Did we really just say a plan needs to take a step? It does not even have legs! Well, the plan needs to take the step – the question that you should be asking is “in what direction?”
It is not surprising to hear that most new business fail in the first year. Why is that? With any endeavor if you do not know where you are going how can you get there? You must establish a destination and your plan needs to move in that direction.
Let’s use a real life example. Doug moved from one of our affiliates in Tacoma, Washington down to Las Vegas. Doug had never lived in Las Vegas before and did not know his way around the town. Vegas has a system of freeways that circles the whole city (the loop) and if Doug did not know where he was going, he end up driving around and around Vegas until he ran out of gas (kind of like our tax system). Doug needed to have a destination and needed to choose a route prior to starting a trip. Even if he had an idea of where he was going – say the strip – if he just jumped in his car and headed down the hill from where he lived, he might find his way, but it would probably take him longer then needed and he would end up spending more money on gas than if he had a precise route (like using a map or a navigation system).
Starting a new business is quite similar. Without a destination and map, you would end up on the loop just driving around until you ran out of gas. If I have an idea of what kind of new business I want to start or a perceived destination, but no way of knowing how to get there, you will be spend more time and money (not to mention stress) and will have a higher degree of failure.
If you stop and think about a destination and take the time to print out a map and chart a course, your chances of success are going to be far greater. You just need a good map and someone who knows the roads – like Atlanta REIA. Before we get to the map, let’s discuss destinations:
If you are going to start a real estate business, what is your revenue goal for year one? What is your five year plan? What is your projected gross margin? What does it take to make a profit in your business?
If you are going to become a full time Real Estate Investor, which of vast number of strategies, techniques and systems are you going to be using? How many deals do you plan to close each month? What are your exit strategies?
If you, like the rest of us here are going to profit from this current real estate market, what are you going to focus your attention on? Short Sales, Foreclosures, Flips, Rehab’s, rentals, lease purchase, notes, mobile homes, multi family, commercial, etc, etc? Do you have sufficient funds to do the type of deals you are going to target? If rental property is your goal, how many rentals do you plan to acquire and over what period of time?
Whatever you destination, a plan of attack and a step by step, turn by turn map of how to get there is what you need. You need to make sure your route is sound and that you take the best roads – that you use the best vehicle to minimize costs, save on taxes and protect yourself from the other drivers out there.