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GOLD! Golden Nuggets- Tips, processes, & How To's

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DeletedUser2

Guest
Ok, So I get alot of questions on how I do some of the things I do.
I am starting this thread mostly for me to dump my brain out every now and then

and to add some of the processes I do, some of the tips, and from time to time HOW TO's

This Is a thread for me to dump stuff, but feel free to Add things. All I ask is that you put it in a process format. so someone could pick it up, understand what it is, and go do it.

This thread is for action takers, who just needs the punch list to go

Over the Years I have come up with mini systems, or micro processes I will be sharing them here.
 

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DeletedUser2

Guest
Here is a process around marketing.
for creating quick impact full videos.

I just Love the google/youtube tool


Here is how to make a quick video with some punch

I made 1 quick video,

then I sat back and thought if I only had 7 Lines to express my "message"
what basic rules could I create

so any one of my outsourcers can crank these out.


Here is what I Came up with.

1. Your Target markets BIG QUESTION

2. Your target markets REFINED question (when the big one doesn't
answer it)

3. BIGGEST BENEFIT you can give them (if they had the answer now)

4. Next Biggest Benefit you can give them

5. Emotional Hook (or heightened emotional state they are experiencing
or seeking out)

6. Decision that you want them to make

7. Fast forward to their dream as if it already happened.



By structuring your 7 lines like this, you can walk someone through a
sequence that ends with emotion, and a call to action and the benefit of
doing it. For short videos, that you can make, this is a huge marketing
tool Google handed us.


I just thought I would share the micro process I came up with for some of my SEO outsourced employees.


As an example of one I did (not the best one)

www.gardenologyshop.com - YouTube


for the funny one I did for fun

Google is big brother - YouTube

To create your own, go to
https://searchstories-intl.appspot.com/en-us/creator/

More to come.
Enjoy
 
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DeletedUser2

Guest
Here is another process I came up with for my Virtual Assistant.

It was very quick for her to do each day, and it yielded me about 1-2 interviews a month, PER topic as seen below.

This is one of the best, free ways to get PR with out paying for it. and from some trusted credible sources.
if you want to promote your website.


The Haro Process
1. Sign up for HARO, (help a reporter out) at petershankmen.com (aka Haro.com)
2. You will get 3 emails a day from this site. You should only take between 2- 5min each time to do this.
3. When receiving and email read through the list of requests looking for the following topics. Any of these topics will work. As you go, you may add to the list. Over time, I may also email you additional topics

1. Topic: startup/ Raising money, Raising capital,

a. Startup business

b. How to start a business

c. How to raise money,

d. How to raise capital,

e. Dealing with investors

f. Making good investments

g. Needing interviews for business, investments, or startups
4. Next look for the following Real Estate

a. Real estate,

b. Foreclosures

c. Banking crisis
5. Next looking for subjects with Online business/Marketing

a. Online business

b. Make Money online.

c. Internet business startup.
6. Then look for subjects on Chiropractic

a. Chiropractic health,

b. Chiropractic processes

c. (body) Core strengthening

d. (body ) Core Exercises

e. Anything with chiropractic
7. Solar, Wind, Alternitive Energy

When you see the above you will then send them an email as they direct, (often times they may wish you to put something specific in the subject box)

Send them an email, and cut and past one of the below paragraphs into the email. Depending the on the subject.
And example is :
Real estate
Cut and paste from the real estate section,
Send email with that paragraph.
Blind CC me (BCC:) so that I can see what you are sending out. Make sure to send out so that the return email is (MyEMAIL)

Startup topics Raise money, Raise Capital topics


Hi, I saw your post on Haro, and wanted to let you know I am available for Interviews, Here are some of the areas of expertise that I could be interviewed for.
Startups, How to boot strap, how to start a business, how to raise money, how to raise a lot of money from angel investors, Dealing with investors, Management, Executive Management/CEO, private investment, both as an entrepreneur, and as an investor.

Please feel free to contact me if you are interested or need an interview
My contact information

NAME
Cell PHONE
WWW.DOMAIN.COM (DOMAIN RELATED TO TOPIC)
MYEMAIL


Real Estate

Hi, I saw your post on Haro, and wanted to let you know I am available for Interviews, Here are some of the areas of expertise that I could be interviewed for.
Startups, How to boot strap, how to buy apartment complexes how to start a real estate business, how to raise money for real estate, Dealing with investors, dealing with tenets, dealing with landlord Management, different types of investment in real estate as an entrepreneur/landlord, and as an investor.

