“A goal without a plan is just a wish.” – Antoine de Saint-Exupery

“If you don’t know where you are going, you’ll end up someplace else.” – Yogi Berra

“By failing to prepare, you are preparing to fail.” – Benjamin Franklin

How current is the business plan for your multifamily property? If you said “Years” or “Business plan? Why would I need a business plan?” we need to talk.

According to the Small Business Association, a business plan is “an essential roadmap for business success. This living document generally projects 3-5 years ahead and outlines the route a company intends to take to grow revenues.”

The question isn’t “why would you?” it’s “why on earth wouldn’t you?” The business plan is your strategy for how you intend to make your business a success and every multifamily property needs one. But before you get overwhelmed in what you believe the minutiae to be for this process, take a breath. Now, follow these steps:

1. Write a mission statement. This is a one-sentence explanation of why your property exists. Example: “Providing residents with professional, courteous, and timely service that exceeds their expectations is not an accident.”
2. Write a vision statement. This is a one-sentence forecast of where how you see your property in five years. It’s the essence of what you want your property to become. Example: We are the leader in providing quality, smart growth, multi-family rental housing.
3. Identify your market. Who is your target audience? Have you done any research to understand that typical consumer who comes looking for a place to rent? With an understanding that exclusions cannot be made, there is still a need to understand who your prospects are so you can develop tailored marketing messages. Its critical to understand who they are so your property and staff are prepared to meet their needs.
4. Make a list of goals. Aside from ‘make money,’ what would you really like to accomplish with this property? Consider the potential in the community, in the lives of staff members, etc.
5. Make a list of marketing tactics. Now that you know a bit more about your target audience, it’s time to tailor some marketing tactics. Every property needs a website where prospects can come to gather information and view photos. This should be a given. Beyond the website, however, what will be your next steps? Will you invest in print ads? Social media outreach? On-campus promotions?
6. Project your finances. Time for the nitty-gritty. You need to make reasonable financial projections so that you can track your progress against your goals. What is a reasonable gain or loss you expect from the first year of operations? Second? Fifth? Put this all in a spreadsheet and track it carefully against actuals.

What you have now is a nice beginning to a formal business plan. It’s a living document, which means it’s flexible to change as circumstances and conditions change. So, as occupancy fluctuates with the market, so, too do the financial projects. And, as your typical renter profile morphs, so, too, do the marketing and communication tactics you use to speak to the market. 

“The business development process is not something you do up front and then you’re done. It’s a continuous process of innovation, quantification, and orchestration. It’s a living system that you continue to evolve.” [Sources of Insight]