Throughout our company’s history here at Matanky Realty Group, we have helped thousands of businesses from small-business startups to franchises to major national brands make an impact in their communities. Of all the various aspects of establishing a new business, a solid business plan remains the consistently effective method of assuring success.
The old adage, “If you fail to plan, you plan to fail,” continues to ring true. Among the biggest stumbling blocks for new entrepreneurs, weak or nonexistent business plans comprise most of the issues we have experienced as brokers. When serving people with great ideas and a drive to create a new enterprise, few things discourage us more than having to tell a would-be business owner that they need to create their plan before they work with us.
Why You Need a Business Plan
In reality, a business plan serves you as an entrepreneur by mapping your journey. It keeps you on track and documents all of the important items you need including how you will compete, how you will go to market, who you need to hire, how you will spend your resources, an estimate of your return on investment (ROI) and when you expect to start seeing success.
Lenders and Landlords Require a Business Plan
If you are looking for a space to lease, the owner of that property will want to be sure that their important asset – that lease space – will have the protections it requires to be a sustainable source of revenue. In other words, a landlord needs to see that your business will stand the test of time over the duration of the lease and beyond.
Furthermore, every lender, including banks, angel investors, alternative funding sources (i.e. micro-investment companies) and the Small Business Administration (SBA), require a business plan complete with financial projections. Expect your business plan to include about 8-15 pages of content plus an Excel document with financial projections including start-up costs (i.e. fixtures and tenant improvements, deposits, furniture, and opening inventory). Don’t forget to include marketing, advertising, and signage in your startup costs. Other items to consider include your expected monthly payroll, utilities, cost of goods sold (COGS), taxes, insurance, and other fixed and variable costs plus your expected income.
With your plan, you can demonstrate that you have the knowledge, skills, abilities, resources, and can-do attitude to be among the majority of successful start-up organizations.
Get Your Free Business Plan Resource from Matanky Realty Group
Our team has created an easy-to-follow set of resources you may find helpful as you plan your new business. Click on the link below and use the form on that page to download your free guide. Matanky Realty Group brokers are ready, willing, and able to help you succeed, and, by getting your plan in order, you help us to help you to be effective in grabbing that perfect piece of property to begin your American dream!