Please feel free to contact me if you are interested or need an interview
My contact information

NAME
Cell PHONE
WWW.DOMAIN.COM (DOMAIN RELATED TO TOPIC)
MYEMAIL


Online Business

Hi, I saw your post on Haro, and wanted to let you know I am available for Interviews, Here are some of the areas of expertise that I could be interviewed for.
Startups, How to boot strap, how to start an online business, quick ways to fail to success in online business, outsourcing, PPC, SEO, Local SEO for brick and mortar business, copywriting for online success, good experiences/Bad experiences in online world
Please feel free to contact me if you are interested or need an interview
My contact information

NAME
Cell PHONE
WWW.DOMAIN.COM (DOMAIN RELATED TO TOPIC)
MYEMAIL

Chiropractic

Hi, I saw your post on Haro, and wanted to let you know I am available for Interviews, Here are some of the areas of expertise that I could be interviewed for.
Subluxation and treatment, Allergies and Chiropractic care, Innate intelligence of the body, Chiropractic and insulin, Chiropractic and whole body care, Chiropractic and core strengthening
Please feel free to contact me if you are interested or need an interview
My contact information

NAME
Cell PHONE
WWW.DOMAIN.COM (DOMAIN RELATED TO TOPIC)
MYEMAIL

Credit Repair

Hi, I saw your post on Haro, and wanted to let you know I am available for Interviews, Here are some of the areas of expertise that I could be interviewed for.

Credit Repair
Credit counseling
Bad Debt
How to recover from Bad Debt
Collection companies


Please feel free to contact me if you are interested or need an interview
My contact information

NAME
Cell PHONE
WWW.DOMAIN.COM (DOMAIN RELATED TO TOPIC)
MYEMAIL

Alternative energy, solar energy, wind energy,

Hi, I saw your post on Haro, and wanted to let you know I am available for Interviews, Here are some of the areas of expertise that I could be interviewed for.

wind energy
solar energy
energy saving tips
off grid living
DIY electric cars


Please feel free to contact me if you are interested or need an interview
My contact information

NAME
Cell PHONE
WWW.DOMAIN.COM (DOMAIN RELATED TO TOPIC)
MYEMAIL
 

wade1mil

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That's awesome! Subscribed. Speed++
 
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DeletedUser2

Guest
More Golden Nuggets

I wrote this a couple yrs ago and just found it again, So I thought I would add this.


8 proven business models that work on the internet (plus one more that you can build into a massive company)

1. Selling space
a. Provide free content,
b. Lots of SEO
c. Low PPC usage
d. Time vs money
i. More time less costs ($)
e. Focus is on SEO and Content Creation.
f. Pros- can do with little money.
g. Cons- takes lots of time.


2. Affiliate marketing
a. 2 sides
i. Be an affiliate for someone else
ii. Provide products to people who are affiliates
b. Provide other peoples content/ products
c. Lots of SEO
d. Moderate to high PPC
e. Pros-Allows for focus on traffic generation only
f. Cons- Less money and little or no back end
g. Advanced Model of affiliate marketing is PPC arbitrage


3. Underachiever
a. Create small “mini sites” sells 1 product
b. Small traffic, the goal is to make 20-100 bucks per day per site
c. Fast creation
d. Some ppc usage
e. Good SEO
f. Front end only.
g. Usually sold to affiliate marketers
h. Pros- fast quick creation, and setup. Then your done
i. Cons- must keep making new ones, and you keep selling to different customers.

4. Overachiever (funnel)
a. Create front end product
b. Create subsequent products in increasing price.
c. All products are more advanced level of the first.
d. Some PPC
e. GOOD SEO
f. Front end products and back end, and coaching, and continuity.
g. Pros- great for deep markets, and can make as much or more on front end product more stable business.
h. Cons-must be main focus. deep marketing techniques needed, and lots of product creation

5. Membership model
a. Provide either a “library of products” for members or a consistent service for monthly billing
b. Med PPC
c. Pros- constant revenue
d. Cons-constant Product creation unless service.

6. MLM
a. Multilevel marketing companies
b. Create front end product and either give away or sell. that will Introduce MLM program
c. Usually membership based.
d. Pro- usually high quality product,
e. Cons- may be difficult to sell MLM to people if they perceived it wrong.

7. Offline
a. Create product to deliver online, capture off line addresses, send sales letters, and direct mail letters to address
b. Pros- can be very profitable people respond differently to real offline letters
c. Cons- you MUST know direct mail, costs and profit model before doing this. Very easy to lose money this way if you don’t use an expert.

8. Ascension, or Social Ladder
a. Socially driven marketing. Providing increasing levels of product, or information tied to a socially recognized tiered system (they want to belong)
b. Gold level
c. Gold level plus
d. Platinum level
e. Platinum level plus
f. Diamond level.
g. The goal is to provide more content at each level, and by offering specials and discounts ect.
h. People are paying more to have more direct access to you.
i. Pros- People will naturally want to reach next level,
j. Cons- it is very character driven. Best for someone who has charisma

9. Publisher model ( mine)
a. Create a single deep funnel
i. Over achiever method
b. Create additional funnel in similar but different space with different expert.
c. Create additional products to cross sell between funnels
d. Seek out and find top experts in their field, as it relates to you.
e. Pros- multiple deep funnels can provide deep profits
f. Cons-must be able to handle manage larger organization, must be able to provide clear goals and directions to group. Must know how to best integrate various funnels
 

theBiz

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zen what is your background if you dont mind me asking, you seem really well rounded in business, have you been involved in lots of different businesses both online and offline?
 
