The final of The Eviction 2022 is here! 2 fierce candidates battled it out with their personal business plans. Both plans had their strengths and weaknesses, but there would only be one winner of the £20,000 cash! Adam presented a plan for doing BRRR (Buy, Refurbish, Refinance, Rent) deals with the money. Cherelle presented a plan for a rent-to-rent business. You will need to watch the full video (above) to find out who won!
Being able to write a business plan is an important part of running a business. You will need a business plan to get investments or to borrow money. A business plan needs to explain how you intend to make money and grow the business, using accurate figures and realistic projections. If you get your business plan right, it will make talking to investors a lot easier. In this article, I will give you three tips for writing your own business plan.
1. Clearly define your business
You will probably have lots of ideas and big dreams, but it is important to define your business clearly. You want potential investors to understand what you will be doing and how you will be doing it. If you try to overextend yourself, you are likely to confuse investors and put them off from investing. Be clear and concise; stick to explaining your core business model.
If you can’t explain your business in a sentence, there is a problem. Work on defining and explaining your business as a priority. Think big, but explain everything in a way that is straightforward and easy to quickly grasp. If you do this, you greatly increase your chances of success.
2. Understand your costs
Make sure you fully understand the costs of running your business. If you don’t understand your costs, your projected profits will not be accurate. Make sure you understand the taxes that will apply to your business such as VAT, corporation tax and capital gains. Also, understand what you will need to pay out in terms of compliance and insurance. If you will have to pay it, include it in your calculations!
Investors will be looking to see that you understand the costs of running your business. They will be quick to spot if you leave anything out. If they feel you don’t understand your costs, they are less likely to trust that you can run the business.
3. Seek advice from peers and mentors
Once you have written your business plan, get feedback. You should make sure the feedback is from people that have successfully done what you are doing and are in the same industry. If your friends and family have never run a business or sought investment, they may not be able to give you good advice. Speak to peers that are slightly ahead of you in business and speak to mentors that are experts.
If you do all this, you will be setting your business up for success. If you would like help with starting a property business, why not book a ticket to my next crash course? They are only £1 and you can get yours right here. I hope to see you there, maybe we can chat about your business plan!