Last week, we talked about setting up the structure of our LLC for purchasing distressed properties: contracts, corporation categories, issues like that.
After that, we dealt with the infrastructure: everything you need to get a business - even a small investment group like ours - rolling. I comfort myself by noting that every piece of research and work I do now amortizes itself for the future. It’s beneficial not only for my own investment efforts, but for any my clients set up in the future as well.
I define infrastructure as more than the technology that our company will use; I also consider the business plan and the business processes part of its essential infrastructure. All that needs to be written down somewhere - keeping it in someone’s head doesn’t do anyone any good. In fact, it only causes problems later with mismanaged expectations and incorrect assumptions.
I spent considerable time putting together a binder that will represent the architecture of our game plan. It has eleven key categories, all of which relate to any business:
- Mission and Vision Statement
- Business Plan
- Marketing Plan
- Financials
- Legal Issues
- Vendors
- Alliances and Partners
- Resources
- Processes and Best Practices
- Investors
- Communications
This binder will progressively fill up until it represents the core culture and structure of the investment group.
We also tackled our technological and physical infrastructure. Because we’ll be looking for buyers across the country, we researched toll-free telephone numbers. My partner, Bob Rinehart, also launched the creation of a customer-relationship management (CRM) system, so that we can keep track of not only our prospects and buyers, but the properties themselves. He will first use an off-the-shelf small database to develop the basic structure. He will then be coding and designing the full system using the open-source SugarCRM application.
We talked about remaining virtual, but decided that there will be so much collaboration between Bob and myself that we need to be in the same physical space, along with an administrative person. We looked at ten office suites, and determined that going with Regus, an executive suite management firm, was the best way to go. Rather than making a year-long commitment, which most commercial real estate agents are asking for currently, we were able to make a six-month commitment with three-month options after that.
We’re trying to make money the old fashioned way, which includes saving it too.