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DeletedUser2

Guest
been a serial entrepreneur since 1991 (when I was 21)
Started and run 14 diff businesses, online and off line. (not all successful)
Bought over 250 apartments in 2.5 yrs starting with no money
Started a company, took it public, built it for 5 yrs. Raised 90M in money for it and other businesses of mine,
Was up to buying over 300 houses a week in 2007,
sold out 2007, Started online business in 2008,
buying up businesses, mostly websites now
hard money lender,
Angel Investor,
Coach for executives,
Do consulting for companies that want to raise money or go public,
Sit on a few boards of directors in a strategic capacity.
Deal Maker, and Strategic Connector.

so.... been around a bit. that's all.
 

theBiz

Silver Contributor
Speedway Pass
Jul 9, 2009
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Bought over 250 apartments in 2.5 yrs starting with no money
that's a contradiction hahaha

but seriously tell me how you did that and ill give you $100... ok ok $150. Honestly that's amazing.


Started a company, took it public, built it for 5 yrs. Raised 90M in money for it and other businesses of mine,
i secretly hate you

Was up to buying over 300 houses a week in 2007,
aaand i secretly hate you again lol

These are some unbelievable accomplishments and seems to even dwarf my "unrealistic" dreams of success. Great to have people around like this, thank you for your knowledge and time.
 

458

Platinum Contributor
Read Millionaire Fastlane
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May 21, 2011
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been a serial entrepreneur since 1991 (when I was 21)
Started and run 14 diff businesses, online and off line. (not all successful)
Bought over 250 apartments in 2.5 yrs starting with no money
Started a company, took it public, built it for 5 yrs. Raised 90M in money for it and other businesses of mine,
Was up to buying over 300 houses a week in 2007,
sold out 2007, Started online business in 2008,
buying up businesses, mostly websites now
hard money lender,
Angel Investor,
Coach for executives,
Do consulting for companies that want to raise money or go public,
Sit on a few boards of directors in a strategic capacity.
Deal Maker, and Strategic Connector.

so.... been around a bit. that's all.
I have a question, can you lay down the pros and cons of buying property vs being the lender for property?

Could you as well talk specifically on the liability side of buying vs lending and why you chose to stop buying and start lending.
 

Michael W.

Bronze Contributor
Read Millionaire Fastlane
Mar 2, 2009
206
126
94
Ok City, OK
been a serial entrepreneur since 1991 (when I was 21)
Started and run 14 diff businesses, online and off line. (not all successful)
Bought over 250 apartments in 2.5 yrs starting with no money
Started a company, took it public, built it for 5 yrs. Raised 90M in money for it and other businesses of mine,
Was up to buying over 300 houses a week in 2007,
sold out 2007, Started online business in 2008,
buying up businesses, mostly websites now
hard money lender,
Angel Investor,
Coach for executives,
Do consulting for companies that want to raise money or go public,
Sit on a few boards of directors in a strategic capacity.
Deal Maker, and Strategic Connector.

so.... been around a bit. that's all.
BRB. Reading every post of yours.
 

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DeletedUser2

Guest
I have a question, can you lay down the pros and cons of buying property vs being the lender for property?

Could you as well talk specifically on the liability side of buying vs lending and why you chose to stop buying and start lending.
Buying property
Pro, Long term appreciation, Value add by improving the property, increasing cashflow over time, can get leverage to buy multiple properties, or use little cash to buy. better ROI via value added activities.

cons, Management. until you have enough cashflow to pay someone else, its usually you who is doing it. Most people dont have the developed skill set with management, so it typically leaves a bad taste in peoples mouths, ( you hear all the BS bellyaching about how hard it is to deal with tenets ect...) do it long enough tho, and you will develop the skill set or go broke. :)

Lending.
Pros, more passive, nice place to park excess cash, decent returns if done right, less management, less hassel unless they don't pay, then only minor hassle. MUCH more liquid (if you needed cash tomorrow, and had to sell your house your stuck until it sells, where as I can sell 1 loan or multiple loans in about 3 days, regardless of the economy) , very cheap to outsource the management, Can make almost as much as a rehabber, with no working on the house :) , a default can either damage your principal position, or it can double or triple your profit.
Cons, less leverage, takes more cash, takes a higher level of understanding the rules/laws around lending, debt collections, and how to handle default. maybe slower than buying and fixing, no appreciation, (what you lend is what you get back, plus fees and int rate)

short and sweet, hope that helps
Z
 
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DeletedUser2

Guest
Just another Nugget

So here is another question I get.
How do i know if the product will be successful.

