It’s very easy to become a full-time property rehabber. Yet it’s strange that so many people fail to succeed at this.
Reason: no business plan.
No matter whether you purchase one or fifty homes, it’s important that you consider it to be a business. It’s also vital that you think seriously about what it is you’d like to achieve.
Here are 4 reasons why you need to create a business plan:
1: To Plot Your Course
Very clearly, this is about creating the big picture. What it will help you do is recognize long-term direction when it comes to your business. Remember that this plan is not just about starting a business but where you intend to go in a few years.
2: Creating a Feasibility Study
There are a few questions that you have to answer here too. This involves whether this new venture will be profitable or not, whether your goals are viable, what the barriers to your success might be as well as the kind of financing that might be necessary.
3: A Reality Check
The first thing that this plan does is challenge your pre-conceived notions. What this plan will do is raise questions (and solutions) even before these issues actually arise. Also, you will understand what you need to do apart from analyzing both your strengths and weaknesses. As a result, you will know what areas you need assistance in.
4: A Guide & Measurement Tool
As your business grows, this plan will act as a guide while also measuring progress against expectations as set in the place. Here are some elements that must be present in the business plan: executive summary, market analysis summary, implementation plan, sales strategy and projection, projected profits or losses, financial plan, management summary, important assumptions and a final summary itself.