So, you want to open your own property management company. You need a business plan. It’s a road map that provides direction. In other words, by planning ahead you can get from here to there, and avoid any bumps in the road! Be sure to keep it short and concise, and remember, this is a living breathing document that will evolve and be refined as your business grows.
Here’s how to create your plan that will help guide your business from start-up to successful company.
Research the property management industry as a whole and within your region. You’ll need to take a look at:
- Industry trends
- Industry growth/estimated sales
- Major PM companies
- Where you fit in -- your property management’s place in the industry
In this section, you will include details on your company history, state your vision and mission, and your ownership structure or an organizational chart. Be sure to include your team’s expertise and how business decisions will be made. Describe your business and services in detail and identify the marketplace needs for your property management services.
Target Market Analysis
This part of your business plan is invaluable. Take the time you need to really understand your target market. This section should successfully answer these questions:
- Who is your target market/customer? (e.g. real estate investors, commercial building owners, etc.)
- What are their needs?
- How are their needs currently being served?
- Where are they located/what geographic location will you serve?
- Who are your main competitors in this area?
- What are your competitors’ strengths and weaknesses?
- What’s your competitive advantage?
Property Management Marketing Plan
Now that you (and your potential investors) know how your PM business is different from the competition, this is where you lay out your property management marketing plan. This section should tackle:
- Where will you market your services? (A neighbourhood, a city, a region, province-wide, etc)
- How are you going to make potential customers aware of your services? What type of marketing channels will you use? (e.g. paid online advertising, print advertising in what publications, social media, etc.)
- What is your sales strategy? Will you have a dedicated business development person? How will they fill their pipeline with qualified leads?
- What is your pricing strategy? How will you set your fees – will it be a flat fee or percentage fee? Will you have a tenant placement fee?
Now that you knowhow to market your business, what are the logistical elements that you need to turn your business idea into reality?
- Suppliers – Who will you be working with to address maintenance issues?
- Internal Teams – Who will be servicing your clients and the tenants?
- Facilities – Where will you and your team work? Will it be a virtual team, each working from a home office or will you have an office location?
- Equipment – What tools and technology do you need to do the job? List everything from your property management marketing tools, computer and printer needs to things like snow removal equipment.
- Inventory – What inventory needs to be on hand to run a successful business?
Essentially this section shows that you have a deep understanding of your supply chain needs and contingency plans for emergencies, like a fire or business interruption.
A framework of your PM company's growth strategy is vital to a business plan, but it’s not complete without the numbers to back it up. This section outlines your company’s financial feasibility. You’ll need two views – historical and forecast. It includes balance sheets, cash-flow statements, profit and loss statements, and expenditure budgets. You will also include projected cash flows for the next one, two and up to five years.
Summary and Appendix
Now that your property management business plan is complete, write a concise executive summary that is easy to understand and draws a synopsis of each key section. At the end, you will include an appendix of all financial data, market research and other documents you may have referenced in your plan.
How Property Vista Helps
Property management software is an invaluable investment for your business. We’re hereto make sure you get the best ROI possible. At Property Vista, we offer a range of software solutions covering all types of properties, including residential, commercial, condo / homeowners’ association and student properties. All our solutions are easy to use, mobile-friendly and scalable. Learn more about our suite of property management software!