While it was talked about in the 4 hr workweek, some people needed to see it in action.

This is an actual test we ran on a product Idea a friend of mine had. While I said, it may not be worth it, she vehemently disagreed, so I showed her how to run this test, and we did it pretty quick

in the end she saved months of work, for a product that would not have made her enough money.

she ended up focusing on something that would and that's why you test. To kill bad ideas fast.
so you can really work on ones that are truly great.

The Test...
2011-05-19_2157 - xendolphin's library
 

dubaismartmoney

New Contributor
Nov 28, 2011
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top notch :urock2:

everybody should run theirs ideas trow the internet before advancing to other stages of development.

simple, elegant and effective.

Thanks :)
 

CPisHere

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Bought over 250 apartments in 2.5 yrs starting with no money
How did you get started with no money? Did you do this while running a business?

Was up to buying over 300 houses a week in 2007,
How is this even possible...?

Just curious: As far as your business experience goes, what types of businesses have you been involved in? Retail, e-commerce, Affiliate marketing, blogging, Service business, Lead generation...?
 

MJ DeMarco

Administrator
Staff member
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Was up to buying over 300 houses a week in 2007
I assume you were buying bulk portfolio properties from distressed lenders/REITS? Otherwise 300 houses a week is 42 houses A DAY, or nearly 2 houses an hour if you are working with no sleep, or 4 houses an hour if you are working 12 hour days.

That means you closed a house every 15 minutes. Care to elaborate?

BTW, thanks for some great info! :urock2:
 
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DeletedUser2

Guest
I assume you were buying bulk portfolio properties from distressed lenders/REITS? Otherwise 300 houses a week is 42 houses A DAY, or nearly 2 houses an hour if you are working with no sleep, or 4 houses an hour if you are working 12 hour days.

That means you closed a house every 15 minutes. Care to elaborate?

BTW, thanks for some great info! :urock2:
Yep Yep, we buying bulk REO, and bulk non performing notes.

We had built a whole network of RE investors around the country that we sold the Notes or the REO's too. With the Notes we often kept the servicing for the investors since we were geared for it, with a whole loan servicing platform.

Since we were able buy in bulk we were averaging a 25-30% on the dollar price point, (some as low as .09 cents on the dollar, some as high as .80 cents on the dollar) we could then turn and sell to investors at .50-.65 cents on the dollar if they closed quickly.

as an example, we would buy 100 houses on Monday in 15 diff states and have the bulk of it sold before Friday (maybe 60%) with the following Monday receiving funds from investors.

since we were bulk buyers, we would often purchase with a single contract, (if notes) or with separate deeds, or a master deed with the bank acting as a title insurer. (so not 100 single closings, because that would have been too much work)

it was very fast. if we found issues with title later (up to 2 yrs later in some cases) the bank would buy it back from us. since we had that guarantee, we often just passed that back down to the individual investors, speeding sales even faster.

Many of our local investors were repeat buyers we developed a reputation of buying back, or paying for, or discounting if there were issues.
since we were often in the buying banks problems and solving them, our local buyers were often in a similar market of solving problems, so they understood the model and it worked well.

the speed of the markets at those levels were amazing. we would get a new pool to look at Monday by wed we had our due diligence done, and a bid submitted, and we could close that Friday.

we built a pretty good reputation with the banks for fast closings. we often geared up for end of quarter or end of year pools. by doing that, we could get default managers (who were sweating bullets) and we would price as low as possible providing close before EOQ or EOY

We had a 75M LOC for closing pools fast, we would close a pool, sell off part of it, to reduce our cost basis in the pool then bring in joint venture partners in deals, who would fund the purchase of the pool from us, (replenishing the credit line) and moving the pool a longer term, maximization of the asset style of management.

We managed to outsource some of the elements of the process, by using many of the same networks that banks already use.

since we were private investors, and bought at a discount, our goals, and drivers of our business were much different than banks, who had restrictive regulations regarding bad debt, and non performing assets.

this company came about when I got tired of trying to compete with the sharks on the foreclosure court house steps. So i started going up stream.


Hope that helped illuminate how to buy 300 houses a week :)
 
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DeletedUser2

Guest
Ok, guys, here is a freebie
This is a process I started to think up a while back, I decided to formalize it in one of my mini processes.

