If you were to approach a bank for a business loan to start up your new business, they would certainly want to see a business plan. It should be no different with your property investing, however, at Embrace, we have seen many people start out in property who have not considered what strategy is best for them. This can be very dangerous as there are lots of different options, strategies, and ways of making money from property. Not all of these will fit you and your criteria, and so you really need to think about your investment goals and targets. This will depend on a variety of factors including your financial situation and the money you have available to invest, your risk profile, and your experience level.
You need to first and foremost have a vision. You will need to make that vision strong and compelling and stick to it.
The key at the start is to devise a property business plan, so that you can plan where you want to be, and can also highlight any things you will need to overcome or need help with along the way. From my experience you should be looking to devise at least three different plans:
Writing these 3 plans which should outline your investment goals and targets, will be a good exercise and allow you to get focus and clarity on where you want to be, ultimately helping you get to your end goal.
It is important though to write challenging but realistic plans. Everything usually takes twice as long as you often plan. You need to set challenging goals but be realistic about how long it will take, how much it will cost, and allow/factor at least double the time/cost. There is absolutely no point in writing a plan that is unrealistic and unachievable, as all this will do is leave you frustrated and overwhelmed. The key is to not only think of what you want to achieve, but also think of potential pitfalls you may face along the way. This will allow you to plan ahead and to put provisions in place to combat potential problems. Whether that is problems with finance, growth, or mind-set issues, it will help you to focus and gain clarity on your journey. The saying, ‘if you fail to plan, you plan to fail’ is extremely true and all successful entrepreneurs and property investors have gone through this exercise.
Another key point to remember, as thing evolve your property investment plans may change slightly and the key is to be always thinking of ways you can tweak or improve what you are doing. Once you get used to writing and structuring different plans to suit your circumstances and investment goals, you will then be able to look further down the line and what you expect to be doing in five years’ time and so on. It is vital to always be looking into the future, but also focusing on the present and how to constantly move your property investing forward.
- Peter Iwaniszewski