The start-up phase of a new business can be confusing and overwhelming without definitive guidance to tackle the start-up maze. A business plan is the necessary road map to incredible entrepreneurial success. Do you need a business plan to start a foreclosure cleanup business? No, not unless you’re planning to borrow money to start. Should you write a business plan? Yes. Absolutely!

Road Map to Success

A business plan is simply a road map that will assist you in planning your foreclosure cleanup business. You’ll discover things about yourself, your business, and your partner (if you have one) before you even start. You’ll change some things before you start as a result of doing a business plan, too. It’s best to work out the kinks on paper, instead of when you’re head-first into your new business.

Business Plan Sections

A business plan is comprised of the following sections, at minimum:

1) Description of Your Business

2) Marketing Section

3) Finances Section

4) Management Section

Using the SBA to Guide You

The U.S. Small Business Administration (“SBA”) is one of those independent agencies of the federal government that is an invaluable resource for small business owners (for start-ups and established businesses alike).

Back in 1953, the SBA was created to aid, counsel, assist and also protect the interests of small businesses. The SBA helps and encourages Americans to start and build businesses. Visit sba.gov for some very detailed information on writing a solid business plan for your foreclosure cleaning business.

Counselors of America’s Small Business Owners

For more assistance with writing your foreclosure cleaning business’ road map, reach out to the Counselors of America’s Small Business Owners (“SCORE”). SCORE, also known as the “Service Corp of Retired Executives,” is a partner of the SBA and will guide you step-by-step in writing an effective business plan for your REO trashout business. They even have business plan templates on their website in both PDF and Word formats.

This is a phenomenal nonprofit group that helps create over 20,000 businesses per year. With an increasing network of over 12,000 volunteers, these executives and volunteers have been in your shoes and can assist you from the startup phase, through growth, financing, licensing, branding, marketing and even selling if ever you decide to sell your business one day.

You can call the Counselors of America’s Small Business Owners for one-on-one counseling, or you can opt to attend workshops. You may even choose to partner with a mentor who has been in your industry. Through this mentoring relationship, you can fondly pick your mentor’s brain over and over again and gain valuable insight on how to go about planning a successful enterprise.

The SCORE organization is one of those beautiful things we pay for with our government tax dollars, so use them. Visit the organization online at score.org.

Value of Business Planning

SCORE sums up the value of a business plan beautifully: “The real value of creating a business plan is not in having the finished product in hand; rather, the value lies in the process of researching and thinking about your business in a systematic way. The act of planning helps you to think things through thoroughly, study and research if you are not sure of the facts, and look at your ideas critically. It takes time now, but avoids costly, perhaps disastrous, mistakes later.”

Beginning of Independent Wealth

Remember, though it can be arduous, this necessary road map you will create during the planning phase can be the beginning of independent wealth for you as a new business owner for the rest of your life. Good luck as you roll of your sleeves and get started planning your foreclosure cleanup business.

As with any new business defining a home staging business plan should be on the top of your to-do list when thinking about starting a home staging business.

With the current housing market in a decline and housing prices falling many home sellers are in need of home staging consultants which makes it a perfect time to start your own business.

If you have a passion for decorating and real estate then this is the first step of starting your staging business writing a solid business plan.

Creating a home staging business plan will help you stay focused and on track to get your new career started.

To start with a found this great e-book at Home-Staging-Business.info that includes these home staging business plan points:

Proposal Form Business Checklist #1- home staging step-by-step Home Staging Report Home Staging Business Worksheet (11 pages) Agent Contact Data Form (keep track of all those agents you’ll be talking to) Homeowner Survey Form Staging Checklist #2 (guides you through all the staging techniques for every room in the home Home Staging Checklist #3 – Home Staging Tools Business Mileage Form
Establishing what funds will be needed and an outline on how you will spend them is an important step in your home staging business plan.Even if you don’t need a loan for start up a good business plan is an excellent way to stay on task. It’s also good to have handy and follow should your business take off and you start considering loans to grow.There are many sections to a business plan such as:

Determine how much you will need to set aside to market to real estate agents, home sellers, home flippers and small builders. Outline where you will spend your money to avoid getting in over your head. Go to the small business administration and understand what permits, licenses, and taxes you need to know about. Come up with a business name or use your own name. Still don’t know where to start? You have to read this great e-book I found at Home-Staging-Business.info, it really helped me get started with my business plan.

Getting funding for your business is provided by investors, and is typically based on a company’s business plans’ ability to show how much money is needed, how much money is going to be made, and how the investor will benefit.

A well-crafted business plan offers a glimpse into the past, present, and future of the company. Generally the funding is awarded based on financial projections that usually include a 2-3 year cash flow forecast, 3-5 year financial information forecast, and a detailed and specific plan on the how the loan will be repaid.

There are two basic types of business plan funding: debt and equity.

