business

FOR BUSINESS AND REAL ESTATE INVESTORS

There are three simple reasons to buy a business or invest in real estate:

1) Repay the business loan or mortgage

2) Make a profit or salary

3) Have a competitive ROI

Real estate investing is a business so naturally you need a real estate investment business plan. Spend some time deciding how much capital you have to begin with and how much time you are willing to invest. These decisions made early will help you decide what types of transactions you want to get involved with.

Excellence Brokers is your partner to help evaluate and plan your business start up, acquisition or revenue property investment.

We offer different business models

What is a business model?

At its core, your business model is a description of how your business makes money. It’s an explanation of how you deliver value to your customers at an appropriate cost.

According to Joan Magretta in “Why Business Models Matter,” the term business model came into wide use with the advent of the personal computer and the spreadsheet.

These tools let entrepreneurs experiment, test, and, well, model different ways that they could structure their costs and revenue streams. Spreadsheets let entrepreneurs make quick, hypothetical changes to their business model and immediately see how the change might impact their business now and in the future.

In their simplest forms, business models can be broken into three parts:

model 1

Everything it takes to make something: design, raw materials, manufacturing, labor, and so on.

Model 2

Everything it takes to sell that thing: marketing, distribution, delivering a service, and processing the sale.

model 3

How and what the customer pays: pricing strategy, payment methods, payment timing, and so on.

As you can see, a business model is simply an exploration of what costs and expenses you have and how much you can charge for your product or service.

A successful business model just needs to collect more money from customers than it costs to make the product. This is your profit—simple as that.

New business models can refine and improve any of these three components. Maybe you can lower costs during design and manufacturing. Or, perhaps you can find more effective methods of marketing and sales. Or, maybe you can figure out an innovative way for customers to pay.

Keep in mind, though, that you don’t have to come up with a new business model to have an effective strategy. Instead, you could take an existing business model and offer it to different customers. For example, restaurants mostly operate on a standard business model but focus their strategy by targeting different kinds of customers.