WARNING: 7 Factors That Can Affect Your Real Estate Business

How important is the success of your Real Estate Empire, I can answer that for you "very important", especially if your dream is to retire comfortably on your investments in your later years. Simply put Entrepreneur Magazine outlined what successful businesses have in common and the majority of the concepts are incorporated in the company's business plan.

I am often reminded of a quote by one of America's Founding Fathers Benjamin Franklin "If you fail to plan, you plan to fail", my thoughts exactly. Everyone is familiar with what a business plan is but some people do not know what need to be included in the plan. There is a misconception that banks/loan officers are only concerned with the capital generated by the business, but what they are also looking for is the business' growth plan. Banks are looking to see how will the business grow and be sustainable in the foreseeable future. They are trying to answer the question: after the loan is approved how will the business increase sales and build revenue. This is where a complete business plan can give you a competitive advantage in the marketplace. A business owners no matter the industry want their business to succeed; by incorporating these 7 Factors in operational planning will result in a profitable business. This post will help outline the 7 Factors of a strategic business plan.

I refer to my business plan often; it is my Bible. Before every MAJOR decision I refer to my plan and I ask myself the question "Does this fit within the scope of my business"? No matter how sweet the deal, if it does not fit within the scope of the business I do not try and make it fit. I pass on some opportunities, but I refer them to colleagues that may work in that niche or have the capacity to handle a larger project. Although a particular deal does not work for me directly, indirectly it is a part of my plan because it helps with establishing formidable relationships by offering great referrals which is emphasized in my plan(Factor II).

Here are the key 7 Factors that should be included in your business plan.

Factor I-- Industry Information- you must know your industry; this encompass current trends, future trends, and your business description.

Factor II-- Business Model -- Strategic Vision, Guiding Principles & Values, Strategic Mission, and Strategic Goals. The key word in this section is strategic (strategy). Things must be thought out and organized before implementation. Remember; you will not have or need everything before implementation, but it must be thought out before implementation. "Preparation"

Factor III-- Organizational Analysis-- The housing industry is a competitive environment, and you need to identify key factors that will make your business successful. A SWOT Analysis will help to define your businesses Strengths, Weakness, Opportunities, and Threats.

Factor IV -- Organizational Strategies-- How will your business navigate the industry, and what will set you apart form other businesses and get you maximum exposure to your target market. Most often this is outlined in the business "About Us" page on their website.

Factor V-- Strategic evaluation of your business, this section is the most viewed. This is the area where financial projections are introduced. How will you grow and expand operations. This will be your companies measuring stick.When you look back you can see if you are doing what you were projected to do, if so great challenge yourself more, if not great challenge yourself more.

Factor VI -- Implementation, how will you deploy your plan, and what projected changes maybe needed.

Factor VII -- You will need Pro Forma: Balance Sheet, Statement of Cash Flow, and finally Income Statement.

If you really want to be taken seriously as a business professional you will need to have these 7 Factors outlined in your business plan. Please do not get frighten into believing your plan have to be long and extensive; a well prepared 1 page plan is more effective than a well crafted 30 page plan that sits on a shelf.

Your business plan is your path to success, no matter how detrimental things may become if you follow your plan and apply a little faith you will finish your course.