Re: Writing a Business Plan - Posted by Mike-OH
Posted by Mike-OH on November 24, 2005 at 08:52:07:
Writing a business plan should be an individual exercise. There truly is no “wrong” way to write a business plan. A business plan can be anything from a few points written on the back of a napkin to hundreds of pages placed in a customized leather binder.
There are really two reasons to write a business plan: 1) for your personal use, and 2) to present your business to others (bankers, partners, etc).
Personally, I have a 4 page business plan. The topics include Introduction, Objectives, Method (of achieving objectives), Concept and Market Niche, Marketing, Growth, Management Philosophy, Building a Team, Organizational Structure, Diversification, Continuing Education, and Summary.
Before you start your business plan, I think that you should re-examine your goal. You said “My main goal in REI is to be able to help others in an otherwise precurious situation with thier homes.” This would make a good goal for a non-profit charity, but is not an acceptable goal for a BUSINESS. Don’t be misled by guru speak, the purpose of your business is to make money, not help those with credit problems. In my opinion, this “helping people” talk is nonsense that is spread by gurus to help newbies feel better about themselves when they take someone’s home for pennies on the dollar. In reality, when you do these types of deals, you are doing so to make money and you run the very real risk that the very people who you’ve “helped” will sue you later when they decide that they were a victim and that you didn’t help but rather stole their equity. Of course this is ridiculous, but that doesn’t matter in our court system. Just remember that in business, NO GOOD DEED GOES UNPUNISHED. Also, when dealing in preforeclosures, it is absolutely critical that you get the paperwork right INCLUDING DISCLOSURES AND ACKNOWLEDGEMENTS. Otherwise, you may end up being the one that needs help (legal help, that is).
Anyway, my point was that you should be honest with yourself. In the preforeclosure game, you are winning (getting the equity) while someone else is losing (their house). Contrary to popular seminar nonsense, once the owner is well behind on their payment - their credit is already ruined and you can’t fix it!