The concept of using crowdfunding to raise capital for your property management business may seem attractive, and may very well be an excellent vehicle for driving the growth you’re after. It’s important to note, however, that crowdfunding isn’t a magic solution. In fact, the majority of campaigns fail, mainly because they lack the proper planning. Before embarking on such a venture, it’s absolutely critical that you develop a solid, comprehensive business plan ahead of time. This will vastly improve the chances of your crowdfunding campaign being successful. Here’s why.
It will help you hone your strategy
Simply stating that you’re seeking growth won’t be enough to help you actually achieve your objectives. Developing a business plan can help you work out all the kinks and get all your ducks in a row so that once you receive the funding you’re after you’ll be able to hit the ground running.
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It will help you determine exactly how much you need
Just like pitching to a venture capitalist, crowdfunding requires you to prove what you need and, more importantly, how you plan on using the funds you raise. For instance, if your goal is to grow your portfolio by a certain percentage, do the math to determine how much capital that will require.
It will help set realistic expectations
There’s no question you will face certain obstacles beyond just the funding you need to grow your property management business. Creating a business plan helps to identify what these obstacles will be and, more importantly, your strategy for overcoming them. Having clear and realistic expectations ahead of time is essential.
It will help you define your unique value proposition
There are plenty of property management firms out there, so why should would-be investors take a chance on funding your campaign? You have to be able to demonstrate this if you want your efforts to yield positive results. Developing a business plan will help you to identify what makes your organization stand out so you can then deliver that message to the masses.
It will ensure that your funding is maximized
By knowing ahead of time how much you need, what you have to offer, what you should expect, and how you plan to achieve your goals, you’ll have a much better chance of leveraging the funding you get to its maximum benefit. This will help you achieve your objectives effectively and efficiently and may also help you better prepare for future funding initiatives.
Have you used crowdfunding to raise capital for your property management business in the past? What tips, tricks and best practices can you offer to help others be as successful as you? Please share in the comments below.
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