Knowing where you are going, then trusting your skills, connections and abilities to get there are the cornerstones of running a great business with confidence, and ultimately achieving wealth. So what is the critical key? You need a plan!
First, where are you going? It’s like planning a trip. You decide on the destination and then figure out how to get there. Managing a business is the same. Determine your goal, develop a step-by-step process for achieving it, then follow through on the process to reach the goal.
What to ask yourself to find the way.
Look back at the past year and the actual results from that period. Analyze the sources of your income and how money was allocated for expenses. You may determine more marketing is needed or cost-cutting is required. I love Quickbooks; it helps tracking real estate investments using a class for each property and gives you the proper details for cash flow management.
In most businesses–including real estate investing–markets change, clients move on, and money may be saved with new processes or added technology.
As I mature, my focus has shifted into doing more of what I love and delegating what I don’t. In the last couple years I have done more consulting and coaching clients on their personal real estate investing strategy, then executing the strategy by listing their property or finding great deals. That sometimes meant digging up non-MLS properties if inventory was tight, including finding and executing many off-market deals for my clients. Certainty is needed to feel confident enough to pull the trigger on a first investment property or any real estate deal. We all want to KNOW that we are making a wealth-building investment decision.
Don’t let this be you – the hesitator. The real estate market is strong almost everywhere; the longer you wait, the more you pay. I love being a resource and sharing my vast experience gained through building a personal $14 million real estate portfolio. Believe me, there were plenty of mistakes which can be helpful to you, as I share them to show what works and what doesn’t.
Has your business shifted? It’s a great time to take a look at what the market is doing in your industry. The internet has made significant changes in the way we connect and the size of our markets. Are you capitalizing on all that is available to grow your own business?
Planning is a key to wealth. This means having a business plan, yes a written plan. The plan can be elaborate or as simple as Who, What, Where, When, and Why.
Who is your target market?
What are you offering?
Where will people know how to buy from you?
When are you telling others what you are doing?
Why will people choose to do business with you and not your competitors?
Take the time NOW to answer these questions. Then decide on just three main goals to fulfill on these questions. Put it in a separate document and call it your business plan. Then, as new ideas appear simply add them to your plan.
A few easy places to search for business planning tools are:
www.Score Templates for Start-ups, established businesses, balance sheets, bank loan requests, break-even analysis, cash flow statements, competitive analysis, financial history and ratios, personal financial statement, profit and loss projections, sales forecasts, and startup expenses
www.Bplans.com Over 500 business plans. Look under real estate, Real estate brokerage, real estate management, mortgage broker, real estate broker, home inspector, real estate website, rental remodeling, retail property plan. For $12 a month can buy the Live plan software.
My favorite method to KNOW with CERTAINTY and speak with CERTAINTY about my business is to put the answers on index cards. Then read them once a day out loud. This grounds the information so you can say it when needed in conversation. It also gets your mind set on these goals. Why not help yourself along with these simple tools?