How a Business Plan Can Help New Businesses Make Better Real Estate Decisions
May 5, 2022
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A business plan is an important tool for any new business. It can help you get off to a good start, set a budget, and track your progress. Here are fours reasons why you need a business plan when choosing your terms, location and budget:
- New businesses typically do not have historical financial information, this can make it difficult to get past the application process when you are trying to lease a space. However, having a business plan shows the landlord that you have carefully thought out your business and have a clear idea of what you are trying to achieve. It also let's them see how you plan to finance your start up and may help you achieve more favorable lease terms.
- When starting a new business, it is important to identify your strengths and weaknesses. A good business plan includes a Market Analysis. This will help you identify your target market. This information will help you choose a location that is right for your product or service.
- A good business plan will also include a Financial Analysis, this is where you will make your revenue projections and set a budget. This is important because it will help you see how much your business can afford for rent, employees, etc. What you can afford will often dictate the size and location of your business. During this process you should also set KPIs or Key Performance Indicators. This will help you track your progress and see if you are on track to reach your goals.
- A business plan should also help you evaluate your Management Team, these are the people who will help you run your business. They won't all necessarily be employees, but could be contractors, consultants, or even family and friends. This section of your business plan will help you identify who is on your team and what their roles are. We think an important member of your team should be a Commercial Real Estate Broker, they will help you find the right space for your business and negotiate your lease terms that fit your budget and future plans.