How To Develop A Business Plan: The Business Planning Process
The purpose of the business planning process is to help businesses and professionals identify and measure opportunities, develop new strategies and tactics, improve performance, and determine necessary resources to realize the benefits of the business.
Real estate business planning is a creative and dynamic process. To help communicate the benefits and execute the real estate business plan, there are many approaches that help frame key issues and topics. Most approaches identify five key areas that should be addressed as part of any commercial real estate business plan:
- Analyze and Segment the Market
- Craft A Client Focused Value Proposition
- Design Operating Model and Processes
- Evaluate Resources, Environment and Culture
- Execute and Implement the Plan and The Business
Although, the details of the business planning process here are applied to developing a commercial real estate broker business plan, the principles and process are generally the same for any business plan. An overview follows below.
Analyze and measure the market: The first section contains articles identifying market segments. Understanding and identifying the particular market segments sets the stage for any business planning process. An overview of traditional commercial real estate market segments are provided as well as an overview of the competitive analysis.
Define the value and the positive difference that will be delivered to the client: Once the target market has been defined and selected, the value proposition can be defined. The value proposition is the value and experience received by the client which drives the business. Every aspect of building a business and brand must be focused on accelerating the value proposition.
Design and structure the business and the team to deliver the upon the value proposition: Execution and design is the premise of the next stage of the process. Articles address the operating model, business process, and technology that enable the business to deliver for its clients. Designing the business also includes team building and determining if any outside capabilities will be needed.
Evaluate the resources, company culture and organizational environment: The feasibility of a business plan depends on having the resources available to effect it. It also depends on the organization's acceptance of such a plan as well as a fit with the organizational culture.
Implement and execute the business plan: Implementing a business plan is only the beginning. Once the plan is effected, continual effort needs to be made to measure success and keep things on track. Continual management and evaluation will be necessary.