I posted something like this in another thread, but I don't remember where. I am putting this here, as part of my semi random collection of golden nuggets


How to get 2K in google adwords fast and almost free.
First you have to find about 20 $100 coupons not that hard you could go to fiver at
http://fiverr.com/users/affiliatehelper/gigs/give-you-one-of-my-75usd-google-adwords-coupons
to get these. If you look around, you can find 100 dollar ones, easy too. But for arguments sake, it costs you 5 bucks.
you need to setup 20 google accounts. About 20 hrs worth
and 20 phone numbers (yahoo voice or Kall8)
2 bucks per number.
Kall8 800 Numbers & Toll Free Number Services
or
Yahoo number.
and you need 20 credit cards, with 5 bucks each on them. So 100 bucks

Totals
20 cards $5 each $100
20 numbers $2 each $40
20 hrs setup $4 each $80 (offshore)
20 coupons $5 each $100
Setup 1 keyword set 1 campaign 3 hrs $12

For 1 account its $5+ $2 + $4+ $5 =$16
10 accounts = $160
20 accounts = $320
Setup up accounts,
Install credit card
Install phone number
Pick a niche to advertise in, or if you have a product, use that.
Setup 1 adword campaign, download it, copy it, and upload to other accounts
Setup excel sheet with all info centralized
since you now have 20 accounts and 2K of nearly free google ad spend. Start spending
Goal: to get as close to break even as possible on the money. I.e. spend a dollar make a dollar. You now have 2k to go and try something else.
If you can make it profitable, like a 2-1 ratio, spend 2K make 4K.
Should be able to be done in about 2 days setup time, and run for a month. Or a week.
Even if you are close to “break even” you have made a profit.
Since you have spent about $320 to get 2K you would have to spend 1 dollar and make only .16 cents! To just break even.
This also assumes you pay someone to do all this work at 4 bucks per hr, overseas. (odesk.com)
Essentially you could get about 10K in advertising for a mere $1600 bucks. What a return on investment if you did this. You now have your grub stake to go out and try almost anything after that.

Z
 
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DeletedUser2

Guest
Here is some tidbits for offshore stuff.
Been a while since I looked but most should still be good.


recommendations on off-shore web hosting and domain registration,
1) https://www.zone.ee/ in Estonia
2) https://www.switchplus.ch/ in Switzerland
3) Runbox.com is in Norway
4) Cirrushosting.com is in Toronto (easy switch for Americans)
5) CCihosting.com in Panama
6) https://www.netpoint.ee/eng in Estonia
 

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OliverR

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Hi zen*******

I noticed you listed a couple of hosting services from Estonia. Have you been doing business through Estonia?

All the best

Oliver
 
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DeletedUser2

Guest
We were trying some black hat seo stuff a couple years ago, and ran off shore servers for testing.

we also like to make sure we are not subject to any single countries crazy making, (ie PIPA and SOPA)
 

roc

New Contributor
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Feb 12, 2011
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Since you have real estate experience, any good ways on picking up mobile homes, so that the notes can be traded in? Thanks roc
 

MJ DeMarco

Administrator
Staff member
EPIC CONTRIBUTOR
FASTLANE INSIDER
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Fountain Hills, AZ
she ended up focusing on something that would and that's why you test. To kill bad ideas fast.
so you can really work on ones that are truly great.

The Test...
2011-05-19_2157 - xendolphin's library
Now wait a second, as a part of this test, you solicited for people's email addresses and promised them a PDF in return, then delivered absolutely nothing?

While I totally love the concept of "testing" (and the goal of this experiment) the fact that you have to lie about giving something away, then don't, is unethical. When people "give" their email address, it is a form of psychological payment and when you fail to deliver, you essentially rip someone off. IMO, you need to deliver what you promise. Or, did you in fact deliver a PDF?
 
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DeletedUser2

Guest
the person was hell bent on delivering a pdf, and was half way through writing it.

I was trying to show her why she should test first.

she did end up giving out some tips, but the exercise was more for her to understand the concept of testing, small, and fast.
we deleted the list as well, since the responses were so small, it was not worth pursuing.

but that was the point i wanted her to see, was to test a market. in the purest sense did we over deliver on a promise? nope,
did we send them something ? ya some tips.

While I don't advocate lying, in your tests, I do think its better to test a good idea, or a headline or something before putting alot of effort into it. (she was already 2 weeks of work int a book that no one cared about) so the couple people on the list were deleted.

the exercise was more for her, and the mechanics of it, rather than the audience. so while I can see your point, I was showing her that i t could be done quickly and cheaply.

she has gone on to create a couple kick butt products and rolling out an amazing process now. so it worked, and that was the point.
 
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DeletedUser2

Guest
Another Tidbit.

While cleaning out my folder of random processes and Biz plans, I ran across a couple I wrote a few years ago. I know some people have a hard time writing biz plans but I can crank out a good first draft in about 2 hrs. I will be posting some That I did as 1st edits, and maybe later the final versions.

I wrote this one in sitting (about 2 hrs)

I know most fastlane concepts are Anti Biz plan, but I have found them to be invaluable for a couple reasons.
1. it forces me to think through what I am doing and want to do.
2. it highlights what I have not thought through yet.
3. it allows me to solicit feedback in a few minuets by giving the plan to someone and then letting them ask me questions I had not thought up yet.
4. its like exercise, it forces me into the discipline of actually thinking through the whole process and the whole business, giving me basic insights i might have missed if i was in to much of a hurry.

