Developing a Business Plan

With respect to developing a business plan, it is useful to consider the following questions at the outset of the development process. Why bother having a business plan? What is the importance of a business plan?

A business plan documents for all company stakeholders (ownership, executives, employees, clients) the direction in which the company is headed. It helps stakeholders understand the company’s vision by serving as a clear roadmap for the future. What is the motivation for a company to develop a business plan?

The process of developing a business plan helps to ensure that all stakeholders:

• understand, accept and support the company’s future direction;
• understand the relationship between business goals and resource allocation; and
• work together collaboratively to achieve the company’s goals.

What are the benefits/consequences for doing/not doing a business plan?

Implementation of a realistic business plan helps companies

• make the best use of their resources,
• maintain focus on achievement of business goals,
• more accurately measure progress.

A continuous stream of new business is the lifeline of a third party property management company. It is important to establish internal assessment, goal setting, and planning processes that allow for flexibility in developing or reshaping a workable business plan. A business plan is an evolutionary document, which serves as a benchmark for measuring and improving performance and indicating where your company is in process of achieving its mission and vision.

A universal format that applies to all business plans does not exist. The plan you develop will depend on your goals, your clientele, and your company. However, business plans share many similar elements - describing the business and its market, setting goals, developing a management plan, analyzing financial data, and measuring success.

The following is a suggested format for a business plan that includes the following components:

• Cover Page
• Table of Contents
• Executive Summary
• Business Description

• Mission
• Vision
• Core Values

• Current State of the Industry
• Competitive Market Analysis
• Goals
• Business Development Activities
• Financial Projections
• Supporting Documentation
• Summary