If you seriously want to invest in property, it’s about taking action. To take action, you need a clear path as it will help you move more quickly. One of the best ways to achieve this is to write a business plan to focus your plans. Your plan needs to set out your business structure and your goals. What is your financial freedom figure? When do you want to be financially free?
Your plan will clarify your thoughts and ideas, as well as identify the resources you have and help you understand what you need to do to move forward. Use it to raise funding. If you go to the bank for commercial finance it is essential to have a plan. Keep reviewing – am I on track? If not, ask yourself, what else can I do to help me reach my targets?
Your objectives need to be:-
- Measurable – ‘I want to earn x by x date’
- Timed – write your goals five years ahead, two to five years and up to two years. Work backwards
Legal structure: are you a Sole Trader, Partnership or Limited Company? This has implications for mortgages, accounting, income tax and capital gains tax.
Think of yourself as an organisation: you are the MD, sales and marketing, operations and accounts. Bring in the professionals when you need them, which means building your Power Team; broker, accountant, solicitor, architect, structural engineer, tax advisor and landlord association(s). Don’t forget your trades’ Power Team; builder, decorator, timber and damp specialist, electrician, gas engineer, white goods and furniture supplier, handyman, cleaners and gardeners etc.
Make sure your finances are in order. Pay off your credit cards. Identify your needs and your resources. When do you need funds? Where will you source them? Record-keeping is essential. Write a profit and loss forecast, a statement of worth, your assets and liabilities
Remember – draw up an Action Plan including:-
- Aims and objectives
- Actions and dates
- Make yourself accountable – write down your targets and share these with a mentor
- Review and Reward
Keep going and good luck! Your preparation will pay dividends in the long run.