The point is, for me these biz plans, help me organize my thoughts enough to make me more efficient when I am executing the business.

and in some cases, they have helped me raise money. (alot of money) by showing someone that I have thought through the process.

I will post some of the biz plans I have written for the next few posts, as I find them in my store of random files. as I am cleaning and organizing them, I will put them here.

That is if its of any help to anyone. for fastlaners who shun Biz plans, this may not help at all. as a fast execution guy myself, I would not spend more than a day or so on a biz plan, because the more time on the bplan, the less time on execution.

I will also edit these to remove the "players" or management as well.

Feel free to use the plan as you like, provided I don't see them in some ebook someplace.


So, with that brief explanation, here is a Business plan I found today.
(this was the first draft, about 2 hrs to write. the finished one with proforma I doubt I will post, because I still use that to run that biz)

Business Plan
Doing It the HARD Way
A hard money lending company
A development stage company



Executive Summary

Our company was formed around targeted niche opportunities in local real estate markets, specifically the emerging market of foreclosures, rehabs and real estate investment from a lender perspective. This is a hard money lending company primarily focused on lending to real estate investors on properties at below market prices. Our company focuses on getting the real estate investor the money he needs to purchase and rehab the houses. Charging higher interest rates, with points and lower-than-average loan to values, we are able to reduce risk, create income streams, and liquidity to a market with high demand and high returns.

Objectives

• Create a constant stream of repeat customers who consistently borrow
• Create cash flow through monthly payments and yield spread
• Reduce risk by using a strict criteria, i.e. making loans at 65% of value
• Provide a source of loans that private investors can purchase with these characteristics
• To periodically sell to the secondary market to recapitalize our line of credit when necessary
• To create a workflow that automates the entire process, keeping tight controls on the money and lending criteria
• Create a recapitalization process for quick turn around of defaults
• Create yields in excess of 30% per yr



Overview of investment strategy

Our goal is to create multiple loans to real estate investors. The focus is chiefly investors who deal in rehab, resale, rental and foreclosure bailout of single family residences. A small portion of the investment loans we make will cover commercial real estate, or new home building. This can be done by:

• Creating strict lending guidelines that develop very consistent cash flows from lending activities
• Reducing risk by good loan to value guidelines
• Reduce risk by creating loans that may be sold to the secondary market at any time
• Keep costs low by outsourcing non-core operations to other companies including appraisal, servicing, and collections


Keys to success

The top keys to success of this venture are
:

• The right managers and key personal
• Knowing the market or being able to determine the market quickly
• Deep real estate knowledge
• Good default management
• Good relations with investor/borrowers
• Effective servicing tools
• Good underwriting
• Quality deal flow
• Multiple exits including secondary market sales



Company Summary

The company has two primary executives, xxxxxx and xxxxxx. A Virtual Office is used to keep costs low, and provides for a fully digital environment. This allows information to flow quickly and response to loans to be just as quick. Virtual Assistants and a Virtual CFO provide quality reports to investors, and automated workflow. With this program, we are able to provide additional services to other hard money lenders, giving them the leverage of an automated workflow and back end services (including placing loans with other service’s, and secondary market sales.)

Industry

Lending takes many forms for the owner occupied properties. However with the rise of foreclosures will come the inevitable rise of additional real estate investors. Real estate is typically a capital intensive venture with few real estate investors able to really borrow from the banks. Most banks have an upper limit on how many loans they will give a borrower as well as how much they will loan. There is a considerable opportunity to supply the residential and commercial real estate investor with financing to purchase residential real estate. The industry is typically fractured and a very cottage industry. This allows our company to step in and consistently provide services.

The types of loans we will be making:

• Hard money non-owner occupied residential loans
o The largest segment that we will focus on comprising 90% of the loans we expect to make

• Commercial loans
o Commercial property comprising about 5% of the loans we will make

• 2nd loans for bridge or foreclosure loans
o Quickly placed 2nds for the benefit of keeping the house from foreclosure. Highest return, higher risk, and comprising 5% of the loans we make
Market

The first year, we will be making loans largely in two states: Texas and Utah. After the first year we will expand to a few other markets with our focus on states based on

• States that have acceptably short foreclosure laws
• States that have acceptable rates on usury laws
• States that the principals feel that they have enough market knowledge to determine the validity of property valuations
• States that have experienced investors with whom we have a personal relationship who and represent a good risk


Sourcing strategy


Our principals have a deep knowledge and experience in real estate investing. We also currently have a number of investors to whom we deem to be an acceptable risk to make loans. These investors are experienced, have systems in place, and have criteria of buying that match our own criteria for lending.
We will also be developing these sources:

• Web based marketing-- (limited) form based website that will allow user to upload information directly into our database
• Mortgage brokers-- there are a number of brokers that have been unable to get a loan approved via the normal channels or just have to short a window. We expect to see deal flow from this source
• Hard money brokers-- there are a number of HM brokers that already have more deal flow than some of the their lenders can fund. Subsequently they are looking for more lenders.
• REI Groups-- there are a number of REI groups, (real estate investors) where we may look for the investors. We believe that we will have more investors looking for cash than we may provide.

