What if your property management business never grew to its full potential?
It's a sad reality that many businesses fall by the wayside instead of thriving. In order to achieve your full business potential, it's important to create a property management plan.
Not sure how to craft such a plan or what it can do for your business? Keep reading to learn the answer!
What Is a Property Management Business Plan?
As the name implies, this is a business plan for your property management business. This plan touches on almost every aspect of your business.
Good plans provide an overview of things like goals, ownership, and the current state of the business. It should also define your unique value proposition and include a thorough SWOT analysis.
The plan must include an organizational chart and operations structure as well as a marketing plan. Finally, it should include your budget and other financial considerations.
Now that you know a bit more about what goes into this business plan, we will walk you through how to craft each of the primary components.
In some ways, the business overview is the simplest section. And the first elements of this overview are very easy to create.
You simply need a breakdown of current company ownership and a profile of the business. This is simple, but it helps ensure that employees are up to date, especially if there are any shifts in upper management.
The next part is a bit more complex: you need to include your future goals for the company. At the bare minimum, this includes goals for the next year, three years, and five years.
Make sure these goals are as concrete as possible. This will help you and everyone else insure that your future branding and marketing are all in full alignment with your short-term and long-term goals.
After the overview, you need a more detailed breakdown of your company. For example, while the overview touches on your upcoming goals, this section should elaborate on them. Similarly, you can detail more about the business ownership type in this section.
This section should also include a bit of the philosophy driving your business. This includes what your business model looks like and even why you are in business.
Arguably, the most important element in this section is a SWOT analysis. This honest accounting of the assorted strengths, weaknesses, opportunities, and threats can help you and other employees grow your company over the years.
The next section is a bit more straightforward. It details the exact operations structure that governments your property management business.
The first element is an organizational chart. Such a chart is particularly useful with larger businesses because it helps outline who reports to whom.
Next up, you should define the kinds of services that your business has to offer. This should include a detailed account of both your base services as well as any "value-added" services you currently offer or can potentially offer.
After that, you should define any partnerships and subcontracting relationships. This lets anyone viewing the plan know which personnel and resources may be at their disposal for assorted needs.
The last elements are an equipment inventory and a maintenance plan. What do you have and how will you take care of it? It sounds basic, but the lack of a solid maintenance plan can be a very costly mistake over the years.
The next to last component of your business plan is the marketing plan. This forms the core of how you intend to market and brand your business and ultimately expand your company.
First up, you must define a target market. This includes defining the ideal tenants, property sizes, location, and so on.
Next, you should include a breakdown of your competition. What services do they offer, and what sets them apart in the market? Don't forget to include factors such as the amenities that they offer and the rent(s) they pay.
After this is market positioning. This includes your current position as well as your unique selling proposition. In other words, what sets you apart from a very crowded field of competitors?
The next component is your marketing budget. How much money do you have to lean on? This helps determine not just how much you will advertise but which channels you will take advantage of.
Crucially, the next element is what your plan is to bring in new customers. This is where the rubber meets the road and you discuss the intersection of budget, demographics, and effective marketing.
Speaking of which, the final elements include specific marketing plans for specific channels. What is your email marketing plan and social media plan? And do you have a plan for a good, old-fashioned direct mail campaign?
Finally, you should include your current networking plans as well as any additional advertising plans. This may include aspects such as property management SEO to help bring in new customers.
Keep in mind that this marketing section may be small but it helps to determine how you grow your business.
The last section has some of the most important information: financial information. Fortunately, it is very easy to assemble and present this info.
You will need profit and loss information for both the most recent fiscal year and project info for the next year. Additionally, you must include a balance sheet and planned equipment expenses. Finally, you must define the process by which you will measure profit and loss to actual budget for the company.
What Comes Next?
Now you know how to craft a property management business plan. But do you know where to get more info about property management?
We specialize in answering all of your questions about real estate. To see how we can help you grow your business, check out our Q & A section today!