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1.4 Keys to Success Analysis Questionnaire

What are the keys to success and why should this information be included in a business plan for a real rstate office?

The keys to success section of a business plan is a very significant part of the plan since this is where a small business owner like Jose Garcia gets to write down what things have to happen for the business to succeed in the days ahead. The reader of the business plan who may be a potential lender or partner needs to know how successfully an owner like Jose Garcia will be able to execute on the plan that they have put together. This is where you get the opportunity to tell them about the key elements of the plan that need to be successfully executed or reached for the success of the business to be a reality.

Items that we typically recommend small business owners like Jose Garcia mention here are:

  1. Financing: As we all know - financing is key for a small business and many business plans simply won't take off without adequate and timely financing. Here is where a small business owner like Jose Garcia will mention the significance of getting the financing in a timely manner and
  2. Location: In most businesses, the negotiation of the lease for the business premises is critical to the success of the business. Land the right location at the right price and you could have a tremendous advantage over the competition. Don't get the right location and you may suffer and fall behind even if you have the best management team and business plan. In retail oriented businesses, location is king. It may not be bad idea to include the addresses of the locations and the price per square foot that you are looking for in this section of the business plan. In the event you are an existing business, you can always talk about the continuity of your existing lease. More businesses have failed due to their inability to renew on an existing lease then we would like to mention - please treat this aspect of your business very carefully.
  3. Staff: The ability for a small business like Home At Last Realty to successfully hire, train and deploy a staff that will handle the day to day operations of the business is another key element that contributes to the success of the business. Not being able to build a successful management team or not being able to retain a key employee of your staff can greatly affect a small business - this is where you mention an item like that.
  4. Governments Permits & Approvals - many small businesses are dependent on getting special approvals and permits that allow them to conduct their specific business. For example a mortgage broker needs a special mortgage broker license to practise in certain states. Gas stations need to pass environmental audits without which they will have a very tough time getting financing - these are examples of the dependence on the government body for permits or approvals.
  5. Purchase Price - many times, a small business owner like Jose Garcia may be looking to buy a business like Home At Last Realty and their business plan may be based on the purchase of the business coming in at a pre-determined price. Clearly that price may be subject to change due to market conditions and that in turn will affect the cost structure and leverage of the new business owner. Besides all these we also recommend that any other special or important consideration that is required for the business to be successful, be mentioned in this section of the business plan.

What are the implications of not mentioning a key element in the business plan for a small business like Home At Last Realty?

The implications could be significant for a small business owner like Jose Garcia. The most important repercussion could well be that a lender or partner may choose to take negative action against the small business in the event the business was not able to execute on its business plan due to a key element that was not mentioned in the plan itself.

Now we are not suggesting that this section of the business plan needs to be a legal disclaimer that lists every little thing that may possibly go wrong in the future, but key and important elements must be mentioned and if there are many key elements - well then you just make sure that you list them all up front. It is much easier for a small business owner like Jose Garcia to set the expectation of the lender or partner right at the very outset than have to answer questions later about not including key elements in this section of the business plan.

A lender may choose to cancel the line of credit or business loan that they put out for the business and a partner may choose to revert to legal options in the event a key element or variable was left out of the business plan like the successful closing on a key contact from a client or getting permits and approvals from the government that have a history of being hard to get.

What can a small business owner like Jose Garcia exclude from the key elements section of the business plan?

We always recommend that small business owners like Jose Garcia not include the most obvious elements that affect every business in this section of the business plan - for example - the economic health of a target market like Alameda County, California. The reason we don't recommend stating the obvious is because while it is important to the general success of the small business, it by no means unique to the small business itself but is in fact an element of the larger market place that affects everybody.

Quick Links:

  1. Go to the Corresponding Business Plan section for this industry.

Small Business Owner Resource Center


Articles on the Small Business Financing Sources, the Small Business Loan Basics, small business loans Checklist and SBA Loans are incredible sources of knowledge for the small business owner.



Credit Report and Credit Score Analysis, how to Read a Personal Credit Report and all about Business Credit cover the intricacies of credit and are required reading for everybody.



The Foundation Grant Directory is a free listing of sources for grants by state. Why not look if there is some free money out there for your business. Hey - you never know!



The Business Loan Application covers every item you will need in your loan package and tells you how to get approved for business loans.



Fire your loan broker and use our Free Business Loans Bank / Lender Directory to find every bank in the country lending to small businesses.



If you are looking to start a business - look no further.  Check out the Free Incorporation Guide discussion and the State Incorporation Resource Directory.

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