For every business, you need a plan. Most people start out with not having a conventional, written plan at all but rather something like ‘rich people have investments so I’m going to invest in property’. While this isn’t a well worked-out plan that you can get back to and measure your success, it’s still a plan.
However, if you really want to invest in property, you’ll be much better off with a written plan where every element is thought through and determined before the start.
If you need some guidance on writing a plan, here are some tips:
1.Write a summary
Plans can get lengthy and detailed so it’s best to have an assigned place that you’ll come back to when you need to check something instead of searching for information. Summary is a good place for that. It can consist of even a few sentences – or it can be a few pages long – but it should hold the most important details.
Include general information on each step of your plan or even a list of steps so that you can always go back to it and check your progress.
2. Outline your strategy
If you want to venture out into investment, you’ll need a sound strategy. This can be quite simple if you do it properly. Split your plan into a series of small, achievable tasks. “Section them into sub-goals that you’ll set. When you combine those sub-goals, you’ll achieve your main goal. Make sure that the tasks are truly small and that they focus on one action only” says John Miller, a financial writer at Ukervicesreviews and Academadvisor.
3. Develop a financial plan
A financial plan or a budget is just as important as your strategy. This will tell you how much money you have and how much you can spend on each individual task. Stick to this plan as much as you can to avoid additional costs that would set you back.
Making your plan as readable and understandable as possible is very important. Especially if people other than you will look at it. You want your information to be clear and easy to read and comprehend. If you just create a block of text, no one – even you – will be able to see what they need.
5. Assess the market
As every business does, you too should assess your market carefully. This means competition, possibilities, vendors and so on. Analyse the movements of prices and read from experts on what they expect in the future to know what to do.
This is very important – without a market assess, you won’t be able to act in a way that brings you financial success.
Just like formatting, proofreading is another step you need to take in order to make your plan easier to understand. Misspelt words and grammar mistakes can lead to a lot of misunderstandings.
7. Define your goals
Without clear goals, you will never be able to achieve success. If you are starting a journey, you need a destination – it’s that simple. Before you start planning, set clear and measurable goals that will help you determine what you need to do.
Set one main goal – earning your first million from investments, for example. “Then, set a succession of small, measurable goals that will lead you to that. Just like with a strategy, these will help you know where you are and how much more you need to work to get where you want to be” says Chloe Lace, a business writer at Australian Reviewer and Study Demic. Never stop setting goals, even after you achieve your main one.
Investing in property isn’t an easy road to success and there is a lot of risk. But, with a sound plan, you’ll be able to eliminate some of that risk and build a good base for your ventures. Follow these tips on writing a plan.