How To Write A Property Management Business Plan
Maybe you are starting your own property management company, or perhaps you already work for a property manager. Either way, you need to write a property management business plan, and you are wondering where to start. Fortunately, this is a relatively easy task that just about anyone can do! There are several things you will need to define.
First, provide an executive summary. Who is your company? What do you do? How do you plan to get it done? Who do you do it for? You’ll also want to provide a solid description of why you are investing your time and efforts into the property management company, and what you plan to get out of it. What are your sales projections Provide detailed answers to these questions?
Create a list of facts. What is the mission of the company? How much initial capital is needed? What products and services do you offer?
The next thing you need to do is to define your management team. Describe who each person is, what their background is, and what their responsibilities will be. Write about what each person will contribute to the company, and why they are an integral part of the team.
Define your strategy. How will you get started? Go into detail on how you will focus your efforts to get the business plan up and running. Write down exactly how you plan to run the business, and what your day to day focus will be.
A very important step is to identify your objectives. This is a detailed section that tells exactly how you plan to execute your strategy and effectively manage properties. For example, don’t just say you will “grow steadily in the first two years”, describe how you plan to accomplish this.
You also need to identify your market analysis. Are you in an area that needs your services? You’ll have to be familiar with market size, industry analysis, income analysis, industry participants, and competitors. In this section, determine why you chose this particular location for your company. It may be that you are surrounded by condominiums that need to be managed, or you are in a big city with plenty of opportunities.
Next, you have to identify your financial strategy. Determine exactly where your capital will come from. Most likely, you’ll need to leverage capital or get a bank loan. If so, what are the terms of the loan? The financial strategy also includes your expected profits. You need to go into the business having an idea of the income you intend to generate. You need to know your break-even points as well. Understanding the cash flow of your business is key to making it a success.
Do a SWOT Analysis. SWOT stands for strengths, weaknesses, opportunities, and threats. This helps to strengthen your marketing strategy.
Lastly, have a checklist for each important milestone. Have a deadline for the completion of each task. Don’t just let things happen, make sure you know exactly when they will happen, and what you need to do to make it a success.