Outsourcing


In order to keep our costs low, with out a lot of extra bulk in our operation we will be outsourcing a number of our operations including:

• Due Diligence
o We will be using BPO (Broker Price Options) in some cases. These range in the 100-150 per unit costs.
o Full Appraisals. These are done by professionals, used by the banks as well. We will use appraisers that are familiar with rehabs.
• Loan Doc preparation
o This is typically done by the title company but we will have a number of specific documents that we will send to the title company
• Servicing and Collections.
o We will be using an outsourced servicing company that will cost approximately $9.00 per month, per loan with a $25.00 boarding fee.
o We will have an in house “relationship manager” who will deal with the investors directly, if and when communication stops. We will hand the file over to a collection company that is familiar with our approach to collections and business.
o Foreclosures are done by outside attorneys
• Virtual Assistants
o We have a number of Virtual Assistants and Virtual Underwriters who can handle the calls, take the applications through the process of Due Diligence, and provide the recommendations. With a digital network and a paperless office, we can create many automated non-local workflow processes, reducing our overhead costs
• Virtual CFO
o Bookkeeping and CFO duties are also outsourced. Reports will be generated for the investors, and automated through custom software that combines servicing, collection and investment info into a comprehensive report.
Software

In order to expedite the whole process, we are developing software that will
• Accept information from multiple sources and standardize it
• Accept preliminary investor information and qualify the data for a possible loan
• Price the loan if outside the “box”
• Create the paperwork and send the instructions to accounting and to the title company
• Create a “coordination time sheet” based on the timeline for the loan to occur
• Create an “investment analysis” for matching to criteria
• Follow and control workflow process front to back
• Create “summary page” to be sent with original documents to loan boarding process for loan servicer
• Create “tape” for electronic boarding to servicer
• Create tickler to “relationship manager” for future calls and put on a “to call list and time frames”
• Create drill down capability for the managers to look from a top down perspective on portfolio, down to loan level information
• Make coffee

We are expecting this software development to take 3-6 months total, and cost in the range of $10,000-$15,000. With the experienced team we have on board, we expect this project to only take a small portion of the managers’ time.

Competition


The hard money lending space is very fractured. Typically, hard money lenders are a cottage industry and there are few “nationwide” lenders. Larger lenders are typically focused on either larger transaction dollars per loan than local lenders. Many have 250-500k lending minimums. Due to the complexity of underwriting “investment deals” there are few standards to the industry.

The Secondary Market

The secondary market is a large “unofficial” market place whereby buyers and sellers of various debt instruments go to complete transactions. It is a large, invisible market that almost any kind of debt imaginable is sellable. Typically a well written hard money loan can be sold in 1-3 weeks for at or near par. In some cases, if the paper is written with prepayment penalties, or structured correctly it can even be sold for above par. Our management team has over 4 years experience selling and purchasing debt in the secondary market. Experience has produced a number of contacts that can facilitate sales through this channel. Investors seeking higher than average returns, with lower risk through lower LTV, often turn to hard money loans for their portfolio. As a result there is often a high demand for hard money loans in the secondary market.

There are a number of buyers in the secondary market for hard money loans. Most prefer bulk sales of notes as opposed to single sale or one-of-a-kind transactions. Professional loan servicing also enhances the purchase price and attractiveness of the loan. Other features that enhance the note sale are credit score, job length, and collateral. The secondary market is a huge liquid market, which can purchase portfolios of mobile home notes, quickly, adding a large dimension of liquidity should cash be needed.


Exit strategy

One of the keys that our company has in place is familiarity with the secondary market and its advantages of multiple sales via this pipeline. To provide liquidity for our investors or to increase the volume of turns that are possible in a year, we may turn to secondary market sales. As investors rehab a property, the property usually increases in value, and increases in possibility of sale. This turns into payoffs of the loan, which are then re-loaned out to new projects. If the real estate investor is not willing to pay off the loan, or is unable to, then we will foreclose on the property. At the LTV that these loans are made, it increases the chance that a full payoff will occur at the foreclosure sale. If we accept the property, our management team has experience in disposing of the property in a number of ways including direct sale, sale via owner finance, in which we carry the paper, then resell the paper, or refinance through a more traditional source, thus returning liquidity to the lending process.

