If you want to earn through short-term investments in real estate a house-flipping business might be the ideal one for you. According to statistics investors flip between 2 to 7 houses on average every year.
If you are a brilliant negotiator, understand the property market like the back of your hand, are good at renovating stuff, and make the right investments, a house-flipping business can help your money grow leaps and bounds.
But even the most brilliant people fall short sometimes, and a mistake in house flipping can not only cost you money but a huge amount of precious time too.
You can easily avoid such setbacks though, with a proper business plan.
Why Do You Need a House-Flipping Business Plan?
A house-flipping business plan can help you in planning your finances, knowing the market as well as your target customer base, avoiding costly mistakes, and above all making wise decisions for your business.
With the help of a good business plan, you can even turn house flipping into your primary source of income. It can also make managing your business smoother and free of hassles.
And now if you are wondering how to write a business plan, let’s move on to our next section.
How to Write a House-Flipping Business Plan?
A good business plan consists of a well-rounded executive summary, a clear operational strategy, a thorough market analysis, smart strategy implementations, a precise company summary, and a practical financial plan.
And if you do not know where to start and how to include all of the above in your plan, you need not worry. Several resources can help you at the beginning as well as throughout the writing of your business plan. You can either use a premade business plan template or an online business plan software that would help you write a customizable business plan.
House Flipping Business Plan Outline
This is the standard house flipping business plan outline which will cover all important sections that you should include in your business plan.
- Executive Summary
- Mission Statement
- Vision Statement
- Products and Services
- Management Team
- Success Factors
- Financial Summary
- 3 Year profit forecast
- Company Summary
- Products and Services
- Funding Required
- Startup cost
- Market Analysis
- Industry Analysis
- Market Trends
- Target Market
- Strategy & Implementations
- Sales Strategy
- Advertising Strategy
- Industry Networking
- Direct Mail
- Open House Events
- SMS Marketing
- Pricing Strategy
- Sales Forecast
- Personnel plan
- Company Staff
- Average Salary of Employees
- Financial Plan
- Important Assumptions
- Brake-even Analysis
- Projected Profit and Loss
- Profit Yearly
- Gross Margin Yearly
- Projected Cash Flow
- Projected Balance Sheet
- Business Ratios
What to Include in a House-Flipping Business Plan?
There are several sections that you need to include in your business plan, here are a few major ones:
1. Executive Summary
This is the first section of your business plan but should be written towards the very end. Writing the executive summary helps you sum up your business idea properly. You can include the following subsections in it:
- Vision: This section consists of your vision for your business, it should include where you plan to take your business and what you wish to achieve with it.
- Management Team: In this section, you should include everything about the structure and the roles and responsibilities of your team as well as the management structure and system of your company.
- Financial Summary: This segment would consist of your financial history, the current state of your finances as well as your profit forecast for the next three years.
Writing a good executive summary can help the stakeholders of your business understand it better.
2. Company Summary
This section consists of all the information about your business from its management system, services, and its finances. You can break it down into the following sections:
- History: This section gives an overview of your business’s history.
- Products and services: This section consists of a description of all the services your company offers.
- Required Funding: In this segment, you will include the funding your business requires, what you plan on doing with it, and the projected growth an investor can achieve with it.
3. Market Analysis
Market analysis is specifically important in a house flipping business, as thorough research on the buying and selling behavior of people can be of great help to your business. You can divide this segment into the following subsections:
- Market Trends: This section is important for knowing the current trends in the property market and how those trends can help you earn profit.
- Target Market: Knowing your target market can help you immensely while formulating your marketing, sales, and pricing strategy.
4. Operations Plan
This section would consist of strategies to achieve your long-term and short-term goals. As a house-flipping business, you can include your business milestones in this section and how you plan on achieving them.
5. Strategy and implementations
Once you have business goals you’ll need strategies to help you in achieving them. The following strategies should be included in your business plan.
- Sales Strategy: Here you’ll include the position you stand in the market and how you stand apart from your competition. Specifically, this section should answer the question, Why should a person buy from you?
- Advertising Strategy: It is important to have a good advertising strategy as it helps your potential customers in knowing your business better.
- Pricing strategy: A house flipping business relies on your pricing strategy, hence it is important to have a good one.
6. Financial Plan
This section should consist of the following:
- Business Ratios
- Projected profit and loss
- Projected business ratios
- Projected cash flow
House Flipping Business Plan Summary
In conclusion, a good business plan contains all the aspects of your business and strategies for its growth. In a house-flipping business, a plan can stop you from making costly mistakes and make your business a strong and reliable source of income. So, if you want to start a house-flipping business go ahead and start planning.
After getting started with Upmetrics, you can copy this sample house-flipping business plan into your business plan and modify the required information and download your house-flipping business plan pdf or doc file.
It’s the fastest and easiest way to start writing your business plan.