reaping the rewards.

A commercial real estate agent needs a plan. In that way you can build your systems and focus on the things that need to be done.

It is interesting to note that many ordinary or new agents struggle with the entire job structure for some time until they find something that works for them. The longer they struggle the greater the frustration in getting clients and listings. They need a plan.

In this market you need quality clients and good listings. It is the good listings that will bring you better inquiry and over time that will help you with market share and completed transactions.

It is worthwhile remembering that the industry is based on relationships. Grow your relationships at every opportunity. Your relationships and your listings should feature in your plan.

So if the commercial real estate market is a bit difficult for you, or you think things can or should be better, it is time to look at your personal business plan. Here are some ideas to help you.

1. Determine where you are right now when it comes to listings, clients, market share, and knowledge. If you have any shortcomings with these things, then the gaps need to be filled with better processes and or knowledge. Practice in our industry is a good thing. That is practice in prospecting, pitching, listing, and negotiating.
2. Look around your market to determine the things that you are up against and also those things that are opportunities for you. Make sure that the market has enough growth and vibrancy to allow you to grow your income and market share.
3. What are your competitors doing? Are they any good at what they do? Can you be better than them? Your answers will help you set some priorities in your business planning.
4. Relationships and knowledge in our industry are quite important. You must have good relationships with prospects and clients, and you should have a solid base of knowledge when it comes to the local area and doing the deals. Our clients and prospects don’t like to be an ‘experiment’ in property marketing; they need to see that they have chosen a top agent that really knows how to deal with the challenges of the property. Put your clients and your prospects into your plan.
5. Determine where you are now when it comes to effectiveness and getting to the things that really matter. If you are not in control of your working day then a plan will not give you traction. Set your rules of ‘control’ and put your plan into it. Do not let others disrupt your focus and actions. Their plan or their priorities are of no benefit to you (unless they employ you).

It should be said that the critical part of planning in commercial real estate agency is in taking action. Without taking action a plan is useless. Things only start to change when you create the action that you need and you build that action into a ‘habit’.

A business plan is a management tool. Do you need a business plan? Yes if you:

You Need To Decide Whether To Start A Business

This plan will help you improve your chances for success and avoid making serious mistakes. You may be the only one who reads this plan, although you should have input from a number of other people with business experience. You need to ask yourself the following questions and incorporate the answers in your business plan:

o What does it take to succeed in this type of company?

o Do you have the skills and background necessary?

o Can you afford to take the risk? What effect would the business’ failure have on you?

o What is the growth potential for the business? Can it meet your financial expectations and requirements?

o Is there a large enough market for your products/services?

o Will you enjoy owning and managing the business?

A business plan is an important ingredient to the success of a start-up business.

You Want to Jump Start Your Business

Whether you’re an entrepreneur doing business on the Internet, a stay-at-home Mom with an arts and crafts company, or a writer trying to break into publishing, a business plan acts as a guide to success. Developing your business plan helps determine your objectives and focuses you on the strategies and action plans necessary to accomplish those objectives.

If you’re looking to boost your business it’s time to answer a few questions in your business plan.

o What are your skill levels and talents?

o What are goals for each month’s sales?

o What are your resources, time available, advertising and promotional budget, website?

o Do you have the necessary equipment? If you don’t, how will you obtain the equipment?

o What barriers do you face?

You Want To Better Organize Your Company or Improve Its Operations.

This is a time and task oriented plan for use internally. It suggests actions that need to be taken and assigns responsibility. Questions that need to be answered:

o How does our company compare to leaders in its industry?

o What are our management weaknesses? How can we make improvements?

o How can we increase sales, serve the customer better, improve manufacturing efficiency, increase the gross margin?

o Do we have the necessary resources to make the above improvements? If not how will we obtain the resources? Do we need a bank loan or line of credit?