How To Write a Property Development Business Plan

man handing keys to a woman, the keys say home

A business plan is an essential part of any property development company, providing all vital information regarding how the business will run and operate while securing funding. Consider information required for a general business plan and expand on this for your sector. 

What are the Benefits of a Business Plan?

  • Writing your business plan helps gain in-depth knowledge of the industry
  • A business plan is something you will revisit frequently with new ideas 
  • Sitting down to think about your business at this level of detail gives you clear and informed ideas
  • A business plan helps secure investor funding or bank loans

What Should I Include In My Property Development Business Plan?

  • Acquisition
  • Funding
  • Development
  • Structure
  • Exit Strategy
  • Financial Projections
  • Sales and Marketing
  • Strengths, Weaknesses, Opportunities and Threats Analysis
  • Employees
  • Market Research

Acquisition

This should be a detailed description of plans to buy property, price ranges, projected timescales, estimate exit value, construction types, and planning permission status. 

Funding

This section requires a detailed outline of all capital needed to purchase properties, including personal investment, outside investment, and loans.

Development

This should outline your plans for the development of buildings, including any conversions and extensions. Consider if you will be developing land or property and if planning permission will be needed. 

Structure

A description of the company structure, be it sole trader, trust, partnership, or company. To begin with, it may be easiest to set up as a limited business, however, it is worth doing research if you are not aware of your options. 

Exit Strategy

Outline your plans to generate revenue from your properties, such as selling or renting. You will also need to consider tax relating to buy to sell or buy to let.

Financial Projections

One of the most important aspects of your business plan is to outline financial projections, including profit margins which cover profit compared to revenue, profit compared to cost, and return on investment.

Sales and Marketing

It is worth researching different marketing techniques and adding these to your business plan. 

Strengths, Weaknesses, Opportunities and Threats Analysis

This section is particularly important when seeking external investment. This should outline everything you can think of that may be applicable to each section. Consider competitors, material costs, and market values among others. 

Employees

A detailed hierarchy should be included with a diagram that shows the structure, including directors, consultants and anyone else involved long term.

Market Research

Market research is perhaps one of the first steps in developing your business plan, having this specific data will help with your sales and marketing plans. 

 

Your business plan is important, it is worth taking your time to develop and research your ideas while creating a well-structured and informative plan which can be referred to for all business questions. 

For advice and information on business plan writing refer to our blog or read further information about our business plan writing services. CBM can also be contacted via the contact form on our website or call our expert team on 01604 420 420.

Share this blog