The Players
xxxxx
 

CPisHere

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zen*******, I agree that business plans are helpful for the thought process, cash and cash flow needs, and finding issues with the idea. The reason that I don't like business plans is because once you start the business, they usually go out the window. People try to stick with their business plan, but you have to adjust to the market.

I think business plans are great if you recognize them for what they are - an initial plan, not a definite map.
 
OP
OP
D

DeletedUser2

Guest
zen*******, I agree that business plans are helpful for the thought process, cash and cash flow needs, and finding issues with the idea. The reason that I don't like business plans is because once you start the business, they usually go out the window. People try to stick with their business plan, but you have to adjust to the market.

I think business plans are great if you recognize them for what they are - an initial plan, not a definite map.


exactly,
in fact here is another biz plan.

we ran this company for 3 months prior to selling it. I didnt even get the whole business plan finished before we sold it.
another 1 sitting type plan


Business Plan
Adaptix Medical Supply
Medical Supply and Oxygen Company
A development stage company
This is not a prospectus



Executive Summary

Adaptix Medical supply is a DME and other Disposable Medical Supply company. We sell to Medicare, Medicaid, and other insurance backed programs that will pay for patients to receive certain useful toys used in health care of the patient, either at home health care, or as patients of a doctor.

Objectives
To build a multi office service business, with a centralized command and control structure to better implement a company wide efficiency for many of the redundant but mission critical tasks .



Overview Company Strategy

Our company Strategy is to Identify markets that we feel we can bring services to. By setting up a metro based administrative system. We can extend our reach far into the rural areas where there is little or no services. By bringing efficiency and a highly networked system to rural areas, we can bring large volume buying to the little offices. Allowing the sales to focus on sales, the deliveries to focus on deliveries, we can drive sales, and patient retention. by setting up our offices in 1 of 2 ways, we can find and retain key employees. Either by finding the absolute best sales person in the area, or by having a person, buy in thereby reducing our cost of setup and bringing them into the fold as an owner operator.


Keys to success

The top keys to success of this venture are:
 Service
 Sales
 Rural outlets
 Niche Marketing
 Focused accounting and billing to insurance companies. As well as follow up
 Reduced administration for the rural offices
 Finding and Keeping Top notch Sales people
 Finding and retaining Delivery Drivers that double as representatives.



Company Summary

Adaptix was formed for the modeling out and rolling out of a multi office, centralized admin DME and medical supply company. We will have several specific locations that will wholey company owned, and will extend our reach into the rural areas by Joint Ventures (JV’s) with top notch sales people in the area. Focused population demographics will allow us to find and aim our efforts in markets with higher than normal patient types. The goal is to build up at a minimum of 10 offices throughout the state of Texas before expanding to additional States. We have the eventual goal of 50 offices / JV’s. in the next 3 yrs.

Industry
The medical DME and State of Texas CBA programs are backed by either state funded, or federally funded programs. Including Medicare, Medicaid, and Community Based Alternatives (CBA) for the state of Texas.

Markets we will be in .

(need to insert numbers here) the markets we will be focusing on are the following.
1. CBA, for home health care (nutrition and wheelchairs, Bariatric, Beds ect)
2. Medical Oxygen, Medicare, and Respitory Medicine (oxygen, Cpap, Bipap and Nebulizers, and Nebulizer meds)
These are the secondary markets we plan on expanding into latter in 2008 early 2009
1. Medical Drug trials, in house offices for doctors.
2. Infusion Centers, intravenous Drug delivery, in house IV therapy.

(need size of each of these markets, need demographics of each of these markets. Need demographics of rural vs metro distribution of patients.)


Competitive Bidding.
In the last 4 years of Medicare, and Medicaid in an effort to reduce costs, began to implement Competitive Bidding. Focused mainly on Oxygen and Oxygen Therapy. There are to be 10 Cities that start this in the first test phase. Dallas Fort worth is to be one of the cities to begin the Comp bidding process. Additional cities are to be added at a latter date. Eventually it could become nationwide. Any strategy that we move forward with, will have to at some time be compliant with this.

Startup

Patient Sourcing Strategy



Acquisitions
o The fast Eddie scenario
 What we are buying
 How we can buy it
 What we have to change about it
 Speed to market
 Eddies Current model
 Improvements we can make
• Process improvements
• Paperless improvements
• Inventory Improvements
• Marketing improvements
• Training




JV Partnerships
Finding and keeping good Sales people are one of the key components to this business. Many sales people who have achieved a certain level of success are important keys to success of this venture and expensive to hire and keep. One of the methods we have determined to be a way to tie them to the company, is to provide a buy in. we will put an office in a rural area, and offer the sales person, up to 20% buy in through a proformance metric, and time with the company. This buy in can exsist as long as the sales person stays with the company. We may move it from profit sharing to direct ownership of the site over time.

The Rural Route

Outsourcing

Software

Competition

Financials

Exit strategy

The Management Team
 

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