These are the three elements an effective business plan includes.
If you are a real estate professional, or really any type of business owner or independent contractor, you need to have a business plan. Have you ever created one? Maybe you’ve heard about it but were never sure where to start. I’m here today to help you with this.
First of all, a plan creates the foundation for your business. It says who you are and where you’re going so that you can hold yourself accountable. You’re always moving somewhere, so make it intentional. The key to an effective plan is to make it specific and easy to understand.
There are many things you can include in your plan, but here are the three basics every plan must have:
1. A mission or vision statement. This is pretty self-explanatory, but it should include who you are, why you exist, and what you want to achieve. Ask yourself what your purpose is, what you value, and what kind of service you want to provide.
“You’re always moving somewhere, so make it intentional.”
2. Your strengths and weaknesses. Knowing these will help you stay aware and know what to work on to improve. The easiest way to do this is to perform a SWOT analysis, which stands for strengths, weaknesses, opportunities, and threats. Within this framework, analyze what applies to you specifically. For example, what could threaten your business? All of these will help you evaluate the factors that drive your decisions, help you make more money, and determine what sets you apart from the competition.
3. Your goals. Too many people choose goals that are unattainable or not specific enough to actually achieve. You need to know what your hope is for the short and long term, and they need to work together. The best way to create a good goal is to make it SMART, which stands for specific, measurable, achievable, relevant, and time-bound.
Many business plans have more information than this, but these are the basic three things that should be included every time. Once you’re done, make sure you create a schedule for when you’re going to reevaluate and do so regularly. Things change—that’s life! Make sure you’re ready to move with the times.