Debt funding is where a company borrows money (as with loans) and must pay it back with interest in a timely manner. There are many sources for debt financing: traditional bank loans, savings and loans, commercial finance companies, and the U.S. Small Business Administration (SBA) are the most common. Usually, these sources are best for companies that have a high ratio of equity-to-debt.

Equity funding means taking on private or commercial investors, and making your business accountable to your investor. Many small business owners raise funding from relatives, friends, colleagues, or customers who hope to see the businesses succeed for a return on their investment. However, the most common source of professional equity funding comes from angel investors or venture capitalists.

Venture Capitalists are institutional risk-takers and may be groups of wealthy individuals that are willing to offer promising new businesses the capital needed. These investors include individuals with substantial net worth, corporations, and corporate financial institutions. If a company has a high proportion of debt to equity, most experts advise increasing the ownership capital (equity investment) for acquiring money to finance your business plan or obtain a commercial line of credit.

As always, it is best to consult with experts and trusted advisors before making a decision that will affect your business.

Looking for small business plan usually refers to business owners who need to find ways to compose a well-written business plan. Most lenders, including commercial banks, credit unions, and the Small Business Administration (SBA), require a business plan in order to apply for a loan. These lenders analyze a plan, along with other required financial documents, to assess the risk a potential borrower poses. A sound business plan can help owners secure loan funding and attract potential investors.

The first step in looking for a small business plan is to find financial companies that offer advice on how to write a business plan. Many financial companies, including lenders, provide online websites that give owners access to step-by-step guides, along with examples, on writing a successful plan. Businesses may also seek to hire a professional business writer to develop their plans.

Small business plans usually include the same type of information. The first part of a plan contains a cover sheet, statement of purpose, and a table of contents listing additional sections. The first section describes everything about the business itself: marketing plans, personnel, competition, operating procedures, and business insurance. The second section of a business plan consists of financial data, including loans, list of equipment and supplies, a balance sheet, a cash flow analysis, profit and loss statements, and breakeven analysis. Some plans may even have a third section where all important financial documents, resumes, and contracts are kept.

Individuals looking for business entrepreneur are usually looking for a business partner. A partnership allows two or more individuals to start and operate a business, splitting the liabilities and profits evenly between all partners. Many start-up business owners choose to bring in a partner who has expertise related to the business and who can contribute the needed capital for start-up and operating expenses.

When looking for a business entrepreneur, individuals can take advantage of several online websites that connect potential business partners. These sites typically require individuals to register and complete a profile that details what they are looking for in regards to a business partner. Then, registered users can browse other listings and profiles to find a potential match. When using a site that matches potential business partners, some of those partners may be silent investors.

It’s important to note that all partners are investors, but not all investors are partners. An investor is simply someone who contributes capital to a start-up or existing business. Silent investors have no input on the business’s decisions and may or may not enjoy a portion of its revenue. Partner investors, however, do have input on the business’s decisions and do receive a percentage of the business’s profits. There are also angel investors, individuals or groups of investors who contribute capital to businesses. Angel investors typically require businesses to sign an agreement that outlines the terms of the contribution. They may ask to receive a portion of the profits.

There are many resources on the Internet that can be sourced to find an outline or elements of a business plan. In addition there are also sites that provide an online template that one can complete. The big question, then, is which one to use.

We believe the right outline to use is the outline that will be acceptable to the target market of the business plan. Many years ago we assisted a client in drawing up a business plan. Lots of time and resources went into this process. When it was done we were asked to help present the plan to venture capitalists. To our surprise we were told that our format is not in line with their own guidelines. The results were that we were set back another two weeks.

In America most banks will accept a plan that is compiled based on the guidelines set out by the U.S. Small Business Administration. PaloAlto has also ensured that their business planning software was developed based on these guidelines.

In short the SBA’s guideline outlines the following nine areas that should be covered:

Executive Summary – a concise overview of the entire plan with a history of the company. Market Analysis – knowledge about the industry your business is in. Company Description – a high level look at how all of the different elements of your business fit together. Organization & Management – Organisational structure, ownership, profiles of the management team profiles, and the qualifications of the board of directors. Marketing & Sales Management – This outlines the process of how you will “create customers”. Service or Product Line – A description of what you are offering your customers stated in terms of the benefits it delivers. Funding Request – Statement of the funding you require. Financials – Including forecasted income statements, balance sheets, cash flow statements, and capital expenditure budgets. Appendix – Important information that creditors may ask for such as credit history, resumes of key managers, licenses, permits, patents etc.

In future articles we will delve a bit deeper into the various areas. In essence it is all about answering the following few questions after you have identified the audience for your business plan and their needs or requirements.

Who are we? Where are we now? Where do we want to be? How do we intend to get there? What do we need to achieve this?

As a first step you may try to find out what the requirements are of the people you want to present your plan to…

Happy planning. Make it a challenging, exciting and creative experience.